FG worries over CBN reforms…laments effect on economy
National News Apr 30, 2010

By Charles Kumolu

THE Federal Government appears to be worried over the reforms introduced by  Governor of the Central Bank of Nigeria, CBN,  Sanusi Lamido Sanusi, as Presidency sources said the reforms have had devastating effects on the economy.

A source in the Presidency, told Vanguard that the Acting President, Dr Goodluck Jonathan has continued to receive reports indicating that the policy introduced by Sanusi is strangling Nigerian banks and in effect devastating the nation’s economy.

Apart from about 23, 000 workers who are said to have lost their jobs in the banks since October last year, Nigerian investors, importers and manufacturers are said to be suffering because banks are no longer granting loans and other facilities that would help them carry on with their businesses.

Although government is said to be aware as well as worried over these developments in the past few months, latest report which shows that core investors in the Nigerian economy are now seeking for loans from foreign banks and other financial bodies was said to be responsible for government’s desperation to find a quick solution to the problem created by the CBN Governor.

Government is said to be considering the option of sacking Sanusi as a way to restore confidence in the system and has started making consultations with the National Assembly leadership on how to carry out the plan.

One of the companies that has been hardly hit by the Sanusi’s reforms is Dangote Group which may be considered the highest single private employer of labour in the country.

Dangote is said to have  approached Standard Bank of South Africa for a loan of US$350million to enable it attend to pressing financial needs, an action which was said to have made Acting President, Goodluck Jonathan comfortable.

Following the approach of Sanusi, who also got the Economic and Financial Crimes Commission, EFCC, to begin to harass and even threaten to arrest companies and individuals who obtained facilities from banks, Dangote Group was said to have been forced to hurriedly source for US$1.27billion which it used to settle loans it took from a consortium of 10 banks in Nigeria, even though the loans were supposed to be due for repayment by 2015.

After making such huge payment that was not envisaged, Dangote Group is said to be facing some financial challenges in its determination to erect cement companies in Ibese, Ogun State and Senegal as well as its expansion drive and prosecution of on- going projects at Obajana Cement Company.

The publications made by the CBN last year of companies and individuals that are indebted to Nigeria banks and the ways the matter was dramatised had made the Dangote Group to source for the loan to avoid public ridicule, even though CBN did not disclose that the loan was not yet due for repayment but rather listed it as unserviceable and thereby criminalising such transactions.

Apart from Dangote, many other companies are said to be seeking for facilities from banks outside the country. Another example is Eternal Oil which is said to have asked the Japanese Bond Market for a loan of N1.2billion.


http://www.vanguardngr.com/2010/04/30/fg-worries-over-cbn-reforms-laments-effect-on-economy/

yes that will be the only option before he expose all the hidden programes of the last administration.
yar adua was on his way to making nigeria a real democartic country before they brought him down.
all the need there is a follow-follow person like soludo and not an action packed snausi.

chidichris:

yes that will be the only option before he expose all the hidden programes of the last administration.
yar adua was on his way to making nigeria a real democartic country before they brought him down.
all the need there is a follow-follow person like soludo and not an action packed snausi.

Can you put out that thing you're smoking.

[size=24pt]Yes!![/size]

Sack Him!
[size=13pt]Sack Him!! [/size]
[size=15pt]Sack Him!!![/size]
[size=17pt]Sack Him!!!! [/size]
[size=20pt]Saaaaacccckkkkk Hiiiiiimmmmm!!!!!!![/size]

Yeah i agree Sanusi should be removed, and maybe Mrs. Iweala can be brought back, or someone with international experience

Somebody is actually listening. A reform that makes people to lose their jobs and makes both business men and bankers themselves wary of each other is not worth being called a reform. It is really a devastation.

Maybe, Sanusi fired the bank executives and talked down the banks so carelessly just to 'secure the depositors fund'. Now Sanusi may be fired to secure our economy. Talk about winning a battle and losing the war!

I don't know if the Vanguard is most objective source to be listening to on this one.

Sanusi talks too much for financial expert/risk analyst. Its is shameful that is d best ds country can bring forward. A regulator willing to sacrifice d economy of a whole nation for some silly vendetta

Xavier.:

Sanusi talks too much for financial expert/risk analyst. Its is shameful that is d best ds country can bring forward. A regulator willing to sacrifice d economy of a whole nation for some silly vendetta

Financial experts shouldnt talk too much

A source in the Presidency, told Vanguard that the Acting President, Dr Goodluck Jonathan has continued to receive reports indicating that the policy introduced by Sanusi is strangling Nigerian banks and in effect devastating the nation’s economy.

Apart from about 23, 000 workers who are said to have lost their jobs in the banks since October last year, Nigerian investors, importers and manufacturers are said to be suffering because banks are no longer granting loans and other facilities that would help them carry on with their businesses.

Jonathan is obviously a boy boy, one of those that get bullied in school by the bad boys at the back of the class

nobody is talking about the recession causing credit squeeze or job loss just cbn reforms as if other countries are also suffering the effect of sanusi's reforms awon iran kiron

This is the First Step FG may take in the right direction, only if it becomes a reality
Good News anyway . . /.

Where is the honour when Sanusi can not resign to save the Government the problem of going through NASS.

This is what they say, the so called idealists are unable to live by their own rules when the clock is reversed.

Home  News  Sanusi vows to resign if decisions were fundamentally wrong
Sanusi vows to resign if decisions were fundamentally wrong
Wednesday, 02 September 2009 01:20 Anonymous    .User Rating: / 4
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Lamido Sanusi, governor, Central Bank of Nigeria (CBN), Tuesday vowed he will resign his appointment if his recent actions taken to salvage the banking industry were found to be fundamentally faulty.
But Sanusi accepted that there could be minor errors in the process which has attracted wide criticisms as well as commendation but insisted that
Lamido Sanusi
the decisions of the apex bank were necessary for the Nigerian financial system and the economy in general.
Sanusi, who has been summoned to appear before the House of Representatives this morning, disclosed this while responding to questions from journalists after the 210th meeting of the Monetary Policy Committee of the CBN during which decision were also taken to retain the Monetary Policy Rate at six percent and maintain interest rate corridor at +/_ 2 percent around the MPR.
Also at the meeting, an Approval-In-Principle was endorsed for the establishment of an “Asset Purchase Facility Fund” that would undertake to buy over the debts of these banks and chase these debts for an interest.
Sanusi said the CBN and the Ministry of Finance jointly considered the modalities for setting up the APF Fund for effective liquidity injection and credit easing targeted at specific areas of the economy.
“Now, we are human beings, are we above making mistakes? No! If there was a mistake and a fundamental error as a governor of CBN, I will take personal responsibility and I have to resign, I will resign but I have no doubt in my mind that if I look at a bank and see that that the bank is heading towards failure, I have the responsibility of the Nigerian people to take whatever action I consider appropriate.Â

Hahahah! brother Soludo being vindicated?

My own is that Sanusi should go on exile as he promised almost two month ago. He said he would go on exile if Jonathan did not support him, so make e go sharp sharp. At least our population go reduce.

Lamido Sanusi, governor, Central Bank of Nigeria (CBN), Tuesday vowed he will resign his appointment if his recent actions taken to salvage the banking industry were found to be fundamentally faulty.

so is there any proof his actions are fundamentally wrong?

abi oh!!!!!!!

He said he will go on exile if Jonathan does not support him.

It is time to walk the walk after talking the talk

https://www.nairaland.com/nigeria/topic-397582.0.html

[size=18pt]Sanusi: I may go on exile if. . .[/size]

Saturday, 13 February 2010 00:00 Nigerian Compass

Apparently expressing fears that Acting President Goodluck Jonathan may not support his reforms, the Governor of the Central Bank Nigeria (CBN), Mallam Sanusi Lamido Sanusi has declared that he may go on exile.

Indications are rife that his reforms, considered by many as harsh may have hit the rocks.
Sanusi made the declaration on Thursday night at the Businessday Conference where he was a special guest of honour while speaking on the theme “Banking Reforms in Nigeria: What Next After CBN Intervention”.

Sanusi, the hitherto swash-buckling CBN Governor, seems to have lost his trademark swagger.
Lamido is currently faced with the possibility of a change of tactics by Acting President Goodluck Jonathan who may not sanction the harsh measures that the CBN under him has meted out to former bank chiefs, an action that received the blessing of ailing President Umaru Musa Yar'Adua.

The CBN Governor declared that he is not afraid of embracing the option of self exile because those opposed to his reforms in the banking industry since his tenure as the Governor of the apex bank, last year were powerful and highly connected people.

“I am not afraid of going into exile because the people that I fight against through the various reforms embarked upon under my tenure as CBN Governor, are powerful elements. They are tied to the government,’ Sanusi declared.

He dismissed the claim that his reforms in the banking industry were laced with ethnic agenda, describing it as insinuation being peddled by his detractors to rubbish his good intentions.

The position being expressed by the CBN Governor over his readiness to go on exile may not be unconnected with inflammatory statements in the wake of the intervention in the 13 banks declared distressed, following audit carried out by the joint inspectors from the CBN and Nigerian Deposit Insurance Corporation (NDIC).

It was reliably gathered that the apex bank boss only took directives from President Yar’adua, without cognizance for any other principal officers in the National Executive Council.

An indication that the CBN lack respect for members of National Executive Council apart from the president was displayed during Sanusi’s visit to the stock market last year, when he told the market community that he didn't care about any opposition to his reforms, so long as he President approved of all that he was doing. He disclosed that he was taking directives only from the president and Commander in-Chief of Federal Republic.

In one of his public presentations, on efforts at sanitizing the banking industry, Sanusi declared at the Nigerian Economic Summit Group (NESG), Policy Dialogue in Lagos last year that but for the rule of law, the chief executives of the distressed banks and their debtors should be tied to the stakes and shot. Sanusi also gave the outlines of the second phase of the banking reforms.

By Segun Edwards, Babatunde Oke

Still waiting for when he will go on this exile.

No Nigerian would resign from Public Office,

kosovo:

No Nigerian would resign from Public Office,

Okonji iweala?

Since becoming Acting President Jonny boy should come out n address nigerians so we can ask him categorically what he feels about CBN reforms- he has gone out of his way to be interviewed by CNN, he should honour naija journalists too so these vanguard cabal can let us breathe

Domkat Bali? Resigned as Chief of defence staff

Wole Soyinka? Resigned as Road Safety Chairman

Ebitu Ukiwe? Resigned as number 2 to IBB

Okonjo Iweala? Resigned as Foreign Minister

Abubakar Rimi? Resigned as Governor of Kano after changing parties

Col. Abubakar Dangiwa Umar also resigned!!!!

All of these people resigned from office, why can't Sanusi ?

Sanusi is a wimp that is why he is unable to do the right thing and resign in the face of vote of no confidence. He should spare us his holy sermons. he is no good to anyone.

I'm glad that the incompetence of Sanusi is beginning to be exposed.

Its a pity that some Nigerians love evil and stolen waters; but for SANUSI - Intercontinental and Oceanic would have been buying awards and telling us how good they are when in effect they had ceased to exist. The vast silent majority of us support and pray for him. Goodluck Jonathan will be shooting himself in the foot if he sacks this man.

The day they removed Soludo and replaced him with Sanusi, I told whoever cared to listen that we were back to square one.
Frankly, it would be a good thing for the north to stop manning highly technical and intellectual positions in Nigeria. The manpower is simply not there in the north. Even if you find one of such talent, you find about 50 in the south.
Why can't Nigeria function based on merit? What did Soludo do wrong as CBN boss?
Alan Greenspan was the US Federal Reserve Chairman for many years. Bernanke is continuing in that tradition. Both of them are Jews! Why can't Nigeria hand over leadership of highly technical things to whoever is most skilled and qualified in Nigeria?
Ernest Ndukwe revolutionized cell phone industry in Nigeria. He is retiring now. I wonder who they will replace him with.
Highly technical things cannot be run on a turn by turn basis. Let the BEST handle it.

What happened to the banking Awards Vanguard Newspaper promises to organise annually ?

What really did Ernest Ndukwe do? The quality of service is still very poor and tarrifs very high.

Sanusi was one of the only decent guys in the Y'aradua administration. . . .someone had said that you cannot change the banking industry without changing the political industry of Nigeria. . .make dem do wetin dem dey do. . . . we just dey siddon look. . . . we will be back to the same thing in a few years time. . .

I don't have any doubt in my mind that if this plot succeed, most of those who are celebrating today will come back to seek for forgiveness for closing their eyes against the good work of this man. Nobody show appreciation when Ribadu was fighting corruption, when he was removed some people celebrated it and even compared him with likes of Ibori. Today, we know better, we want him back. I am very confidence that tomorrow, we will know more about the true intention of this man.

Nairalanders, na wa o! source said this, source said that. Do we thinj for one moment, SLS would have done what he did without the backing of the government? Was GEJ not part of the government? Or do we have a new government because Yaradua is sick? SLS has done well. You cannot build a solid economy on weak foundation

[size=16pt]Sanusi's Policy -Throwing the Baby out with the bath water[/size]

[size=16pt]
Soludo's Policy - Look the other way, which policy is better, surely this is a classical case of being caught between the devil and deep blue sea[/size]

KnowAll:

[size=16pt]Sanusi's Policy -Throwing the Baby out with the bath water[/size]

[size=16pt]
Soludo's Policy - Look the other way, which policy is better, surely this is a classical case of being caught between the devil and deep blue sea[/size]

You captured it perfectly. The 2 are damaging in their own ways although a lot of the criticism of Sanusi is amplified by people's inability to distinguish between the damage he has done and what he actually inherited.

Soludo was clearly lax in supervising the banks but Sanusi has been ham-fisted in sorting out the problems he inherited, thereby, making the whole process of restoring the banks to sound financial health longer and more tortuous. Still think there are many Nigerians better qualified to be CBN Governor.

Really Sanusi should go. We need someone to throw enough money around.

Even self, what is it that this anti SLS guys want? The sack of SLS or for the reforms to be discontinued? One thing people should know is that what's done is done. Things cannot go back to the way they were. They say the reform is hurting the economy; that banks are no longer giving out loans. Let's not deceive our self. There is an act (BOFIA act) guiding bank activities. So long as a bank does not go contrary to this act, no regulator can do shit. So what are you saying? ?

4 Play:

You captured it perfectly. The 2 are damaging in their own ways although a lot of the criticism of Sanusi is amplified by people's inability to distinguish between the damage he has done and what he actually inherited.

Soludo was clearly lax in supervising the banks but Sanusi has been ham-fisted in sorting out the problems he inherited, thereby, making the whole process of restoring the banks to sound financial health longer and more tortuous. Still think there are many Nigerians better qualified to be CBN Governor.

Have u considered that the so called catastrophe that Sanusi inherited was amplified?

Some banks are saying they did not even need nor used the bailout money given to them.

Pat Utomi has said several times that the crisis in Bank PHB was exagerated.