₦airaland Forum

princekevo:
My brother, as an ethical Manager there are some information of the organisation that are not meant to be released to the public no matter how many times u are on the media. I have never seen any good management that will come to the media to create alarm that they are in a serious trouble even when it is obvious, unless the information got licked out, probably on the process seeking for refinancing or government assistance. You don't release information that creates panic in the mind of your costumers to the media. Am not against Sanusi always being in the media, but his in ability to manage or control the information he releases to the public, for me with my lil managerial experience i would give him zero In that aspect. He this is the CBN governor and answereth to no man as he said. Why all the alarm on the media while he have the independent capacity(as he said) to sanitize the industry and refinance the failed once, without even the knowledge of the legislature?

Now indeed the 5 banks were sanitized and refinanced, but they still need to win back their customers confidence, before they could regain their stand. You and i knows how how many years and what it gonna take such a sensitive organisation to regain a confidence already lost and public trust. Not even in an environment as ours.

1. The beauty of capitalism (that we want to ape), if these banks cannot win back confidence, they will be taken over, merged, consolidated (whatever term applies). Its called "creative destruction", one of the tenets of true capitalism. BUT, they will not go down with depositors funds trapped in them and no one called to account for thier mismanagement and eventual demise as had been the case in Nigeria previously.

2. Sanusi's ability or otherwise to control the sensitive information "leaked" to the public, where we agree its wrong, is, well, lamentable. But, on the balance, can we say, his head is in the right place? his actions have yielded results not all bad? and that our banking sector is the better for it? that it has yielded the greatest good, to the greatest number of Nigerians?; from where i'm standing:- Yes we can

naijaking1:
Are you for real
When Sanusi insists on being before the press everyday?

1. I dont believe Sanusi is calling news conferences daily. The news media follow Sanusi mainly becuase he sells papers. QED. He says what he has to say, and most times its interpreted by the media to suit whatever agenda (that word again) they happen to be championing at the time. And the gullible Nigerian public swallow whatever opinion is fed to them in the name of "news". Apparently, if you saw it in the newspaper, it must be true. (Brings to mind the extensive WMD coverage in America before the Iraqi invasion).

2. Its like saying Princess D (not that i'm comparing) insisted on being in the media everyday. Even dead, she's still selling papers.

princekevo:
First i concluded my post with the following statement
I would never said Sanusi cleaning exercise was wrong, but the approach to it. Am still very much convinced that there are better way he should have handled to the same cleaning exercise with less effect , which the panic and lost of confidence and lost of jobs he created in that sector. Though, from concluding statement up there i cannot judge him at the moment until after his tenure we will know his time and that of Soludo which one was better for a developing economy like Nigeria.

What am saying is that, haven't  yet seen any sign of recovery in that sector after 8months of his tenure he should shut up and do his job. You can only criticise your predecessor when you have a clear distinction in your tenure from his, not when you are in the mist of a rebound from the effects your policy created.

I still believe the Consolidation Exercise from Soludo was the best thing that happened to Nigerian banking sector. The first time i think an LC from a Nigerian Bank can be confirmed and accepted internationally. Have we thought of what the financial state of Nigeria would have been during the last global economic melt down, if not for the consolidation? Sanusi was able to point out 5 banks that was at the verge of failing, becoz someone made it more easy to do that. What if he was the CBN governor in the days of mushroom banks, how many can he rescue and how many would have survived the economic crises?

So Sanusi haven't  achieved anything yet, but faulting and not seeing the great positive effect of the exercise to Nigerian banking sector to me is as being unprofessional. I see a man who should have built from the foundation of his predecessor, amending the lapses which he think his predecessor over looked, not creating an alarm on the work of his predecessor and discredting his deeds.

1. Sanusi's drama:- is intergral to his style. If we agree its wrong, its probably a human failing. He could probably have done what he did with a lot less drama, though somehow I think people would have complained about the tactic as well.

2. Soludo's consolidation exercise WAS the best thing that had happened to the industry. Up to that point. Standards are raised to be upped, not rested on.

3. All things revert to the mean. The excesses of the bubble epoque didnt take 8 months to build up. I doubt they will be corrected in 8 months. In the mean time, we have a functioning financial sector made up of banks with verifiable assets and liabilities. And a much saner stock market.

4. If my memory serves correctly, and correct me if I'm wrong, was it not the stress tests inititiated by Sanusi on assuming office that definitely sorted out the 5 banks? I seem to remember that before then, all we had to judge on was half baked newspaper adverts, "fitch" and all sorts of shady ratings, falsified accounts, and some outright sleazy propaganda from the banks. Then again, my conclusions may have been wrong.

5. We didnt see the results of Soludo's consolidation in 8 months, lets try not to apply double standards.

6. In my opinion, this is a man building on his predecesors achievements, correcting lapses as he goes along. You may not agree with his style but u can hardly accuse him of not doing anything. (I assume thats the whole point of posting, you dont agree with his methods).

7. Sanusi did not create the alarm, the newspapers did a lovely job at that. and the public saw what they wanted to see. Let the mist clear a little. Then let's review our opinions.

8.

princekevo:
Am still very much convinced that there are better way he should have handled to the same cleaning exercise with less effect , which the panic and lost of confidence and lost of jobs he created in that sector.

And yes, there probably could have been a better alternative, but leadership is not about making a perfect decision; its about making a decision and taking action, and correcting mistakes as events unfold.

princekevo:
Only in Nigeria i can see someone will fault the foundation of a building which took years to build, demolished it within a month, and yet to lay a single block for a new foundation after 8months, but can still boldly criticise the former structure. Sanusi after 8months of his cleaning exercise, which caused a lot of panic and lost of confidence on the mind of depositor. We are yet to know what his plan is on how he is gonna rebuild, and restore the public confidence back on the sector. The same thing the Republicans are attacking obama for. After one year in office you still blame your failure on past administration. If you say u are the best and  there to make a difference after 8months we should be able to see a sign of it. Its easy for anyone to do wht he did, but recovering from the negative effect of his action is what the whole Nigerians are waiting for. That only we can judge if he is better that his predecessor or not.

1. Its a bit of overkill to say that Sanusi has demolished the structure he met on ground. Lets be objective. he may have altered it, significantly too. But to say he demolished it is a bit much. Yes, the action was abrupt and a shock to the financial system, but to categorically say that his reforms have failed after 8 months is, well, hasty. "Panic & lost confidence" happened, and is happening the world over. As far as that goes, Nigerians are in good company.

2. I do believe that the newspapers have been awash recently with the 4 basic pillars of Banking sector reform in the recent past. I think its safe to assume that's his plan for restoring confidence in the sector.

3. That he pointed out the lapses in regulation that preceeded his tenure can hardly be said to casting blame. Fact: regulation was weak in Soludo's CBN.

4. Some people may have missed it, but where exactly did Sanusi say he was the best? forgive my ignorance in the matter.

5. Its taken 20 years for the world to conclude that the bailout of the Japanese banking industry following the crash of 1987 (when the Nikkei index lost almost half its value in a single day heralding the start of a 20year + economic slump) was probably not for the best; that its probably better for bad debts on banks books to be purged in one fell swoop causing temporary pain than to draw it out for say, 20 years. Funnily, the same Western nations that pointed out to Japan that such a move was inimical to economic growth have rolled out all stops in TARP and its British and Eurozone variant.

Simply saying, 8 months is too short a time to judge conclusively that Sanusi's reforms have failed.

6. Like a wise man once said, "and this too shall pass".

naijaking1:
In logic, they say that if your premise is a fallacy, your whole arguemnt based on that false premise is also a fallacy. Nobody has been convicted of any crime as you ignorantly stated on your third point. Everybody, Ibru, Akingbola have been accused; accusation my friend does not equal conviction, except in the books of Sanusi.
Yes Sanusi alleged many finacial improprieties, but as time goes on, nobody, not even some of his most ardent supporters believe the man is totally cordinated, and for you to use his wild allegations to as a foundation of your arguemnt is an insult to our intelligence.
For you information, the CBN has a right to rule fincial mismangement, but it doesn't have the powers to convict people of crimes. No court has convicted anybody of crimes yet.

Was not making and argument my friend, i seek to convince no one. was stating a personal opinion (or a series of). If they convince, added bonus; if not, well, too bad.

be that as it may,  I may have erred when i stated criminal activity had been committed. It should have read "alleged" criminal activity. (but then again; IBB, Ibori, Abacha, and a sundry list; their crimes are "alleged" aren't they?)

As to Sanusi's not being co-ordinated, "let him who is innocent cast the first stone". He's human, we all are.

The bottomline is this

1. What was the state of the financial sector in the twilight of Soludo's tenure?
2. Given what we know today, both fact & fiction, would we rather that Sanusi had maintained the status quo?
3. At the time Soludo's consolidation was being implemented, the early phases, was the consensus general that it was the way forward?

Ps.
1. Have changed my post to read "alleged"
2.

naijaking1:
Yes Sanusi alleged many finacial improprieties, but as time goes on, nobody, not even some of his most ardent supporters believe the man is totally cordinated, and for you to use his wild allegations to as a foundation of your arguemnt is an insult to our intelligence.

"our intelligence"?. Is'nt that a bit of an encompassing generalisation?

1. The position of CBN Governor is not elective, I doubt Sanusi is on a popularity contest (though sometimes you wonder)

2. Sometimes what is right is not popular & what is popular is not right

3. Whatever Sanusi did right or wrong doesn't detract from the fact that the banking sector was in a critical state and abuses (some "allegedly" criminal & mind boggling in implication) had been committed

4. In economics, its called cycles; representing the wisdom that all things revert to the mean. The bigger the bubble, the more painful the correction that succeeds it hence the gale of job losses and severely reduced economic activity in recent times.  If we're going to embrace capitalism and its goodies, we should be ready for its downside. Sanusi or not, in a recession, there are job losses and other generally unpalatable effects.

5. behind every move in life, there is an agenda, even Jesus had one. Its not the agenda but the end result that matters. From where i'm standing, Sanusi's agenda (whatever it is) hasnt turned out too badly, side effects notwithstanding.

6. Sanusi is a human being, prone to bouts of human failing, even as CBN Governor; on the scale, I'd say Sanusi has not done too badly, ceteris paribus.

7. On the face of it, i doubt the CBN needs to seek approval of the legislature for most of its actions. (exactly why Soludo did not seek anyone's approval before announcing his restructuring of the naira campaign, bad political move though). Then again, the law might say differently, but its not likely, time elapsed considered.

Nzeribe has a right to speak his mind. Others, however, have a choice as to taking him seriously or not. As someone who flouriehes in the kind of conditions military rule creates, his advocating the return of the military is understanable.

That being said, one realises that given the conditions in our country today, a military take over is a clear and present danger. It doesnt matter (and i doubt it ever has) if the citizenery welcome it or not (usually they do).

.

Short Attn Span: If TINAPA is the yardstick by which Donald's ability to make crtical decisions on behalf of Nigeria will be based (it was afterall the single most expensive decision he took for us Cross Riverians); I'll pass. in the end "its the economy, silly". [font=Lucida Sans Unicode][font=Lucida Sans Unicode][s][size=8pt][size=8pt](Donald himself basically paraphrased this in 1999 when he was OBJ's chief debt negotiator in far away USA)[/size][/size][/s][/font][/font]




I am a Cross Riverian. The State that presently recieves about N1.2b in federal allocation, about the lowest in Nigeria. Juxtapose Akwa Ibom's N10Bn+ monthly for effect. Also the state with the highest debt burden in Nigeria (Source: Fed Min. of Fin website).

Donald Duke did set up a nice street party in calabar. Tarred roads, and provided a nice atmosphere for calabar. In a country bereft of leadership and vision, his approach, coupled with skillful use of the media (borderline propaganda), was a breath of fresh air for an absolutely starved populace.

people hold the erroneous belief that TINAPA is a private sector development midwifed by the State under Donald, it was anything but. TINAPA was not built with private sector funds, the State Government under Donald took on huge loans from commercial banks, at commercial rates (i stand to be corrected), by some estimates as much as N80bn+, to undertake the project, payment of which is now a first line charge on the state's federal allocation. While the private sector did contribute, the volume of the state's investment is such that one may safely assert that it was State financed.  From a critical point of view, financially, TINAPA is a black hole for the state. Not only are returns meager, the government also has to incur costs to maintain it (always signs of a bad investment). Legal framework and sundry issues critical to its success were not addressed before committing huge sums to the project hence its present status. Its nice to look at, but as an investment decision, I'm not so sure.

Donald Duke did define a new narrative for Cross River State, & he put it on the map as some have rightly pointed out; but ultimately, Donald Duke chose to and will be judged by the fate of TINAPA, a "Luxury Shopping Resort" in a country where 70% of the populace live on less than $1 a day, situated in one of the most disadvantaged states in the federation. It is the single biggest investment decision taken in Cross River and one that will have an impact on the state's finances for years to come (cost inclusive of interest payments on loans from commercial banks for a development project of a long term nature, return on investment, time value of money, opportunity cost of forgone roads, schools, infrastructure, health facilities, etc).

Ultimately, was the decision to commit Cross River state to TINAPA a  good idea, some would say so, it surely is a nice place to visit; but that it was a sound decision, that would yield the greatest good, to the greatest number of Cross Riverians (it was thier monies that were used and thier collective futures mortgaged), i'm not so sure.

Making a choice based purely on his persona, what the newspapers said he did, what some believe he did, what he actually did,  the cleanliness of calabar, or sundry stuff, 2011 is in the kitty. But if i am to base my decision on TINAPA for which he choses to be defined and what i think will become of it (Ala Dubai's debt fuelled and ultimately unsustainable boom), and make no mistake, in the end, "its the economy silly", I'll pass on 2011. I'm sure by then Nigeria will throw up an "alternative", it always does. (not like we go out to vote anyway)

ps.
Its a democracy, we dont all have to subscribe to a single view. that would be facsist. (for those with a diffenrent opinion)