There's nothing wrong with islamic banking and any nation could practice multiple banking systems if  it wants. But they shouldn't be resposible for setting up and running these banks. Islamic or not !
Whichever thrives and succeeds will be the dominant banking system. This should be based on natural market forces.
There nothing wrong with Islamic banking as far as im concerned. But I doubt its success in Nigeria. Because the area where this form of banking will be attracrtive to, have nothing to help any form of banking thrive.
And I dont see many muslims in Nigeria coming foward  to set it up. This was eveident during the consolidation exercise.
But anyone thinks that the Banks should be set up and ran/ supported by CBN/Government, as (I may be wrong I once heard that these banks dont make profits ) then you need to have you head checked !
I now understand why people in the south might be apprehensive about some policies.
People should be allowed to do whatever they want as far as it does not affect others and it doesn't smirk of undue advantage at the expense of others.
Who cares about islamic Banking !
Where was  Islamic Banking when the Anglo-Saxon system dominated world banking systems including in Islamic countries!

Well yes , there's nothing wrong with islamic banking and any nation could practicemultiple banking systems if  it wants. But they should't be resposible for setting up and running these banks. Islamic or not.
Whichever thrives and succeeds will be the dominant banking system. This is all based on natural market forces.
There nothing wrong with Islamic banking as far as im concerned. But I doubt its success in Nigeria. Because the area where this form of banking will be attracrtive to have nothing to help any form of banking thrive. And I dont see many muslims in Nigeria coming foward to set it up. This was eveident during the consolidation exercise.
But if you think that the Banks should be set up and ran/ supported by CBN/Government, as (I may be wrong I once heard that these banks dont make profits ) then you need to have you head checked !
I now understand why people in the south might be apprehensive about some policies. People should be allowed to do whatever they want as far as it does not affect others and it doesn't smirk of undue advantage at the expense of others.
Who cares about islamic Banking !
Where was it when the Anglo-Saxon dominated world banking systems including in Islamic countries!

Dis Guy:

exactly, the same way UK and some other countries already printing money during the recesssion and implementing islamic banking!

So the UK banking system is now turning Islamic in your view ? Nice one, keep it up one day you'll make it to the top at CBN, NNPC or NEPA.

This guy printed billions and spend on banks just like that. Not thinking of Inflation and other effects. You see the mediocritic levels our CBN have descended to !
This guy is now looking more like an imbercile !
Well I've pulled out all my investments including stocks and deposits from that economy. It will take a generation 2 go back in there.
Now I am one of those who now believe that there is no hope for Nigeria.

adigun101:

The first result of Sanusi's tenure is "Standard & Poors (“S&P”) recent downgrade of Nigeria’s BB- foreign currency and BB local currency long-term sovereign ratings to B+ with a stable outlook, where they cited fiscal flexibility constraints".  For all his activities just keep your eyes on the results and effects  before anyone passes passes judgement. 
And let no one say that the rating is irrelevant.

Don't believe the excuses they are using to justify the downgrade (Oill prices, ND crisis, Foreign reserve depletion etc )because, as Sanusi rightly pointed out, these situations have been around for a while now and are even improving. Looking at the timing of the downgrade, S&P have given Nigeria a damning assessment of Sanusi's actions !

http://www.vanguardngr.com/2009/08/30/16-bank-executives-for-trial-tomorrow/

"And as the effects of the clampdown on the banks by the Central Bank (CBN) begin to manifest, the governor of the apex bank, Mallam Sanusi Lamido may have commenced, with his London trip, the battle to save the nation’s economy from the backlash." 

He has also been said to have planned to approach S&P to explain Nigerias downgrade.

Sounds like he is now trying to save Nigeria from himself.
As the effects of Sanusi's erratic, draconian and (if in good fate) inexperienced, not well thought out actions start to trickle in, I will keep you posted.

The first result of Sanusi's tenure is "Standard & Poors (“S&P”) recent downgrade of Nigeria’s BB- foreign currency and BB local currency long-term sovereign ratings to B+ with a stable outlook, where they cited fiscal flexibility constraints".  For all his activities just keep your eyes on the results and effects  before anyone passes passes judgement. 
And let no one say that the rating is irrelevant.

There is no need to go on commenting on this issue. But remember one thing "The Markets is always Right". When the effects start coming in, we might start blaming everything from NEPA to Oil prices.
Even though the excuse of the bank bailout and dwidling oil prices were used to justify Nigerias degrading by S & P they have always been there as sanusi rightly observed.
Sanusi should be smart enough to know that the rating is released as pointer to the level of confidence in an economy and as a guide to how risky acquiring assets and investing in an economy/company or government is. Sanusi should not wait for them to spell it out to him that the downgrade was as a result of dent in confidence he has created. Not to talk of the coincidence in timing. He is beginning to look absurd and laughable going to ask for clarification

naijatoday:

What does regulation have to do with running banks in the statement you made and I replied too. What are the various other options? Give them time to recover the debt? They had that since October.

Now you are cooking your facts. They had since october to recapitalise and where audited in may. 

Allow them to recapitalize? Can the NSE at this time be able to recapitalize all the 5 banks. Are there enough investors in the capital market that are Nigerians? will it not be the same shareholders borrowing money from other Nigerian banks and buying all the shares.

Well there are various options on recapitalising aside the NSE. You can let the bank source for their funds even from arab, american or far east investors(Barclays & Citigroup), they can sell their assets. Even the government can offer buy these margin loans and then go ahead and hound the debtors like they are doing now. They can then indirectly push for the change of these failed bank executives but that is no solution to a problem that already exists. There were bailouts all over the world without someone going to the press to cast details of the dire picture of the banking sector.

As for the Independence of Nigeria banking sector, there is a limit to independence a bank in any part of the world should enjoy, maybe if the U.S and U.K were paying more attention, they will not have created banks and insurance company that is too big to fail. I think the days banks enjoy too much Independence are over, even the U.S is calling for tougher regulation.

Now, tell me what has changed, you have just carried away by all those screaming for the head of bank executives during the credit crunch. The bonus culture is back, high stake risks are still being taken, with the govermnents seemingly backing this activities in the background. You need to understand the complex intricacies of the governments and their economies. sanusi just did not have the experience in this regard.

Barclay's and HSBC were not in a really bad shape compared to RBS and Lloyds. And as for Barclays, was it not the Arabs through ICPC owned by the Adu Dhabi royal family that helped the bank? They injected about $2.03.5bn into the bank and sold their shares a few months back making around $1.22bn back in profit.

Even though Barclays raised far more than that amount, but you're right that was one of the sources. Their sources is not in question but their perception of independence (of which barclays paid a huge price) which results in confidence is what i'm driving at. I am only driving at the fact that those banks bailed out were not forced and taken over. The Mds of the bailed out banks were evntually let go but not in a blanket manner.

Is it not some Nigerian people that are crying foul against foreign (arab) investors?

what does that matter. Some Nigerians will cry against anything. But far less Nigerians will cry out if the Arab investors are sourced out by the bank itself. You can now see one of the drawbacks when the CBN goes around doing certain things. It will be threated with suspicion and thats not only in Nigeria.

naijatoday:

Someone having the largest share does not mean it owns the bank alone. That is why you must have independent non-executives who are not representing shareholders on the board. It is a publicly traded company, just because you are the majority does not mean you run it anyhow especially when it is a bank and you collect a license from the CBN to collect peoples deposit to run your company. Banks are systematically important to an economy that is why a regulator must be there to regulate them.

And for your second statement thank you for stating that. While foreign banks were taking their loss as far back as October and moving on our own banks who admit to exposure to a capital market that crashed, oil price that dropped and real estate people cannot afford to buy, they kept lying and cooking their books claiming profit with the help of the central bank governor, even though there were already signs as far back as October when the EDW window was open, that all is not well. If Soludo had made this banks declare their exposure and move on, will be joining the banks in the rest of the world to be recovering.

It seems you don't get the difference between regulation and running banks. What the CBN is doing now is running the banks. Which is not a core function of the CBN and ethically not healthy banking in a free market economy. I am only saying that the CBN should have resorted to such an extreme measure only after exhausting various other options. This is not the first time in the history of banking that such a situation has been experienced. You don't just seize banks or companies out of the blues and dictate their destiny. this would send negative vibes to prospective investors who will doubt the credibility and independence of Nigerias banking sector and corporate sector as a whole.
Go and check out the performance of RBS and Lloyds HBOs shares which opted for government funds and have been part nationalised. As against that of Barclays and HSBC who self-capitalised by sourcing for funds independently (even at a higher interest rates and hence higher liabilities) outside the government funds. The global markets of which Nigeria is a part of, frowns at any perception of heavy regulation and government involvement. Mind you the said banks opted for these funds and weren't forced by the government. And this they did as a last resort.

naijatoday:

The executives do not own the bank. It is owned by the shareholders, the executive could also be a shareholder. And shareholder changes, today it could be owned by a yoruba, Hausa or Igbo person who buy shares from the Stock exchange and next week it could be sold to a foreigner or foreign institution and the next week they sell it to someone else.

They are not private banks, they are listed on the stock exchange.

By executives , I mean the board of directors who weild boardroom powers and represent the shareholders interests by virtue of their majority stakes in the banks.
The Investor market is opening up after the credit crunch with increase in cash flows to equity markets like Nigerias. With sanusis actions, he has dented Nigerias chances of some recovery and eventual gains.

biina:

Wrong analogy. You make it sound like CBN sat down in their office, smacked their buttocks and decided to just sack the executives. No, the 5 banks attracted the attention of the CBN by their activities in the EDW. The audit was carried out (with the cooperation of the bank staff) to ascertain the true state of things. Now you expect the CBN to sit down with the executives that have been found guilty of sharp practices to defend what? Even though the banks themselves have not come out to dispute the figures published by the CBN. You seem to be mistaking the bank for the executives.

You cannot do and undo something you dont own. The executives own the bank CBN regulates.

Nobody is above the judiciary in judiciary matters! For example, the appointment and replacement of ministers is not a judiciary matter.
CBN sacking of the executive was done within its jurisdiction. It does not need court approval.
You can go to court to question if the CBN acted within its power, but you cannot question the sacking itself.

Interpretations on whether the bank acted within its limits cannot be determined by the CBN alone. The CBN had to evoke BOFIA , which is an act.
which is open to interpretation by the courts as you aknowledged. What is the difference ?. When one manages to prove in the court of law that the CBN did not act within its limits he has proven that his sack was illegal. The BOFIA act stipulates conditions under which the CBN can intervene in a bank. And that is what the CBN used in this case . Dont make it look like they can do it anytime they want (with your minister/ presidency analogy) you are absolutely wrong !. It is the court who will now determines if the conditions/situations under BOFIA were the case.

so who pays for the exposure to other banks in the interbank market? Those banks exposure, if properly accounted, has already eroded the share holder funds. The capital input is required to bring the banks CAR upto the minimum 10% required by regulation. Else when the books are genuinely reconciled, they will be distressed and have to be liquidated. Is that your preferred alternative?

You are not saying anything new ! I had earlier on asked for the bank auditors or an external auditor to do proper bank audits. You can quote Sanusi and his CBN all you want but I do not buy an audit process that was carried out on ten banks in 2 MONTHS !

A market economy (often referred to as a free-market economy ) is an economy based on the division of labor in which the prices of goods and services are determined[b] in a free price system set by supply and demand[/b]
(Altvater, E. (1993). The Future of the Market: An Essay on the Regulation of Money and Nature After the Collapse of "Actually Existing Socialism. Verso. pp. 57.)
A free market is a term that economists use to describe a market which is free from economic intervention and regulation by government, other than protection of property rights (i.e. no regulation, no subsidization, no single monetary system, and no governmental monopolies).
Within the ideal free market, property rights are voluntarily exchanged at a price arranged solely by the mutual consent of sellers and buyers. By definition, buyers and sellers do not coerce each other, in the sense that they obtain each other's property rights without the use of physical force, threat of physical force, or fraud, nor are they coerced by a third party (such as by government via transfer payments)
(Rothbard, Murray. The Concise Encyclopedia of Economics)

And tell me where is such a market practiced, US,UK , Japan ? There is a big difference between theorotical and ideal situations. In a real and practicable free market system as practiced by Nigeria, US, Uk etc There are regulation and interventions as stipulated by law.

Because that is essentially what the banks were running. They were declaring no existent profits and taking in more money (via EDW and depositors) to fulfill existing obligations.
Tell me what is legitimate about cooking your books and declaring profits you didnt make? or was Madoff also running a legitimate business?
Reviewed by who?CBN presented their findings - have you read it?

Profits are an offset between assets and liabilities. How you value an asset and a liability is often not clear as black and white. How you determine a performing, toxic or margin loan is not that clear cut. Should we now say that the judgement of the banks should be completely dicarded for that of CBN ? That is why I ask for a fair hearing so that we hear from the other side. I have a lot of doubt for this hastily run audits.

The CBN sets the metric for insolvency, and any bank found wanting is insolvent. It is fundamentals of regulation. Or would you rather the bank be left alone to determine when they are insolvent?

May I beg to differ a little. The CBN sets and publishes the metric for insolvency but the CBN should not and does not have the monopoly in interpreting this metrics. That where the courts come in. This is not a dictatorship.

The CBN has only appointed interim management teams. I dont see the problem with sacking executives who have mismanaged depositors funds and cooked their books.

Apparently ! Throwing ur banking sector into chaos and denting customer and investor confidence even at this critical time and not having a full disclosure on how you intend to end the saga does not help the issue. Demolishing a house to fix a problem might fix cracks in the walls might fix the problem . But that sure is a wasteful and expensive approach.

Sanusi has been bold enough to clear out some of the bad eggs in the system and all he gets from Nigerian is criticism.

He has roundly applauded by analysts and most Nigerians in general. But he has been critisized for his approach which might end up creating an even bigger problem.

So you would rather he do it the old fashioned way and sweep the issue under the carpet, to save face (like the handling of the haliburton case).

Nope. he ought to take a less dracunian approach and acknowledge that he is dealing with the markets here and not a government ministry. I have asked you in the past to do a research anywhere on the internet and see if you'll find the details of AIG, RBS, meryll lynch, Bear stearns etc who owed them and who paid up. The absence of this information is to eliminate artifictial problems that might arise as a result of panic and wrong perceptions which will escalate the problem.

The international community believes that everyone in Nigeria is corrupt, and its only moves like this that can show the world that the regulatory bodies will not shy away from dealing with errant behavior.

And sanusis action has done a lot to improve our image.

<facepalm> it is just saddening the way nigerians think at times. The good guy is now being made out to be the villian.
Sanusi is criticized at the expense of the executives who have acted inappropriately.

He has enjoyed huge applause from a cross section of Nigerians.But a lot of analysts are not in  the wrong for questioning his approach to the issue. Which showed a lack of understanding of the whole issue, reckless rush, and has potentially blown the biggest hole in Nigerias coporate history. Sanusi will be remembersd as the man whose era killed Nigerias banking sector. The sector would not recover from this in 2 years.

biina:

Hear their defence? Their fair hearings were the filing they have been making to the CBN which have been discovered to be false. Again this is not a case in the court of law. The CBN is the regulatory body. The banks had their chance and showed no intention of coming out with the truth, before or after the CBN hearing. The findings of the banks should be ignored as they have been falsifying them in the past. The audit was to help the CBN find the truth, and here you suggest that they retrogress back to the lies.

I can see that you are not conversant with coporate activities as against regulators. I have experienced a small company which was invited by the HMRC in UK (regulatory body) because of irregularities which their audit process detected by them. This was due to disparities between their VAT takings (17%) , the company net income and declared profit and hence the amount of tax  paid, it also included payments made to the company which where conspicuously absent in the company books. The invitation was to the company directors and the company accountants which signed the conflicting statements. Even if you warned the company beforehand, when you come out with discoveries, there has to be a defence. This is the way things are and should be period. They must be allowed to defend allegations that has been brought about as a result of their findings. The CBN regulates but doesn't run banks there is more than a subtle difference , you need to get that into your head .

So lets say the banks' present findings are contrary to the CBN's, what would you have happen then? go to court? sorry, but is not a judiciary matter.

Sorry, but in the world I live in, no one is above the judiciary.Civil, executive or criminal every case can be thrashed out in court. Barrack Obama and Gordon Brown governments sacked the MDs of General Motors and RBS respectively only because the governments now wielded a controlling stake in those companies. They would never have or could have been able to do it if not for that.

The most important stake holders to the CBN are the depositors and the public. Shareholders are secondary and that is why when a bank fails depositors are paid off before shareholders.

that doesn't change anything the share holders still have more at stake. have seen the relative figures of depositors funds as compared to the capital base of these banks.
I think you need to do some research. The total deposits at oceanic bank (22 billion thereabout) are nowhere near the about N100 billin that was pumped in. If that was the case the CBN would have been better of just liquidating the banks and paying off depositors to the last kobo. The CBN should also consider the even more critical effects this whole reckless approach will have on  the wider economy.

Do not abuse phrases like 'free market economy'. The banking sector is not a free market, but rather under the regulation of the CBN and thus cannot be left to 'free' run.

WRONG ! Free markets don't necessarily mean the absence of regulation. Apart from the banking industry, all other sectors of the economy are under regulation. And regulation does not mean run companies or dictate to companies.

Executives in the sector have acted inappropriately, and the CBN has moved to duly remove them. Shikena.
Again the banks have not been closed down, only that their executives guilty of mismanaging depositors funds, and sharp practices have been removed. Would you rather they be left in office to continue the dastardly act until the bank goes under (even though if the audit has already revealed that they are insolvent). Its like saying we should allow a Ponzi scheme to continue, cos it hasn't failed yet?

Why bring in ponzi shemes when talking about legitimate business just so as to support your point .Why dint you talk about the numerous failed banks. I will not even comment on that.

Insolvency is determined by the CBN as they are the regulatory body. If CBN says you are insolvent, then you are insolvent.

Without questioning or review? you need to rid yourself of dictatorship mindset. Regulatory body or not the CBN owes it to explain and defend its position even to the regulated.

Again the companies have not been seized or liquidated. The CBN has fired the old board that are guilty of sharp practices, and replaced them with an interim management. Change of ownership of the bank becomes an issue if the shareholders are seen to have been complicit with the sacked executives, which is relevantr when said executives control a major stake in the company, directly or through a proxy.

True but this is one of the drawbacks in a market oriented economy. the companies are run by the executives. Would you now support the CBN to run banks instead ? sacking executives willy nilly sends out the wrong signals and are not good for the banking sector and the economy as a whole.

The complicity of the auditors would be determined as the investigation continues, but that is independent to CBNs function in supervising the sector.

By who ? The same courts which you claimed had no hand in the Issue ? When that happens, can the CBN stay away while their reports are used in the court of law? Mind you only the court has the power to prosecute not CBN not EFCC.

I commend Sanusi's motives but his approach is very haphazard, reckless and unbecoming of a CBN Governor. We haven't even talked about the negative impact that will affect other sectors outside the banking sector long into the future.

Sanusi does not seem to be aware of the implications of his actions, asking investors to come in and invest, after giving the impression that Nigerian corporate sector is riddled with corruption, uncertainties and abrupt unexplainable interventions from government at anytime.

This I predicted is due to his inadequate exposure and inexperience to macro economic factors critical to running such an office.

biina:

This is hilarious.
A bank found guilty of doctoring its books should be given time to disclose its real situation.
If the banks had any genuine intention of accurate reporting, would they have been cooking the books?
Was the audit not carried out to determine the real situation of the said banks?
or the CBN should ignore the findings of their audit and instead rely on the 'real situation' disclosed by the banks?

No one said that they should ignore their finding but that of the banks should not be ignored as well especially as a fallout of their audit. It is just like a policeman catching a criminal red-handed and saying that theres no need to charge him to court.
And then the CBN not caring  to hear out the defense of these banks. Is that a credible/civil manner to tackle the problem?

So while you admit that the Banks are beyond the MDs, yet you propose as a solution that the board simply remove the MD? All the while depositors funds are continuously being mismanaged.

You seem to forget that the board of directors and shareholders have a bigger stake in this whole issue. And I proposed this as a one of the possible steps that could have been exhausted before a careless and reckless actions of sacking MDs from the central bank. Where do you think you are! This is a free market economy. Moreover this is not NNPC or Nitel. Nigerians should be more responsible when it comes to coporate practice and due process in their actions especially when it is coming from government.

Given the dire situation of said banks, Sanusi was lenient in not withdrawing their licenses and closing them down.
The CBN and the Bank in question, as they are in the best position to determine if a bank is insolvent. The NBA president has no idea of what he is talking about, and has to rely on second hand information like the rest of us. This is not a court case. The CBN is carrying out its supervisory role and thus there is no issue of fair hearing.

I can see you are very inconversant with the coporate world. Throughout history companies fail as a result of not being able to meet the financial obligations of their creditors and investors. The banks still have the option of raising funds independently which havent even been exhausted. The CBN cannot just seize their licences just because they determined that they are insolvent especially if the MDs and board of directors dont agree. This is not dictatorship my friend, this is an open market economy. Mind you close to insolvency as determined by one party does not exacly mean insolvency especially to the affected party.

The CBN have carried out their audit and published evidence of their findings. The CBN does not have jurisdiction over the auditors. The banks and their auditors, have not come out with any evidence in support of their innocence, and yet you want us to worry about a possible contradiction in court?

But the auditors have a legal liability to the banks. If evidence of missappriopriations are found, and the auditing firms found guilty of being complicit, the CBN has the power to at least initiate proceedings against them and invite them for clarification. You cannot sieze or liquidate a company without the involvement the companies auditors/ accountants. Go and find out !

biina:

What would have been your proposed manner of approach that would have yielded better results? To let them continue in office?

You dont get it. The banks are not jus about their MDs.
THE BANKS should've been given time to disclose their real situations and remedy the  situations with the backing of the CBN on errant debtors.
If the bank where still found wanting by way of being isolvent or non-performing, the CBN would have been advised the boards of the Banks to remove the MDs. ,
There are many other ways in which this can be done. Just carry out a detailed analysis of banking and coporate sector interventions in history none would match the reckless haste at which Sanusi has gone about it.

I posted a link to the CBN address to help inform others, and to counter the article posted earlier in which the NBA president erroneously claimed that none of the banks was insolvent.

Who do you think is right. The CBN, NBA president, bank auditors or you. You see this is what happens when there is no proper hearing from all parties involved. This is why fair hearing is very important else there is no credibility to his press releases. Even you know that there questions when the CBN tells you it audited 10 BANKS IN 2 MONTHS ! And then starts admitting to some mistakes afterwards.

I have not seen contradicting evidence from the banks executives and/or their auditors. If you have such, please post.
The CBN has posted their findings (which is not limited to the debtors list) that necessitated their actions. Anyone (sacked executives, shareholders, auditors etc) arguing otherwise should present evidence in support of their counter argument, and not just quoted denials in the newspapers.

I haven't, but i think it should be sought after by guess who. You got it right the CBN! And if they were complicit in the cover up, they should be liable as well. Because the courts will eventually ask for these documents. It will be a huge embarassment if these auditors start contradicting the CBN and IN COURT.

biina:

Please check the facts before posting irrelevancies. Do you know the level of exposure of said banks? The only reason they were looking healthy was because they were doctoring their books.
So if you caught someone mismanaging funds, you would rather we let them go back to mismanging said funds, in the hope that they will sin no more?

I dont have issues with the motives. But the manner of approach. You dont fix a house by burning it down. Causing widespread panic and denting banking confidence. As a policy maker one should know how to handle the markets. You are not running a government or a ministry here. This has to do with the wider economy where perception leads to confidence and confidence leads to economic activities and growth.
I would not blame your likes if you do not understand where im getting at.
And stop posting what Sanusi said. We need to hear from the board of these banks as well as their auditors. Many of which are of international repute.

Has anyone read this reported in vanguard. I have always been of the view that here is nothing to this than a genuine attempt to prune the banking sector of various ills even though , I dont agree it was done in the best manner.
This was reported in guardian way back in March 2009
http://www.vanguardngr.com/2009/08/26/group-plots-takeover-of-five-top-banks/

While I would say I approve of his motives, I definitely do not approve of his actions. I have got a few questions to this regard.
1. Sanusi's objective as he claims are by all accounts needed and commendable.
2. The manner he has gone about it to me have by all accounts been reckless, haphazard and destructive.
3. Where there other less damaging ways to deal with this issue apart from how he's gone about it ?
4. What were the true situation of the banks , were there insolvent ?
5. Are the actions of the bank MDs and their deptors criminal ? So much so to call in the EFCC and call for prosecution ?
6. Has he got enough evidence to prove allegations of fraud against the bank MDs and their debtors as this is the only way they can and should ever be prosecuted as criminals ?
7. Has he considered the Long term damages to Nigerian Economy and stock market and confidence in the banking sector, including investor confidence ?
8. Did banks like RBS, Nothern Rock, Citigroup, Bear Sterns, Merryl linch, lehman brothers,AIG etc have their executives charged or thrown in jail.
9. Will anyone agree with me that most of the bailouts done by western economies where done after approval from the legislature, with little or no details/disclosures about the liabilities   and toxic debts of these banks. Was there ever a name and shame campaign ?
10. None of these banks claimed insolvency, would it have killed sanusi to give them time and backing in recovering their non performing loans.
11. A loan is a contract between a lender and borrower. The terms of this contract are varied and complex. Including conditions for defaulting. How does the CBN arrive at a not performing loan ?

Well after what a certain analyst at described as a "Bull in a China Shop" action by Sanusi. I guess we haven't got any choice but to sit back and watch events unfold.
I predict that is going to be long. Suits and counter suits  against the CBN, EFCC and banks. An impasse that would last and would stunt the growth of our financial sector and possibly spread to other areas of our corporate sector. We will not notice it now, but just imagine you are a foreign investor possed with investing in Nigeria.

Well I predicted this. Sanusi is a man with strong personal qualities/ character/ethics. He has shown this for the world to see by going head on to enforce ethics in the banking sector.
Sanusi is also a man with relative little/insufficient experience and exposure as he is apparently clueless with little knowledge on the legal and macro-economic issues that lurk behind.
I am only warning but only time would tell.

My heart bleeds !

El rufai, Ribadu and co were interogated by authorities when yar'adua came to power. Why the waste of time. Invite Soludo for questioning. Even while I will not question soludo s performance, I think he should be invited for questioning that is if he really has any questions to answer.
What baffles me most is how Okonjo, Soludo and Ezekwesili, people who worked in the then economic team have kept mum having left their posts. Someone should start talking and fast. The truth is that apart from people I consider ignorant and unknowledgeable, no influential person from the public or private domain have been calling for this. I wish they do and this includes sanusi, yar'adua, and EFCC. How come that apart from this platform, I haven't heard calls to that effect. What are they waiting for. Afterall it has been done in the past while the man was still head of the Apex bank.

While I think that Soludo should be questioned if need be, But you've got the bank MDs, the bank debtors, and as been emerging of late, the Federal and state governments ( which if you are conversant enough, posses the ugly habit of owing private businesses without recourse) which is a huge factor in most of these debts. Last time I checked the FG was connected to 40% of these debts.
Be patient my friend, a lot of light still needs to be shed before bringing Soludo into it.
By the way I want to hear from you personally if you find any of the events in the Nigerian banking sector as unusual.
I think this has been an will still be the general practice for years to come.
A bank is not a public institution like NNPC, Nitel etc A bank is a private company which engages in various levels of risks as far as it is deemed as acceptable by the board of directors.
I want to know if you are educated enough on the issues you and a lot of seemingly ignorant people are talking about.

And so what ? Is it a crime to be rich ? Did they steal from Nigeria's coffers ? People like the IBRUs including the so called sacked bank MDs are the good eggs in Nigeria. Having worked their way to the top. Have you ever thought of how much employment oppurtunities the Ibrus has provided the economy. SERIOUSLY, WHAT IS YOUR POINT !

To attribute the problems in soludos consolidated banks as a failure has some flaws which I will want to highlight.
1. Soludo on no occassion guaranteed the elimination of problems from the backing sector with banking consolidation but aimed at reducing these problems by making the banks more resilient. Did he fail in this aim?

2. Soludo reported to the presidency earlier this year that while there were presently problems with various banks as a result of problems in the underlying Nigerian/global Economy they did not pose any serious problems in  to the wider economy. Can you then say that he did not identify these problems?

3. The only difference between soludo and sanusi is that he sought to go about fixing these problems different manner. He secretly and assessed banks,  shook up the management of these banks as in the cases of WEMA,and spring banks, managed the acquisition of weaker banks by stronger performing banks, Under Soludo, the CBN gave Oceanic bank N80 billion; Intercontinental bank, N72 billion; Skye Bank, N60 billion; and FinBank, N40 billion to stem the possible failure of these banks. Is that not what sanusi is doing at the moment ?

3. Problems with the global banking institution has been a trend for a couple of years now, did you think Nigeria would remain insulated from this?

4. Do you think its a good idea for a CBN governor to go whistle blowing crashing the Naira and the stock market and denting investor confidence  (which has taken years to build and might take years to recover )in our banking sector?

5. Does all this take away the fact that under soludo, Nigerias banking sector grew from a sub-saharan share of 16% to 48 %?

6. Will you judge soludo or sanusi based on their different management approaches or based on the advancements made by the banking sector?

7. Can you mention any other areas of the Nigerian economy in which these banks operate that can be said to be faring anywhere near as well as the banking sector ?

I am so happy we still have people like @volunteer around.

Fine, but if only a little attention will be given to the Lagos - Shagamu - Ore- Benin Road. This is the most economically important and strategic road by far in Nigeria. It links the major economic blocks in nigeria. This road at present has been unusable for years. Sometimes I wonder what our leaders are smoking. This is an express way that will impact nigeria most !

between power supply and corruption. Power supply will empower Nigerians, provide employment and boost the economy instantly. Corruption eradication will then ensure the that we have credible individuals in public positions will in turn move the nation foward. I believe that with this two issues sorted, Nigeria will experience exponetial changes in many areas.

Sunny_bobo:

@ generalzango

Can you recognize the following pictures?

LOL! LOL! LOL! O boy na you find trouble. We should direct all this energy at our common enemies and ills in our society instead of antagonising each other.

Well, Well, Well I never knew that the position of the CBN Governor was zoned. Do you guys think this should be the case? Should the governor of our reserve bank be politicised ? By asking this question, it now seems that there is a possibility that the best man has not been chosen for the Job. Though am not saying that this is the case.

Well if I may add they should have gotten someone better than Soludo. But that will be very hard east,west, north or south.

Im not here to talk of the merits of demerits of a war that took place more than 40 yrs ago. But to establish a truths and myths that seem to be perpertuated after the war, especially as it affects the issues of Militancy in the Niger Delta south south.
The leader of the 1966 coup is a Niger deltan south-southerner, his name is Chukwuma Kaduna Nzeogwu, The second in command to the biafran army was a Niger deltan south-southerner, Effiong

LIE !
The Biafran war is a todays, Igbo south-eastern affair.

Truth
The Biafran war was a todays Igbo/Niger-Delta/South-south affair.

Let us forget the lies being perpertuated around because everyone tried to jump ship when the going got tough. Something even Zik did, even though as at the time he was the formost and respected Igbo politician but unfortunately for the Igbos, and unlike for others, someone had to be the scape-goat.

Im not engaging in this discussion for nothing but to hope that Niger deltans south-southerners learn from their past mistakes and not make the same this time around. Your distractors have always and will continue prying on your disunity an non- articulate stands on issues.

You cannot claim to know where you are going to if you do not know where you are coming from !

Back to the topic at hand. Where do Niger Deltans, to be exact south-south  lie in the Biafran issue. Sources have confirmed that the leader of the 1966 coup which led to the biafran war is from present day Delta State which as at then was not even part of the eastern region although Igbo speaking.

This adds a new twist to the myths about Biafran war being a purely eatern affair and possibly anti- Niger Delta South - south and an Oil war.

NB: I am really confused and find it hard to differentiate between Igbo ,South-south and Niger Delta. There are notable intersections that make it kinda complex !

Watching the political events of late, there seems to be a brewing confrontation between the northern backed government of president Umaru Musa Yar'adua with what he sees as his southern political adversaries.
This all started with the protest by south-south governors threatening to pull out of the controversial "amnesty for militants" citing the alleged anti-south south stance by the federal government on the Petroleum bill and the relocation of  the petroleum university from PTI Effurun to kaduna.
From all indications, president Umaru Musa Yar,adua has hit back by directing the aggrieved governors to take their case to the federal house of assembly.
He has also chosen this period to pick on a fight with Lagos State Government over the prolonged issue on the creation of 37 Local Government Development Areas (LCDA) in the state. 
   Yar,adua seems to have upgraded the his alleged anti south-south stance to an anti-south. Gov Fashola of lagos state have questioned the president's motives having not shown any condolences to the people of Lagos state after the Atlas Cove debacle.

   Many have come to view the stance of this government as anti-south and at this point there seem to be a potentially huge confrontation between the federal government and  his southern counterparts.

http://www.vanguardngr.com/2009/07/27/oil-bill-s-south-govs-storm-abuja-say-no-going-back/

http://www.ngrguardiannews.com/news/article01//indexn2_html?pdate=260709&ptitle=Revert%20To%2020%20Councils%20Or%20Face%20Sanctions

http://www.thisdayonline.com/nview.php?id=149877

It is unfurtunate that this guys philosophy has so paled in Nigeria. Most Nigerians only know him as Zik of Africa without knowing what he stood for. Even his tribesmen the Igbos have so far rejected him for not protecting their tribal, personal, selfish Interests well enough at the detriment of others. While the Yoruba have hailed Awo for being exactly the opposite.

This country is experiencing a crisis of Identity and structure which is threatening to rock our very foundations and existence. This I think did not occur today but sometime at the start when Nigeria refused to rally around the very philosophy that brought Independence in the first place.