Beaf:

Sanusi Maijama, the president of the The Nigerian Association of Small-Scale Industrialists (NASSI) was on AIT recently, bitterly complaining about how Sanusi is killing off the small scale sector industrial in Nigeria with his agbero tactics. I wonder if it's just that Sanusi (being a mere bush man) does not see the leveling of industry in the name of "risk management" to be a concern, but Gusau, the National Security Adviser, very rightly does? Was Sanusi Maijama imagining things, when he basically called for Jonathan to wash Sanusi away?

Sanusi is just a bush man flailing for breath in a job that is beyong his marabout talents. Whereas, the National Security Adviser is a wily intelligence man of World renown. . . two poles apart.

While the argument rages, can someone prepare marshal music and a firing squad at bar beach? Let's fulfill one of Sanusi's dreams.

stealth01:

Except Gusau has a political ambition/agenda he shouldnt be making such controversial public comments. Last time i checked, his portfolio was 'NATIONAL SECURITY ADVISER' to the Presidency and not minister for finance or Information&communication

stealth01:

Except Gusau has a political ambition/agenda he shouldnt be making such controversial public comments. Last time i checked, his portfolio was 'NATIONAL SECURITY ADVISER' to the Presidency and not minister for finance or Information&communication

Beaf:

Sanusi Maijama, the president of the The Nigerian Association of Small-Scale Industrialists (NASSI) was on AIT recently, bitterly complaining about how Sanusi is killing off the small scale sector industrial in Nigeria with his agbero tactics. I wonder if it's just that Sanusi (being a mere bush man) does not see the leveling of industry in the name of "risk management" to be a concern, but Gusau, the National Security Adviser, very rightly does? Was Sanusi Maijama imagining things, when he basically called for Jonathan to wash Sanusi away?

Sanusi is just a bush man flailing for breath in a job that is beyong his marabout talents. Whereas, the National Security Adviser is a wily intelligence man of World renown. . . two poles apart.

While the argument rages, can someone prepare marshal music and a firing squad at bar beach? Let's fulfill one of Sanusi's dreams.

SapeleGuy:

It is amazing that people on this site who can grasp complex economic theories refuse to come to terms with a joined up approach to risk and national resilience.

4 Play:

The contraction in credit to the private sector is as a result of banks rebuilding their balance sheet which was severely damaged during the faux boom of the Soludo era. Because the contraction followed Sanusi's actions, people automatically assume that he is responsible for it. I guess it's the kind of reasoning that led people to associate sunshine with malaria.

[size=18pt]Bank Reforms crippling Real Estate sector, says REDAN[/size]
From Nkechi Onyedika, Abuja
THE Real Estate Developers Association of Nigeria, REDAN, yesterday said that the on-going reforms in the banking industry have grounded developmental activities in the real estate sector in the country.

The National President of REDAN, Chief Olabode Afolayan, who disclosed this when members of the association paid a courtesy call on the Minister of Land, Housing and Urban Development, Hon Isiegu Essien, in Abuja, regretted that the present reforms have weakened abilities of banks to provide essential services, especially the real estate which requires huge capital injection.

He said: Sincerely, we had looked at the banking reform as a thing that would open up lots of opportunities for investors in the real estate sector, but honestly, in the last couple months, it has been a very unfortunate situation. The Banks have not impacted on the real estate sector in the last say six months. They have not been able to give funding. Even the bank guaranty they used to give in the past has also stopped. When the reform was put in place, we had thought it would be a holistic approach at reforming all sectors of the economy.

"But since it began, no meaningful service could be gotten from banks any more. The banks are now struggling to be in business, they are not investing any money. The reform has weakened abilities of the bank to provide essential services. Now, this has huge implication on the economy. The real estate sector is not just crippled; it is destroyed by this singular non-performance of these banks.

"When you mention reform, we had expected that there should have been cushion effects on the economy. The short and long term effects of such reform ought to have been envisaged. I mean, for almost six months no single transaction in the real estate, tell me for how long will one has to wait.

Afolayan, who urged the Minister to come to the aid of developers in the country by tackling perennial problems facing the sector, also called on Essien to use his influence as a former honorable to fast-track the passage of the land reform before the National Assembly.

While soliciting for the minister's support in making opening up opportunities for accessing long-term loans in the country, he said: "How developers can enjoy same policies with their counter-parts abroad. Like in abroad special long term fund are created for the real estate sector, such is not here. Our suggestion is that long-term Funds like the Pension fund could be channeled in delivery houses in the country. We urge the minister to look at such possibility.

"Expedite the completion of the land use act in the NASS. We are appealing to state government to provide land so that developers across the federation can have adequate access to land. We urge the federal government to shove-up provision of infrastructure so as to enable developers build their house with ease.

"Hydrafone technology concept of building houses should be encouraged in the country because these are the last technology use in advance country. No plastering, it requires very little cement, and houses can be built in say two days.

In his response, the minster, who applauded REDAN for being the first body to officially pay him a visit since the ministry began operation 10 days ago, assured the team of his preparedness to work the association.

"The ministry is about 10 days old, and you are the first set of people we are receiving. For many years, Nigeria has not provided house for her teaming population, especially the low income earners. We could recall that the last time such houses were built was during the Shagari administration in 1983. What has been happening since then is that houses have been provided for the luxury group and not the social group that is why we have said that we intend to embark upon massive provision of houses. In the next 10 months, 54,000 houses would be provided in all senatorial district across the federation."

[size=18pt]IMF Backs Sanusi’s Banking Reforms[/size]
By Ayodele Aminu, 09.16.2009

The International Monetary Fund (IMF) has endorsed the ongoing banking reforms by the Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi, which necessitated the removal of the Chief Executive Officers of five banks last month.

The endorsement came yesterday in Abuja from the fund’s country Chief and Represen-tative in Nigeria, David Nellor.

THISDAY learnt that the endorsement was a fallout of the meetings the IMF delegation from Washington D.C, United States of America,  held with top officials of the CBN, which threw more light on the banking reforms.

CBN had on August 14 sacked the managements of five banks – Afribank, FinBank, Intercontinental Bank, Oceanic Bank and Union Bank – over the huge non-performing loans of their banks and other alleged financial abuses.

The apex bank injected N420 billion into them, saying lax governance had left the five banks dangerously undercapitalised.

Thereafter, it appointed new helmsmen (John Aboh (Oceanic Bank), Lai Alabi (Intercontinental Bank), Susanne Iroche (FinBank), Nebolisa Arah (Afribank) and Funke Osibodu (Union Bank) into these institutions to stabilise and make them attractive for core investors.

Nellor, in a statement made available to THISDAY in Lagos, said he "endorses the CBN’s intervention in some banks as essential to building a sound financial sector that can promote long term growth and development consistent with the goals being set for the Vision 2020.”

He added: “A core principle of an effective banking system is public trust - trust that deposits will be safe, trust that banks allocate financial resources to productive activities, and trust that banks will manage risk. Underlying this trust is a public expectation that sound governance practices are employed in the banking system. These fundamental tenets enable the banking system to promote sound economic growth and development. To that end, the central bank as regulator has the responsibility to ensure that the principles of banking enshrined in legislation and the CBN’s mandate are preserved.”

Like many countries during the crisis, the CBN, according to the IMF representative, followed a systematic process of examining the banks.

“Special examinations of bank balance sheets by the CBN and NDIC were launched. The purpose of the examinations was to verify asset quality and examine related party transactions. This process is and should continue to be conducted for all banks in the system.

“Based on the findings of these initial examinations, the CBN appropriately required additional provisioning in all banks and in others it was essential for it to intervene by replacing management and injecting funds into the bank balance sheets. In the latter cases, various combinations of severe loan delinquency, undercapitalisation, systematic liquidity shortfalls, and serious governance problems justify such action based on the mandate given the central bank,” Nellor said.

Consequently, he said, the fund is in support of the CBN’s public commitment to protect depositors and creditors.

Nellor said the immediate goals were to stabilise the banks, seek full recapitalisation through loan recovery and new investors, and strengthen the corporate governance and credit practices in the banks.

“Over time these actions should enable the central bank to remove itself from both the management and balance sheets of the banks in a manner consistent with financial stability,” he said.

naijaking1:

^^^
Very soon one of these Sanusi's analysts will dig up some offensive information about Chief Afolayan, and infact tell us why he's not qualified to say those "things"

mikeansy:

Violent

Your IMF Backing was on 16 September 2009. We are in April 2010 and Nigerians are directly feeling the pinch of Sanusi's anti-growth policies and you are still quoting IMF assessment last year?

mikeansy:

http://nigeriamasterweb.com/paperfrmes.html

IMF backs stronger Chinese currency as Asia powers ahead
(AFP) – 14 hours ago

WASHINGTON — A stronger yuan is "essential" for both the Chinese and world economies, the IMF said Wednesday as it projected breakneck growth for China and a powerful post-crisis bounce across Asia.

The International Monetary Fund said the Chinese yuan was "substantially" undervalued, heaping more pressure on Beijing to allow the currency to strengthen to help rebalance skewed world trade.

The IMF's latest global report projected that gross domestic product in China, which is set to overhaul Japan this year to become Asia's biggest economy, would rocket by 10 percent in 2010 and 9.9 percent in 2011.

But a yuan adjustment would help China tackle "excess demand pressures," the IMF said in an apparent reference to the threat of rising inflation, and give other emerging economies confidence to let their own currencies strengthen.

"This is essential for China given its large role in the global market," the Washington-based Fund said.

"Greater currency adjustment in Asia would facilitate adjustment in other emerging economies that may fear losing market share if their currencies were to appreciate alone."

The yuan has been effectively pegged to about 6.8 to the dollar since mid-2008. Speculation is growing that Beijing may soon alter its exchange rate policy, as a US-led clamor for change intensifies.

Critics, including a growing number in Asia as well as the United States and Europe, say an undervalued yuan gives Chinese manufacturers an unfair advantage by making their exports cheaper.

As a whole, according to the IMF, Asian economies will expand an average 6.9 percent this year and 7.0 percent in 2011, boosted by both domestic demand and foreign trade.

But it urged regional governments to plan an orderly exit from stimulus policies that helped them weather the global downturn far better than the United States or Europe.

Japan's moribund economy will return to growth of 1.9 percent this year but persistent deflation, weak domestic demand and a stagnant employment picture threaten a fragile recovery, the report said.

Fretting about the risk of contagion from Greece, the IMF cautioned that Japan would in time have to tackle its public debt, which at nearly 200 percent of GDP is the highest in the industrialized world.

India should grow by 8.8 percent this year, the report said, but has "less fiscal room for maneuver" than China and needs to trim its swollen public sector and debt.

Southeast Asia's five biggest developing economies were seen expanding 5.4 percent in 2010.

Australia's resource-driven economy should strengthen 3.0 percent this year, helped by voracious demand for minerals and other commodities to sate Chinese industry's appetite for raw materials.

The IMF's China growth forecast was well above the 8.7 percent growth in 2009 and Beijing's own annual target of eight percent, seen as the minimum needed to create enough jobs in the massive nation to prevent unrest.

Export-led China is seeking to reduce its dependence on overseas shipments and government-backed investment by pumping up domestic spending. The IMF said Asia in general had to shift off its historical dependence on exports.

The Fund cautioned Asian governments against asset bubbles and floods of speculative money that could derail growth, as Western investors seek higher returns and froth builds up in property markets in China and elsewhere.

"For policymakers in Asia's export-driven economies, who now face the prospect of weaker external demand conditions, a key challenge is to effect a durable rebalancing toward domestic sources of growth," it said.

"With regard to monetary policy, it may not be too early to start unwinding the stimulus if output gaps are closing and inflation pressures are beginning to emerge."

Ibime:

Why do you like repeating yourself like a broken clock? I am noticing a trend when any Sanusi-hater is challenged with facts on here, they go and produce another accusation instead of backing their initial argument. Since only one man called Sanusi is responsible for 100 different crimes against the financial system, I can only assume that irrational hatred is driving all these spurious allegations. I am still waiting for you to tell me how I should categorise Ben Bernanke vis-a-vis credit tightening in the US. . . or even addres any of the other points raised.

Having already established a credit tightening in the Nigerian economy (and world economy) as a whole, what credit should I give you for pulling out quotes from different subsectors of the economy? Whats next. . . are you going to pull out a quote from the Snail Sellers Association of Nigeria telling us they have malaria because they have been in the sunshine too long?

Now you want us to take economic advice from someone who wants us to believe that he "can build a house in 2 days". . . . he must be talking about zinc house. . . cos I dont even think a foundation will set in 2 days.

Next time you wanna educate us, please produce a link like this. . . http://www.businessdayonline.com/index.php?option=com_content&view=article&id=9991:getting-to-grips-with-nigeria-gdp-&catid=117:news&Itemid=349. . . not all these comments from the economic equivalent of Alaba market traders.
And BTW, since you believe IMF backing of reforms is too long ago, I wonder what you have to say about Okonjo-Iwealas backing just two weeks ago. . . . or many of the other comments by seasoned observers and international investors and analysts, none of which I deem worthy to provide for you as often as you provide quotes from Alaba market traders.

mikeansy:

For those who think economics should begin and end with all IMF agrees with see example of how IMF largely backs US agenda first before anything else. At a time the US is bitterly protesting the value of Chinese currency which gives them export advantages  see IMF's proposition to China.

Will the Chinese reserve Bank listen to IMF first before what they think will further their economic interests? Sanusi is not experienced enough to know when not to agree with his economics textbooks. Too much emphasis on risk management in an economy like ours is stiffling growth.

I can see you like speaking english for the sake of it. A real estate professional has said that investors in the real estate sector are unable to get Bank support to do Business and you are asking what is anti growth? (see report about REDAN above)

The contraction in credit to the private sector is as a result of banks rebuilding their balance sheet which was severely damaged during the faux boom of the Soludo era. Because the contraction followed Sanusi's actions, people automatically assume that he is responsible for it. I guess it's the kind of reasoning that led people to associate sunshine with malaria.

oyb:

talking about china? ibru and co would have faced firing squad long since

mbulela:

Why is Gusau making noise in public?
He should get SLS sacked and coopt the reserve bank governorship duties into his NSA duties.
silly,sick old men.
In his books, you only catch a thief when and if he is a pioneer and a monopolist thief.
since Ibru and Akingbola are not the only thieves,lets leave them until we can catch all of them at the same time?
All these simplistic silly comments of persons who think slaying SLS in public is a fun sport is mind baffling.

I am no fan of SLS but if anyone thinks that the removal of Ibru et al is a the reason for any percieved economic problem, the person needs the person must have built a house on sand cos this foundation ain't all that at all.

Gusau should remain in the background where he remains 'most effective' and if he wants to be seen as been relevant by the common man,he should use his security skills to address the criminality masqurading as militancy in the ND and the grwoing trend of terrorism in the country.
He should stop exposing his biased and unschooled mind on issues that do not border on seedy security matters.

If these banks are this bad, why is the CBN trying to sell them, why have they lined up a bevy of willing buyers for banks that are supposedly dead? Shareholders will not allow the CBN to take over what the CBN did not set up. The CBN’s role is to regulate banks, not to manage banks and definitely not to sell banks it does not own.