CBN asks Ovia, Elumelu to quit
Cover Stories, Latest News Jan 19, 2010 Emma Ujah, Anuja Bureau Chief & Tina Onah
The new banking reforms of the Governor of the Central Bank of Nigeria (CBN) Mr. Sanusi Lamido Sanusi, has claimed its latest victims, the Managing Directors of the United Bank of Nigeria (UBA) and Zenith Bank, Messrs Tony Elumelu and Jim Ovia, respectively, as the apex bank has asked them to quit, latest July 31, this year.
This is in line with the CBN new regulations which provides for tenured appointments of banks’ Managing Directors, fixed for a maximum of two terms of five years, each.

Director, Banking Supervision of the CBN, Dr. Samuel Oni, who announced this at a press briefing in Abuja, yesterday, said the decision which was taken by the Board of the apex bank, on Monday was “to ensure that the banking institutions are not personilaised.”

According to him, “all bank MDs who would have served for the period of 10 years by July 31 shall seize to act in that capacity”.

Besides, the CBN said that all those who are MDs of banks which are products of either mergers or acquisition in the 2006 consolidation exercise shall have their pre and post merger years of service combined, for the purpose of the new regulations.

CBN directed that all bank boards should immediately review the terms of appointment of their MDs to reflect the new regulations.

All MDs who would have attained the 10-year maximum two-term period by July 31,should immediately start a succession programme to enable a successor emerge on or before the terminal date.

CBN also said that any MD who quits a bank, having attained the 10-year maximum period in a bank shall not be eligible appointment in the same bank or any of its subsidiaries until after three years
http://www.vanguardngr.com/2010/01/19/cbn-asks-ovia-elumelu-to-quit/

How nice

I forsee northerners been asked to take over those 2 banks as their MDs.

Sanusi's script is still working according to plan.

these banks are not owned by Sanusi and company. Shouldn't it be up to shareholders to remove CEOs and MDs?

Sanusi is going about all this wrong. He is scaring share holders and investors away with his cowboylike way of publicly announcing all this trash.

Theres a specific way you go about things, this is not it.

Boy! This is really working for them to islamize Nigeria. These were the things Ojukwu saw in 1967 and resisted. The Muslims have the army, the Oil and the treasury (CBN), now they have gone further to take over private banks. Christians may not believe me but we will all see it happen if God doesn't intercept them.

I think it's time Christians should not go to church only to seek for prsperity. We need to also pray for our nation. Your faith is being contended. Like Jude advised us in Jude verse 3, to earnestly contended for the faith which was once delivered to us.

They may try that in the North central (Jos), they may also try that in the south west and south south but that can never ever happen in the whole of south east. We will pray against it and also resist them even if it leads into another civil war, we don't care.

Removing them is not my probs but replacing according to his script is the issue.

July 31, 2010 quit notice is just too long! What does he want to achieve with that?

These banks obtained their licences from where? Anyone say cbn, ?So doesn't it make sense for the cbn to regulate and oversee their activities? Last time i looked,the banks were PLCs,not anyone's asusu. The interest of the shareholder is paramount.

darqly:

These banks obtained their licences from where? Anyone say cbn, ?So doesn't it make sense for the cbn to regulate and oversee their activities? Last time i looked,the banks were PLCs,not anyone's asusu. The interest of the shareholder is paramount.

If its in the interest of the shareholders, shouldn't the share holders then decide who they want as their CEO and MD?

I don't have much knowledge of the banking industry or even of private biz owndership so Il appreciate more info pls

These Ishmaelites are nt joking,they mean real biz.My problem is that we the chosen ones have too much time in our hands fytin each oda instead of bein in tune wt happenins around.
My God!!!

my question is why?

davidylan:

my question is why?

Because they were not born to lead.

Hausa muslims will not finish Nigeria.I heard from a witness of 1967 Civil war that we shd not blame ojukwu at all.He foresaw d northernization under Gowon as head of state.Dis pple are opportunist.Power has returned to them now.See how slow&tight d economy is under Sanusi.This are getting more harder with his fake reforms,that can be likened to attack on enemies/terrorism in disguise

probably because of what he witnessed in the banking sector

if properly executed, a system of term limits can curtial the conversion of banks and depositor funds to 'family affair'

most of these bank chiefs are enriching themselves in frightening ways. term limits, and the possibility of investigations by future ceos may temper their greed.

an example - a story making the rounds is that most of the buildings used by zenith bank on ajose adeogun are owned by ovia through a proxy real estate company or some such. is this ethical? can one be sure that the bank is not paying way above what the properties are worth?

of course, a sharp ceo can simply anoint a successor and commence remote controlling from the background.

[/quote]probably because of what he witnessed in the banking sector

if properly executed, a system of term limits can curtial the conversion of banks and depositor funds to 'family affair'

most of these bank chiefs are enriching themselves in frightening ways. term limits, and the possibility of investigations by future ceos may temper their greed.

an example - a story making the rounds is that most of the buildings used by zenith bank on ajose adeogun are owned by ovia through a proxy real estate company or some such. is this ethical? can one be sure that the bank is not paying way above what the properties are worth?

of course, a sharp ceo can simply anoint a successor and commence remote controlling from the background.

[quote]

@OYB

I support the Capitalist system. All this noise is just to pave way for Islamic banking. Who stops you from setting up your own bank. Or atleast a microfinance bank now the minimum capital base is still N25m. Many guys are growing their micro banks and hoping to make it a commercial bank like Mr. Uche Oga of Olive Micro bank.

Don't support people that don't work, but would like to embezzle Government money. They believe the Nigerian crude oile belongs to their allah and they need to suck it dry, if not through CBN it would be through NNPC.

Well, the south southerners have made the mistake of turning away from the agitation that led to the war in 1967 and I know they are regretting it now. 40 years after the civil war, Nigeria is yet to be fixed.

A bank can and should never be a one man show and there is nothin abt dis policy bein a northern or islamic agenda. For evry 1naira a shareholder has depositors hav 20naira the banking industry cannot be allowed to be run like some peoples personal estate because it isn't. Proudlynaija in a company lik a bank the shareholders would stil choose their MDs what this new policy tries to achieve is to ensure that those who floated the bank does not remain as MDs in perpetuity.Even d term in my opinion is too long maybe a single tenure of 5yrs or 2terms of 3yrs should do if u own the bank u can remain as Chairman of d board 4 as long as u want

I hate sanusi's critics.
Do you know that Ibru and Akingbola can finance Lagos $3billion Light rail project
You say if they stay long,they would have continue stealing,and of they dont IF EVEN THEY WILL,it would not be continous and they cant take money (large sum)at once cause it will raise eye brows,

I think it is good,and in most developmed economies,they term of heads of baks are also regulated,.
LEAVE SANUSI ALONE

Gold-mind:


@OYB

I support the Capitalist system. All this noise is just to pave way for Islamic banking. Who stops you from setting up your own bank. Or atleast a microfinance bank now the minimum capital base is still N25m. Many guys are growing their micro banks and hoping to make it a commercial bank like Mr. Uche Oga of Olive Micro bank.

Don't support people that don't work, but would like to embezzle Government money. They believe the Nigerian crude oile belongs to their allah and they need to suck it dry, if not through CBN it would be through NNPC.

Well, the south southerners have made the mistake of turning away from the agitation that led to the war in 1967 and I know they are regretting it now. 40 years after the civil war, Nigeria is yet to be fixed.

^^^^

here we go again with the islamic banking , northernisation bull. if soludo had been fulani , people like you would have been shouting the same thing. i almost wish he had folded his arms and let the banks collapse. of course if he had  done that you lot would be here shouting what do you expect from a woro chewin aboki

do you read the papers at all? are you so blinded by tribalism that you cannot see the the bank chiefs were living it up on depositors funds and cooking the books?

if you want to bring religion into it, better read up on brother erastus. theres a thread on him in the religion section.

proudly9ja:

If its in the interest of the shareholders, shouldn't the share holders then decide who they want as their CEO and MD?

I don't have much knowledge of the banking industry or even of private biz owndership so Il appreciate more info pls

How is the CBN picking the bank's CEO's?

Its only telling them to hand over to their successor (either deputy or who the board of the bank picks).

The CBN has a RIGHT to regulate them because it was from the CBN they got their license.

Shareholders before buying share KNOW the banks are regulated by the CBN

[/quote]here we go again with the islamic banking , northernisation bull. if soludo had been fulani , people like you would have been shouting the same thing. i almost wish he had folded his arms and let the banks collapse. of course if he had done that you lot would be here shouting what do you expect from a woro chewin aboki

do you read the papers at all? are you so blinded by tribalism that you cannot see the the bank chiefs were living it up on depositors funds and cooking the books?

if you want to bring religion into it, better read up on brother erastus. theres a thread on him in the religion section.



[quote]

@Oyb

Are u sure u are not the one who's being fooled. You people keep shoutin at Akingbola and Ibru. Prof. Soludo did a good job in recepitalizing those banks, but after that, they went on to disburse loans anyhow becos they have so much money in their vault owing to the recapitalization. Also remember if not for the recapitalization, Nigerian banks couldn't have survived the global financial meltdown that came last year,
Oyb, watch if you are not fooled by their deceptive method. We all heard when Prof. Jubril Aminu was indicted in a 10 million Euro fraud/bribery involving Siemens, but the whole story went down the drain becos he's among the cabal.
Well I hope that Akingbola and Ibru be brought to book, but let's watch how Sanusi would fail with his northern agenda.

Why is Vanguard only reporting half of the changes by the CBN.

Got this from Reuters


ABUJA, Jan 19 (Reuters) - Nigeria's central bank on Tuesday limited the tenure for chief executive officers at domestic financial institutions to a maximum of 10 years to prevent a repeat of last year's multibillion-dollar bank bailout.

Bonds

The regulator said it would give affected banks up to July 31 to find successors to their current CEOs. It would not specify which banks would be impacted by the regulation.

"The central bank of Nigeria , has issued the following guidelines to address some corporate governance issues in the (depository) banks," it said.

To avoid conflicts of interest, the regulator also prohibited top central bank officials from seeking jobs with private financial institutions for at least three years.

Central Bank Governor Lamido Sanusi has made banking reforms one of his top priorities and imposed a series of bold measures welcomed by foreign investors.

Nigeria's central bank has injected about 600 billion naira ($4 billion) into the banking system since mid-August. It has also sacked senior executives after auditors found lax governance at nine financial institutions had left them dangerously undercapitalised.

It injected 400 billion naira ($2.7 billion) into Afribank AFRB.LG, Finbank FIBP.LG, Intercontinental Bank INBK.LG, Oceanic Bank OCBK.LG and Union Bank UBNP.LG last Aug. 14 and sacked their top management after the first round of the audit.

Two months later, the central bank said it was providing 200 billion naira to four more banks -- Bank PHB BPHB.LG, Equatorial Trust Bank, Spring Bank SPRN.LG and Wema Bank WEMA.LG -- also judged to be facing a grave liquidity issues.


http://www.reuters.com/article/idUSLDE60I1Y920100119

I really can't understand why the uninformed insist Sanusi is part of some underhand plot to northernise banks- how is this possible in this age? On a lighter note,how many hausa people can u count that can effectively run corporations? They can't even finish school. Shareholder associations in nigeria are just greedy and selfserving,and look for what they stand to gain now now,as opposed to the longterm and sustainability of a business. I believe specialist banks for different sectors is the future as opposed to the universal licence initially granted.

Apparently some islamic banks from south africa are interested in some of those bank

You see wetin i dey tell you, sanusi wants to northernize these banks

He even got southerner to annouce his eveil plan, why are these people so blind
always following northerners like Mr Ogbulafor, bankole and goodluck
seems these northerners have voodoo to be controlling all us o


we will continue whining praying until things get better

These banks obtained their licences from where? Anyone say cbn, ?So doesn't it make sense for the cbn to regulate and oversee their activities? Last time i looked,the banks were PLCs,not anyone's asusu. The interest of the shareholder is paramount.
So AIT, Channels, Silverbird CEOs should be appointed by NBC since they all got their operating licenses from it. Or maybe Cadbury and NB PLC should be told who should be their CEOs.

I think that a lot of people on NL are uninformed sentimental and purely anti-govt.
@adconline the CBN is not appointing MDs 4d banks nd the banking sector can't be compared wit d broadcasting sector, if AIT should fail hw many of us wil lose moneies? So u won't expect the regulations to be the same.

I think that a lot of people on NL are uninformed sentimental and purely anti-govt.
@adconline the CBN is not appointing MDs 4d banks nd the banking sector can't be compared wit d broadcasting sector, if AIT should fail hw many of us wil lose moneies? So u won't expect the regulations to be the same.
Setting term limits stipulates who's qualified to be an MD or a CEO. It's should be the job of shareholders to do that. Did u remember how Mr Odimegwu, former MD of NB PLC was made to leave? Security and Exchange Commission did not set the rules.

adconline:

I think that a lot of people on NL are uninformed sentimental and purely anti-govt.
@adconline the CBN is not appointing MDs 4d banks nd the banking sector can't be compared wit d broadcasting sector, if AIT should fail hw many of us wil lose moneies? So u won't expect the regulations to be the same.
Setting term limits stipulates who's qualified to be an MD or a CEO. It's should be the job of shareholders to do that. Did u remember how Mr Odimegwu, former MD of NB PLC was made to leave? Security and Exchange Commission did not set the rules.

Since the board of directors have failed to do that because the present CEO's have turned themselves into semi-gods in these banks, the CBN has a right to step in. You cannot compare banks to broadcasting . Banks are systematically important to the economy.

The CBN is not saying who should be CEO or not, the new CEO's can be outsiders and not someone from within.

Can someone in d house help me explain the limitations of CBN pls?

Our brothrs and sisters in the diaspora how is it done abroad?Do the have term limits?Is bank ownership a family affair?

they dont  have term limits. It's up to the shareholders to fire MD/CEO. Apple CEO, Steve Jobs, was once fired from the company he founded. Folks like Ibru and Akingbola could still wreck havoc on the system  with their set term limits. It's for CBN to put in place an effective monitoring system through auditing and transparent accounting practices. I dont want a good CEO or money manager to be relieved of his/her duties because of term limits. You dont change a winning team. Does NB PLC have term limts? I want a CEO that has got a proven track record