jay bee:

TKB
I swear u don try. Remember most Nigerians ride/hump on hear-say bandwagon.
It's laughable that someone can actually bring up the automobile industry's woes during the credit crunch like Nigeria was supposed to be immune from it. Little did they know that Germany and UK had to bring in emergency policy/incentive (Customers had a trade in offer of about 2 grand for any old banger towards a brand new car) to help stabilize the industry.
Funny thing is funky is a very smart girl but she is just anti-sanusi 

texazzpete:

Of course people are reluctant to buy new cars. All the Nigerian Automobile sellers jacked up the prices of their cars astronomically, blaming it all on the new exchange rate. Instead of doing a pre- and post- Sanusi piece, why not find out how much the price of a new Honda City has moved before and after the Naira fell from 115 to 155 to a dollar (which happened under Soludo's watch). At least i know at one point the Hyundai Sonata jumped in price by nearly 400k.
It's more costly to buy a new car now, so fewer people are buying.

I have no sympathy for these car salesmen. When car manufacturers were slashing prices to sell more during the recession, they didn't pass on the savings to us. Now they are blaming Sanusi when many of their usual clients can't afford their exorbitant rates.

tkb417:

Hehehehhe
Automobile is not luxury where?
In Nigeria?
How many Nigerians can afford to buy cars by paying upfront without running to the banks for car loans?
I'm sure it would be less than 10% of the population. So how do u expect car sales to jump up when banks have closed shop?

By the way, car sales dropped in virtually all the countries in the world cos of the probs in automobile industry
So why should Nigerias case be attached to SLS?

Pls, I may be wrong but what year did SLS become d MD of FBN and what year did the stockmarket sham start? Was SLS the MD of FBN in 07/08?
Pls clarify

RoadStar:

I think having a masters in economics or any finance degree for that matter makes you over qualified to be a CBN governor.
Lets face it we do not have an exactly sophisticated economy.
All we do is sell oil and distribute the money amongst a few.

Sanusi is right afterall because I was taught in elementary school that a bank is for depositing money and that alone.
So his only function will always be to protect depositor funds.

Well done Sanusi !

RoadStar:

I think having a masters in economics or any finance degree for that matter makes you over qualified to be a CBN governor.
Lets face it we do not have an exactly sophisticated economy.
All we do is sell oil and distribute the money amongst a few.

Sanusi is right afterall because I was taught in elementary school that a bank is for depositing money and that alone.
So his only function will always be to protect depositor funds.

Well done Sanusi !

How can you have this as a valid point to butress your argument. So you are trying to say that a maybe 10% increase in the price of cars resulted in a 55% decline in the purchase of cars? That is an absurd argument. It can never hold water in economics.
Again, why is the decline coming now after Sanusi's actions? Why didn't it come in the quarter after which Soludo devalued the Naira??
These are some of the reasons I say it's hard discussing with folks that speak in confident ignorance. But then again, I respect you point, but sorry it doesn't carry weight!

Ten percent of the population is 15 million. If 15 Million can afford a product in a country as poor as Nigeria, then that product cannot in anyway be deemed to be a luxury product.
The worldwide drop in car sales as a result of the recalls did not have a single effect on Nigeria, as there were almost no recalls here. Asides, Toyota has already experienced a 24% rise in car sales in the USA in March alone. So I am not sure what on earth you mean.
Nigeria started experiencing aggravated drought in credit flow after Sanusi criminalized lending and that is what lead to the drop in sales of Automobiles.

Sanusi was ED Risk Management at the time which means that decisions taken by First Bank regarding stock market activities passed through his desk. He was very much a part of the system. He either participated in or overlooked the messiness which begs the question regarding his moral authority!
txb417, tot U worked at some investment firm! Ah, With these your points here, you are embarrassing the profession oh!

Sanusi's gut reaction is right. But it must be fine tuned. We can not spend foreign cash and open it to everyone. At some point, our ability to make foreign money will fall far short.

odedele:

d source of d news is questionable.vanguard on his own caption says 'FEC drills sanusi'.[/b]Businessday paper has always being bais toward sanusi its neva bein objective.[b]FG asking sanusi to come & xplains his unpopular reform to cabinet does not amount 2 endorsment.

jay bee:

TKB
I swear u don try. Remember most Nigerians ride/hump on hear-say bandwagon.
It's laughable that someone can actually bring up the automobile industry's woes during the credit crunch like Nigeria was supposed to be immune from it. Little did they know that Germany and UK had to bring in emergency policy/incentive (Customers had a trade in offer of about 2 grand for any old banger towards a brand new car) to help stabilize the industry.

Funny thing is funky is a very smart girl but she is just anti-sanusi  

texazzpete:

@tkb417
You're wasting your time. As long as funkybaby et al know someone who lost their job under Sanusi's tenure, their position is always going to be 99% personal/emotional and 1% logical. As Nigerians, we're used to finding someone to blame. A convenient scapegoat is needed.

No matter how many times Sanusi outlines his objectives, we'll always have hecklers out there insisting he has none.

tkb417:

if you like blame Sanusi


im sure some people will blame the govt for the fall of Lehman Brothers

so whats your point?

hehehehehe

funkybaby:

********* sighs *******
i find it amusing when people compare naija banks with foreign banks

now, what is the basis of comparism between Lehman Brothers and say Savannah Bank
For crying out loud, US and Naija are two different economics with different policies influenced by totally different factors.

tkb, what you need is a kiss from me this morning to bring you back to reality cos this your idolization of Sanusi don pass normal

tkb417:

Lemme break it down cos its difficult

As the Investment bankers in the US can be accused of the sub prime issues in the US, we can also point accusing fingers to our CEOs in Nigeria for the shady parctices that resulted in this fiasco

the 2 govts put measures and policies together to bail the economies out innit?

the resultant effects for the 2 economies is credit contraction abi no be so?

is the govt in america being blamed for the tightening of credit in the US?

can you see the logic in my comparisons?

its difficult ehn?

hehehehehe

tkb417:

hehehehehehe

i cannot see anythin o

madam trader

PapaBrowne:

How can you have this as a valid point to butress your argument. So you are trying to say that a maybe 10% increase in the price of cars resulted in a 55% decline in the purchase of cars? That is an absurd argument. It can never hold water in economics.
Again, why is the decline coming now after Sanusi's actions? Why didn't it come in the quarter after which Soludo devalued the Naira??
These are some of the reasons I say it's hard discussing with folks that speak in confident ignorance. But then again, I respect you point, but sorry it doesn't carry weight!

have you worked in your life cos
u come across as another
ignorant child
if i hold a BSC Civil Engineering,
are you saying i cannot be the
MD of a bank?
what exactly do you look for
before appointing people?
certificates or the years of
experience on the job?
SLS has always been a top level
banker who knows banking in
and out, if that doesnt means
nothing to you, then maybe you
should tell your economics
lecturer to apply for the post

@tkb .The annoying thing about ignorance is that when you see it , you know what it is, but one can only just watch it march on it's course. Do you know what economics is ? So i've been a top level manager at a bank for oink years means what ?
May be the problem has to do the misnomer "central bank", other countries know it's not only about banking so their "central banks" aren't termed as such.
That position is more of an academic appointment if anything and that's where we've missed the mark here. Aliko has built a business empire so i guess he's suited for the job too. I don't even see any reason going further.

justdtruth:

i would say that i am not surprised at the way this discussion has gone so far. when an economic issue is put in the politics section, what do we expect? emotions, sentiments, prejudice etc.

if we want to discuss the economy and not just talk about "garri and epa" then we should rather get our facts straight.

please read the attached file to understand where are coming from and where we are going in the banking sector.

just to quickly point out some things

1. the reforms that sanusi is executing are not sanusi's reform. they are soludo's reform. prof soludo had about 13 point agenda when he was the cbn governor and consolidation for instance was no 4. effective risk management, good corporate governance were all part of the agenda. they were not just implemented during the time of soludo. and to add, all the banks executives know this. in fact, do you know that before any decision is taken and the announcement made by the cbn, the issues would have been discussed at the bankers committee meeting and of course they would have agreed to all these things. that is why you will not find people from the banks or the financial sector passing comments on a number of these issues. what happens. those of us who know nothing really would be commentators.

2. there is a difference between the economy and the financial system, the cbn as a regulator and the finance ministry. the cbn is a regulator of the financial system and not the economy. to evaluate an economy, the macroeconomic objectives to look at are
a. economic growth
b. redistribution of income
c. full employment
d. price stability
e. favourable balance of payment

of all these, the only part where the cbn plays a role is price stability. cbn responsibility is to ensure price stability. so really, if the cbn would take any blame whatsoever on the economy, it should be on price stability and going by the statistics, the cbn has done well in this regard. inflation rate is now 11.8 down from 12.3. other issues should be directed at the relevant government structures. for example, for the economy to work, we need the real sector which depends on power. is it cbn that will provide the power and other infrastructures? is it cbn that will control how much importation that we do compared to exportation? common guys, lets talk to the right guys on our economy and that is the finance minister and the government as a whole.

3. people also talk about lack of confidence in the economy, the truth is that before the reforms we had no confidence in ourselves, the international financial institution had no confidence in us, even the banks were doing backstabbing on themselves to market saying this or that bank in distressed. but now what do we have? we all know that our money is safe. we know the nature of the problems of the banks. some of the banks are even back to profitability. the capital market has grown by about 30%. the international credit line is back for the banks. and i still wonder, they say sanusi has destroyed the confidence. nay! sanusi has restored the confidence.

4. please dont be fooled by what you read in some of our dailies. it would be better if the names of those papers are changed to reflect what they really are now. they are no more better that city people, encomium, spectacle etc you know, they have all become soft sell. you would read about the banks not lending to people anymore because of sanusi's reform. if they want to make sense, let them publish the figures of bank lending and to who the loans go to before the reforms and figures and to who now. i bet you, if you see the figures, you will throw eggs at any of these bankers when you see one. the truth is, they have not been lending to the real sector. not to any body that wants to do real economic business. what they have been doing is gambling with their shareholders fund. i work in a stock broking firm so i can tell you it was soooooo bad. the banks were doing handbill to advertise that people should come and borrow to buy shares. they used these funds to buy their own public offers. one stock broker alone has a debt of about 90 billion naira. imagine the number of industries that could have financed.
somebody talked about importation of cars coming down. why will it not come down, when it was the banks that were financing the purchase of these cars. if you earn about 90,000 a month you can buy a car of about 2 million. all you have to do is pay 25,000 naira every month. i am sure a lot you guys outside nigeria dont know what has been going on. they were financing buying of generators, television etc adverts were aired on tv and radio. i am sure that you would not be surprised if i tell you that they equally financed political campaigns.
the other areas they were pumping money is aviation and importation of petrol so when the meltdown happened in 2008 and oil price came down, they lost a huge chunk of there fund. a lot of bad things happened then.  

5. its really a painful one for those who lost their job. but lets put the cards on the table. do you know why the banks employed so much people in the first place? we most be frank on this one. the banks were engaging in a competition for the number of branches they have. imagine a situation where on ogudu road for instance, you will find all banks represented. now you wonder, is there so much fund in a residential area that all these banks have to be here to get a share. and check out the size of these buildings. you will wonder if these new branches can survive on their own. the crux of the matter is unhealthy competition. so when the bubble burst, each branch was mandated to work on sustaining itself. that is the ‘koko’ of the job loss in the banking sector. mind you it was not sanusi that said sack your staff. it was the decision of the banks and let me inform us that these sacks had been going on since 2008. only the large scale execution took place sometimes ago. you know what the banks do now, they employ ond holders and pay them 30- 40k even lower to get there clerical jobs done. well, they will say they are being prudent, it is unfortunate though.

its important that we all support what is good and give good advice on better ways to do it. what we should not do is castigate someone who wants to do a good job because of our sentiments particularly when we do not have the facts.

the situation in nigeria require that we always seek the facts and figures before we let some foolish thieves and criminals bamboozle us

rclbrz2211:

What more can I say? Great minds think alike they say. I'm glad other people can see in my view like the following pro-Sanusi Nairalanders:
tkb417, darqly, opokonwa, texazzpete, marvix, justdtruth

You guys posts are meaningful, logical and reasonable. Let us ignore the sick minds that see no good in Sanusi just because they or someone they know lost his/her job. Kudos to Joey and his govt.