CBN Reform Damaging Economy, Says Gusau
•‘Anti-graft war ineffective and selective’
From Kunle Akogun in Abuja, 04.19.2010

The National Security Adviser (NSA), General Aliyu Mohammed Gusau (rtd), has faulted the on-going banking sector reform, saying the Central Bank of Nigeria (CBN) intervention "seemed to have damaged economic activities in the banking sector to the detriment of the larger society".

Gusau also reviewed the on-going anti-corruption campaign in the country, writing it off as "ineffective and selective" but promised that the current administration would fight corruption employing equal standards across board.
The NSA gave these verdicts at a security awareness seminar organised for the newly appointed ministers by his office in Abuja at the weekend, according to a statement by his Chief Press Secretary, Adebisi Adekunle.

According to Gusau, the travails of the banking sector and the way they were addressed reflect the double standards, which critics perceive in the administration of justice, lamenting that "only a few banks were penalized for what every bank seems to be doing".
Gusau said "the fragility of the economy further dictates that offenders be interdicted without damaging the sector.

CBN under Mallam sanusi Lamido Sanusi had fired the executive management of eight of the 24 banks in the country last August and October-having found the institutions to be in grave situation after a special audit jointly conducted by the apex bank and Nigeria Deposit Insurance Corporation (NDIC).

Consequently, the banking watchdog provided N620 billion ($3.9 billion) in liquidity and loan support to the eight institutions, stressing that lax management had left the banks dangerously undercapitalised.
These institutions had since been taken over by CBN appointed managements, which had since been running the banks as going concerns until new investors are found to recapitalise them.

CBN had put the non-performing loans (NPLs) of the eight banks at N1.524 trillion. The amount, it pointed out, represented 60.75 per cent of the industry’s total NPLs.

Given the provisions for bad loans, which the rescued banks and other banks were compelled to make by the apex bank, banks have since shut their doors to borrowers.

CBN had also taken other measures which include the proposed categorisation of banks and proposed scrapping of universal banking within the next 18 months, which has been condemned in some quarters. 

On anti-corruption, Gusau said: "The anti-corruption campaign has been largely considered to be ineffective and selective ,  because it penalizes a few unfortunate individuals while society see many they consider guilty enjoying their loot in freedom".

Acting President Goodluck Jonathan had earlier lamented that the anti-corruption war lacks vigour and that the crusade would be reinvigorated.

Gusau said some of the anti-corruption agencies in the country have credibility problems, as "their leaders are being accused of wrong-doings".
Stating that corruption is an economic crime that threatens the survival of the country, the NSA said it is difficult to prosecute offenders because of the lengthy delays in court processes "while criminals go in and out of prisons at will, becoming serial offenders".

He told the ministers that security of lives, properties and livelihood is threatened by crime, adding that "the crime situation in the country is so high that the law enforcement agencies appear overwhelmed by the sad situation".

Gusau said "very little attention is paid to the prevention of crime," insisting that pro-active security measures could assist to prevent crimes while good laws and efficient penal system will deter criminals and reduce crimes.

The NSA, however, lamented that "the country's current legal system seems to promote crimes".

Gusau, whose address at the seminar was titled "An overview of the nation's security", cautioned the new ministers on the security implications of any lapse in their actions.

He said ministers of the federation must be at the vanguard of efforts to restore sanity and stability as well as to increase public confidence in the ability of governance to function as expected.

Stressing that the enhancement of human development is a key security objective, the NSA added that “Nigeria is rated low in human development index issued periodically by international institutions.”

Public officials, he said, have to be conscious of the impressions they convey by the way they value or depreciate the worth of the average Nigerian.

He said "the carnage in Jos and the summary killing of Boko Haram suspects by the police showed the world that Nigerians do not value themselves.”

Gusau also said with incidence of polio, guinea worm, malaria and other disease, which have been eradicated in other parts of the world, the commitment of the government to human development has since been under question.

The same development, according to him, prevails in the country’s educational facilities as well as given indices of the high unemployment level, poverty, low food security arising from the country’s inability to feed its people and decaying infrastructure.

Charging the ministers to be conscious of the impact of public policy on the nation’s security, the NSA said, “I want you to always remember that national security interests are paramount and must be respected. Public policy can have significant impact.”

He said it was important for certain public policies to have security inputs just as the introduction of policies, which may be considered controversial, are implemented with adequate preparation by security agencies.

He tasked the ministers on the need to carry the people along in policy plan and implementation, saying that to do otherwise have serious consequences both in the short run and long after.

The one-day seminar took the new ministers through other relevant areas like Foreign Intelligence Activities and the Threats to Security, Security of Information, Documents and the Operations of Government and The VIP: Enhancing Personal Protection Security and Safety.

Other papers presented were on The Anti-corruption Campaign and Crime and Society: Policing and the Current Challenges of Law Enforcement.

The Secretary to the Government of the Federation Yayale Ahmed and Head of Service of the Federation Steve Oronsaye moderated the discussions.

adconline:

Did this man get a "C' in economics in secondary school? Someone who could not forecast that there would religious riots in the north is not qulified to be an LG chairman let alone a national security adviser

tkb417:

i wont understand the logic in your agument in a billion years

Sanusi shd go because a stealing govt has lost confidence or because he has 'eroded growth'?

what is growth? The nation has grown in sanusis era compared to the erstwhile regime brother!!!!!!!

what has the incarceration of Bank MDs gotta do with economic growth?

hehehehehe, i laff in spanish
u dont have a prayer bro

tkb417:

LOL!

i don tire, u dont have a basis for your argument so im stoping here

adconline:

Do you want to critisize consrtuctively or are you just going to attack his person? Me I still dont seen anything wrong in what he said

I wonder what's constructive about his statement. What credibility does this man have to criticize Sanusi? Under his watch, a lot of Nigerians had been killed because of his lack of vision. He has consistently failed to see the signs of violence in Niaja. Here is a man whose office was responsible when Mutallab Sr informed them that his son, Abdul Mutallab was on a suicide mission, he did nothing with his authority, now he's coming off to you an eminent economist even though he has clearly failed in his capacity as the Chief Security Informant.

tkb417:

Maybe he shd resign and let the rot continues

he inherited banks with bleak futures, took over an economy with a galloping interest rate, took over an ailing economy in short

pls, do a quick recap of the indices and lets see if the economy is worse off

maybe, losing confidence = not been able to launder money through bank CEOs

irresponsible lot and wtf did Remi Babalola do while in office?
These are chaps i know very well.  They did nothing

im not saying Sanusi is 100% ok but hey, hes got to do this or else, we'll suffer later. His approaches and methods might be faulty, what the FG needs to do is work with him and make their concerns known through the Daggash, Babalola and othe knowledgeable professionals in the govt and not making spurious remarks that wont do nothn.

for months, i can do bizniz knowing fully well, the dollar will not gyrate beyond 148-151 circa, wtf are these guys talking about?
they wanna bring back round triping, authority stealing in the banks?
hell no

adconline:

Do you want to critisize consrtuctively or are you just going to attack his person? Me I still dont seen anything wrong in what he said

I wonder what's constructive about his statement. What credibility does this man have to criticize Sanusi? Under his watch, a lot of Nigerians had been killed because of his lack of vision. He has consistently failed to see the signs of violence in Niaja. Here is a man whose office was responsible when Mutallab Sr informed them that his son, Abdul Mutallab was on a suicide mission, he did nothing with his authority, now he's coming off to you an eminent economist even though he has clearly failed in his capacity as the Chief Security Informant.

OAM4J:

I doubt you know Gusau.

He was not yet the NSA during Mutallab mission.

Arkison:

He wasn't the NSA, but Mutallab inform him first about his fears. He didn't act on his insticts to have to boy brought back by Nigerian intelligence agencies, rather he referred to Baba Mutallab to American Embassy, which was unforturnately also manned by low level intelligent officials.

OAM4J:

I doubt you know Gusau.

He was not yet the NSA during Mutallab mission.

OAM4J:

The father had no knowledge of the exact whereabout of the son at the time he was seeking for advice.

The best advice Gusau could give at the moment was to advice the father to inform the embassy. Today that singular advice followed was the only credible thing for the nation in the whole saga.

Arkison:

Agreed. But what can you say about his performance during Obj, where, the security of this country degenerate to a level never know before. What is his role in: the invasion of the Nigerian army in Odi, ZakiBiam, Jalingo etc. What did he not do in the Jos crises from 2001 till 2007? What is role in the Sharia related violences that erupted from his hometown Gusau. We need to review the state of the security situation under his watch before he can be considered a security guru.

My own feelings he is a dangerous man. He has been responsible or involved in the Nations security for a number of years and he has nothing to show as success other than his 3Stars as general