₦airaland Forum

Sanusi’s First Bank: The Man’s Hypocrisy And Double Standards

Apr 6th, 2010 By Victor Shodipo


The statement below is an excerpt from an Equity Research Report of StanbicIBTC Plc (StanbicIBTC is a leading investment firm and deeply involved in CBN’s reforms as Adviser) published in ThisDay of Sunday, March 21, 2010, page 31.


“Given First Bank of Nigeria’s exposure to the oil and gas company SeaWolf, the bank faces risks of oil price volatility and instability in the oil and gas sector. The bank’s credit exposure to the company is currently about 29% of its shareholders’ funds. The CBN has instructed the bank to reduce its exposure to 20% by 31 March 2010. The bank intends to sell down its exposure to 15% but we do not believe this is likely because of the current low risk appetite in the (banking) industry”.


In July 2007, First Bank provided SeaWolf a US$260m bridge facility for the following:


• To acquire 100% of the equity of Mosvold Jack up Ltd (a publicly traded offshore drilling company quoted on the Norway Oslo Exchange)

• To make scheduled payments for two rigs under construction (MSV 104 and MSV, renamed Oristetimeyin and Onome)

• Make down payments for the purchase of West Titania (now Delta Queen) from Seadrill and;

• Meet operational and administrative expenses.

The global economic crisis, which resulted in a huge dip in oil prices, had a negative effect on the quality of the loan and the bank had to convert some of it to equity and also extend the duration due to low cash flows from the project.
Source: Thisday, Sunday March 21, 2010.


This loan to a single company is currently 29% of FBN shareholders’ funds according to the Stanbic IBTC Plc equity report. As at September 2009, First Bank’s Shareholders funds stood at N309 billion. 29% of this comes to N89 billion. This means First Bank’s current exposure to just a single loan is N89 billion well above the 20% limit set by the CBN!


It is important to note that this loan is not performing as expected hence the bank’s initiative to convert part of the loan to equity and sell a portion.The Daily Independent Newspapers, it will be recalled on January 20, 2010, had done an extensive report on the shady dealings that went into this facility which was given when Mallam Sanusi was the Chief Risk Officer of First Bank and later supervised as its MD/CEO.


Despite the fact that this loan is of doubtful recovery, the CBN under Mallam Sanusi turned a blind eye to this facility. First Bank’s total provision was N29 billion when it should not have been less than N118 billion if the provision for SeaWolf alone is added. This loan also raises more fundamental issues.

• What sort of ‘Risk Expert’ will approve the granting of an N89 billion loan to a single company that as at the time of collecting the loan was less than a year old?

• The Company was incorporated the same year (2007) it applied and got $260 million facility from First Bank of Nigeria Plc.

• Is it not hypocrisy that the same Mallam Sanusi that recommended the approval of this loan now turns round and refers to other bank MDs’ as reckless?

• What could be more reckless than risking 29% of your shareholders’ funds on a single obligor that has no track record in its industry of operation?

• Is it not the same global economic crises that torpedoed this business that also affected the Nigerian stock market for which reason Mallam Sanusi invaded the targeted banks?

The above report clearly further reveals the hypocrisy of the Mallam Sanusi’s largely personal attacks on the removed bank Managing Directors. This is a loan that has gone totally bad or at best has entered the stage of doubtful recovery.

While CBN forced its captured banks to make full and immediate provision for all facilities of doubtful recovery on its books, Mallam Sanusi has secretly given First Bank up to 31 March 2010, to “reduce its exposure to 20% of shareholders funds.”

Clearly, what is good for Sanusi at First Bank is not good for other banks.

MR. AG PRESIDENT, NIGERIANS COUNT ON YOU TO RESTORE ECONOMIC SANITY AND PROGRESS.

SIGNED



VICTOR SHODIPO

RENAISSANCE PROFESSIONALS

victorshodipo@renaissanceprofessionals.com

Sanusi’s First Bank: The Man’s Hypocrisy And Double Standards

Apr 6th, 2010 By Victor Shodipo


The statement below is an excerpt from an Equity Research Report of StanbicIBTC Plc (StanbicIBTC is a leading investment firm and deeply involved in CBN’s reforms as Adviser) published in ThisDay of Sunday, March 21, 2010, page 31.


“Given First Bank of Nigeria’s exposure to the oil and gas company SeaWolf, the bank faces risks of oil price volatility and instability in the oil and gas sector. The bank’s credit exposure to the company is currently about 29% of its shareholders’ funds. The CBN has instructed the bank to reduce its exposure to 20% by 31 March 2010. The bank intends to sell down its exposure to 15% but we do not believe this is likely because of the current low risk appetite in the (banking) industry”.


In July 2007, First Bank provided SeaWolf a US$260m bridge facility for the following:


• To acquire 100% of the equity of Mosvold Jack up Ltd (a publicly traded offshore drilling company quoted on the Norway Oslo Exchange)

• To make scheduled payments for two rigs under construction (MSV 104 and MSV, renamed Oristetimeyin and Onome)

• Make down payments for the purchase of West Titania (now Delta Queen) from Seadrill and;

• Meet operational and administrative expenses.

The global economic crisis, which resulted in a huge dip in oil prices, had a negative effect on the quality of the loan and the bank had to convert some of it to equity and also extend the duration due to low cash flows from the project.
Source: Thisday, Sunday March 21, 2010.


This loan to a single company is currently 29% of FBN shareholders’ funds according to the Stanbic IBTC Plc equity report. As at September 2009, First Bank’s Shareholders funds stood at N309 billion. 29% of this comes to N89 billion. This means First Bank’s current exposure to just a single loan is N89 billion well above the 20% limit set by the CBN!


It is important to note that this loan is not performing as expected hence the bank’s initiative to convert part of the loan to equity and sell a portion.The Daily Independent Newspapers, it will be recalled on January 20, 2010, had done an extensive report on the shady dealings that went into this facility which was given when Mallam Sanusi was the Chief Risk Officer of First Bank and later supervised as its MD/CEO.


Despite the fact that this loan is of doubtful recovery, the CBN under Mallam Sanusi turned a blind eye to this facility. First Bank’s total provision was N29 billion when it should not have been less than N118 billion if the provision for SeaWolf alone is added. This loan also raises more fundamental issues.

• What sort of ‘Risk Expert’ will approve the granting of an N89 billion loan to a single company that as at the time of collecting the loan was less than a year old?

• The Company was incorporated the same year (2007) it applied and got $260 million facility from First Bank of Nigeria Plc.

• Is it not hypocrisy that the same Mallam Sanusi that recommended the approval of this loan now turns round and refers to other bank MDs’ as reckless?

• What could be more reckless than risking 29% of your shareholders’ funds on a single obligor that has no track record in its industry of operation?

• Is it not the same global economic crises that torpedoed this business that also affected the Nigerian stock market for which reason Mallam Sanusi invaded the targeted banks?

The above report clearly further reveals the hypocrisy of the Mallam Sanusi’s largely personal attacks on the removed bank Managing Directors. This is a loan that has gone totally bad or at best has entered the stage of doubtful recovery.

While CBN forced its captured banks to make full and immediate provision for all facilities of doubtful recovery on its books, Mallam Sanusi has secretly given First Bank up to 31 March 2010, to “reduce its exposure to 20% of shareholders funds.”

Clearly, what is good for Sanusi at First Bank is not good for other banks.

MR. AG PRESIDENT, NIGERIANS COUNT ON YOU TO RESTORE ECONOMIC SANITY AND PROGRESS.

SIGNED



VICTOR SHODIPO

RENAISSANCE PROFESSIONALS

victorshodipo@renaissanceprofessionals.com

Sanusi’s First Bank: The Man’s Hypocrisy And Double Standards

Apr 6th, 2010 By Victor Shodipo


The statement below is an excerpt from an Equity Research Report of StanbicIBTC Plc (StanbicIBTC is a leading investment firm and deeply involved in CBN’s reforms as Adviser) published in ThisDay of Sunday, March 21, 2010, page 31.


“Given First Bank of Nigeria’s exposure to the oil and gas company SeaWolf, the bank faces risks of oil price volatility and instability in the oil and gas sector. The bank’s credit exposure to the company is currently about 29% of its shareholders’ funds. The CBN has instructed the bank to reduce its exposure to 20% by 31 March 2010. The bank intends to sell down its exposure to 15% but we do not believe this is likely because of the current low risk appetite in the (banking) industry”.


In July 2007, First Bank provided SeaWolf a US$260m bridge facility for the following:


• To acquire 100% of the equity of Mosvold Jack up Ltd (a publicly traded offshore drilling company quoted on the Norway Oslo Exchange)

• To make scheduled payments for two rigs under construction (MSV 104 and MSV, renamed Oristetimeyin and Onome)

• Make down payments for the purchase of West Titania (now Delta Queen) from Seadrill and;

• Meet operational and administrative expenses.

The global economic crisis, which resulted in a huge dip in oil prices, had a negative effect on the quality of the loan and the bank had to convert some of it to equity and also extend the duration due to low cash flows from the project.
Source: Thisday, Sunday March 21, 2010.


This loan to a single company is currently 29% of FBN shareholders’ funds according to the Stanbic IBTC Plc equity report. As at September 2009, First Bank’s Shareholders funds stood at N309 billion. 29% of this comes to N89 billion. This means First Bank’s current exposure to just a single loan is N89 billion well above the 20% limit set by the CBN!


It is important to note that this loan is not performing as expected hence the bank’s initiative to convert part of the loan to equity and sell a portion.The Daily Independent Newspapers, it will be recalled on January 20, 2010, had done an extensive report on the shady dealings that went into this facility which was given when Mallam Sanusi was the Chief Risk Officer of First Bank and later supervised as its MD/CEO.


Despite the fact that this loan is of doubtful recovery, the CBN under Mallam Sanusi turned a blind eye to this facility. First Bank’s total provision was N29 billion when it should not have been less than N118 billion if the provision for SeaWolf alone is added. This loan also raises more fundamental issues.

• What sort of ‘Risk Expert’ will approve the granting of an N89 billion loan to a single company that as at the time of collecting the loan was less than a year old?

• The Company was incorporated the same year (2007) it applied and got $260 million facility from First Bank of Nigeria Plc.

• Is it not hypocrisy that the same Mallam Sanusi that recommended the approval of this loan now turns round and refers to other bank MDs’ as reckless?

• What could be more reckless than risking 29% of your shareholders’ funds on a single obligor that has no track record in its industry of operation?

• Is it not the same global economic crises that torpedoed this business that also affected the Nigerian stock market for which reason Mallam Sanusi invaded the targeted banks?

The above report clearly further reveals the hypocrisy of the Mallam Sanusi’s largely personal attacks on the removed bank Managing Directors. This is a loan that has gone totally bad or at best has entered the stage of doubtful recovery.

While CBN forced its captured banks to make full and immediate provision for all facilities of doubtful recovery on its books, Mallam Sanusi has secretly given First Bank up to 31 March 2010, to “reduce its exposure to 20% of shareholders funds.”

Clearly, what is good for Sanusi at First Bank is not good for other banks.

MR. AG PRESIDENT, NIGERIANS COUNT ON YOU TO RESTORE ECONOMIC SANITY AND PROGRESS.

SIGNED



VICTOR SHODIPO

RENAISSANCE PROFESSIONALS

victorshodipo@renaissanceprofessionals.com

My beautiful wife is one and i do not see anything wrong.

cannot see the picture.

My beautiful wife is one and i do not see anything wrong.

we are still waiting for the pictures!!!

You are so wrong!!!. you must be a Sanusi apology! the banks were all fine till the stupid Mallam created the big mess. let him go and learn from Ben Bernanke of America how to handle stress test on banks, he can also learn to talk like a CBN Governor from him, all he is an uncultured aboki.

All the people that have lost their jobs will , for that stupid Mallam.

For me Fat Girls Rock!!! i want to hug someone and not feel that i am hugging myself.

Pictures please!

Sanusi Under Fire; Accused Of Waiving Saraki’s N8.4bn Debt
December 09, 2009 15:05 (5 hours ago), 1,048 views

By Moyo Fabiyi

The Governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, has been under intense criticisms by a group known as Renaissance Professionals.

The group has accused Sanusi of using his position to waive a whopping N8.44 billion “non performing debt” allegedly owed by companies belonging to Governor Bukola Saraki of Kwara State.

In paid advertorials in some national dailies, the Renaissance Professionals claimed that Sanusi ‘planted’ Mr. Lai Alabi, ex-employee of Saraki as the Managing Director of Intercontinental Bank, to compensate his ‘godfather’ (Gov. Saraki) who supported him to get the CBN apex job.

The group also alleged that two other former employees of Saraki’s Songhai Farms, were appointed as directors in the new board of Intercontinental Bank, inaugurated by Sanusi after sacking the Dr. Eratus Akingbola-led executive in the bank. It also alleged that three companies owned by Saraki were owing Intercontinental Bank a total of N8.4 billion which were not listed in the bank’s non-performing loans; whereas a company owing the bank N200 million was listed.

The Renaissance Professionals argued that waiving the N8.4 billion debt is a subtle support for Saraki’s 2011 presidential ambition by Lamido and by extension, his appointee, Mr. Lai Alabi, the new MD of Intercontinental Bank.

The group also called to question the First Bank of Nigeria (FBN) end of the year report of March, 2009, in which the FBN said N26 billion provision for non-performing or bad debts was adequate.

The group noted: “Taking a cursory look at the former Governor of the CBN, Prof. Soludo’s report on Nigerian banks which he presented in London and South Africa in the fall of 2008 and early this year, respectively, where he maintained that Nigerian banks are strong, one is left to ask what the new definition of strong in the light of the disclosures now being made public.”

However, Saraki has denied owing Intercontinental bank N8.4 billion. A statement by the governor’s press secretary, Masud Adebimpe, described the allegation as frivolous and an attempt to smear the governor’s reputation.

According to the statement, before he commenced his tenure as governor, Saraki had resigned his appointment as director in the three companies that were referred to as debtors to Intercontinental Bank, and has not been involved in the daily running of the companies since he became governor.

http://thepmnews.com/2009/12/09/sanusi-under-fire-accused-of-waiving-saraki%E2%80%99s-n84bn-debt/comment-page-1#comment-130018

Sanusi Well Done! now more Nigerians are jobless and many more to go!

See insult! Fidelity want buy Union or Intercontinental abi na Oceanic? i no blame them na Sanusi cause em.

Hello,

no picture attached and location not mentioned.

pictures please!

what is the brand name?, categories and prices?

Na lie, them want use em pump up the price of First bank!

i am not looking at staying there, much like an investment. i just want to buy now rent out and maybe sell latter. do not ask of my budget, just give me the available properties description and prices, i will do the maths and if i see investment opportunity i will take it.

I am looking at buying, not rent.

can we have your properties and price list?

i will go with the advice of Category (m), no matter what he is the father of your child and your husband, handle him with Love and pray to God, he will surely see the light and change.

Finecat, which bank didnt even pay for the month of August?

mine is Oct 15th

Sabak

The only thing i what to ask is what has Oceanic done for it share holders, when compared to banks like GT, Firstbank and even Access during this meltdown as you said with all the paper profit?

the only way i will measure a bank is what it declares at the end of the day. and so far only GT, Firstbank and Access are rated Very strong, till others tell us what they are given there share holders.