₦airaland Forum

Who cares? How do such inane topics make it to the front page?

Every religious leader eventually succumbs to the Dark Side, my apologies to Anakin Skywalker and Darth Sidious. Even the Catholic popes were guilty of raping nuns and burying aborted foetuses on the Vatican's grounds. This damage control exercise by RCCG's spinmeisters will not fool anybody. It's time for our feeble government to force these religious banks to start paying their taxes. At least that will bring about some sanity.

Daddy G.O will perish on that plane. I hope they don't find him with a couple of nubile naked RCCG choristers, their long skirts slit open as the paparazzi make the rounds of the smoldering wreckage.

Do you RCCG adherents actually believe that Adeboye doesn't get his groove on? Or stroke his salami when no one is watching. The guy's a hypocrite just like Jimmy Swaggart and the rest of them.

I don't understand how supposedly smart people can give their money to hucksters like Adeboye, Oyakhilome and Oyedepo in the name of religion. Are Black people so dumb? Research has shown that there's an inverse relationship between a country's religious zeal and its development.

Imagine this scenario in a Pentecostal church. "Oh, the Lord says that there is a woman here who is looking for the fruit of the womb," says Daddy Adeboye. Fifty women come out and rush to the altar. Nobody asks what went wrong. Did the G.O get it wrong or are the members fibbing? If the members are fibbing, why can't the powerful G.O use his God-given powers and expose the 49 liars.

But the show goes on and the dumb trick succeeds. Adeboye is a master of the con game. The best con is the one who suckers you into thinking he's the good guy. As P.T Barnum said, "A sucker is born every minute."

Dayo Coker claims to have obtained evidence exposing ICB.



http://www.saharareporters.com/index.php?option=com_content&view=article&id=2260:the-lies-of-intercontinental-bank&catid=116:sr-readers-letters&Itemid=393

I've never liked Adeboye and I feel that beyond that gentle mien is a hypocrite who doesn't practise what he preaches. I'm happy that he's bought a plane because so many celebrities and dignitaries have perished in small planes. The list is endless:

Payne Stewart, Championship golfer
JFK Jr: American Icon
Aaliyah: Recording Artiste
Bruce Gibson: Chelsea Executive Director
John Walton: Wal-Mart Heir
Steve Fossett: Explorer

I think the two-faced "Daddy G.O" will go down in flames. Nice way to go out, huh?

Dayo Coker claims to have obtained evidence exposing ICB.



http://www.saharareporters.com/index.php?option=com_content&view=article&id=2260:the-lies-of-intercontinental-bank&catid=116:sr-readers-letters&Itemid=393

I got this from Coker's blog.

Soyinka called it collective amnesia, the seeming inability of Nigerians to remember the past, no matter how recent. After the global financial crisis decimated the world's leading economies, Erastus Akingbola, the President of the Chartered Institute of Bankers told the press that Nigeria was immune from the meltdown. According to him, the Nigerian financial system did not contain exotic instruments such as the CDOs, subprime mortgages and credit derivatives that launched America's bubble economy. He was wrong and the people conveniently chose to forget.

That careless and shallow statement illustrated Mr Akingbola's intellectual dwarfism and shallow understanding of the financial system. Since then, several strange things have happened at Intercontinental Bank such as its decision to raise its savings minimum balance to 10,000 and the complete shutdown of its services three weeks ago. The bank claims that it experienced a service disruption as a result of its migration to a new technological platform but its managers did not deem it fit to notify its customers in advance. How does that reflect responsible corporate behaviour?

Intercontinental Bank also claims that it has a 1 trillion balance sheet but analysts at Proshare, Nigeria's leading independent analysts, have already raised questions over its financial statements. Many people do not know that a company can generate a huge balance sheet by revaluating its fixed assets and employing other creative accounting gimmicks. UBA was the first to do it in Nigeria and other banks have since caught on.

Mr Akingbola also claims that the European Investment Bank has asked it to disburse 50m Euros to strengthen the educational sector. I would like the Nigerian press to really investigate this arrangement to find out the truth of the matter. I am highly suspicious of this deal because I noticed that Intercontinental Bank hurriedly inaugurated a non-profit organization AFTER it supposedly received the loan. Does the bank plan to exploit Nigeria's lax corporate laws and use its Foundation as an avenue for diverting funds meant for revitalizing the educational sector.

I also wonder why the venerable AAA-rated European Investment Bank would partner a bank that agreed to accept the shares of a state government as collateral for a private buy out of a company indicted for massive corruption (WILBROS). I have already written the EIB seeking clarification on this matter. Foreign institutions cannot continue to apply different standards when they are dealing with less developed countries. Such a thing would not happen in Europe or North America.

Intercontinental Bank should also explain how Alhaji Shehu Badamasi of Tanzila Petroleum, managed to obtain a 19 billion facility with 100M worth of shares in a small insurance firm. Where was the oversight? What about all the small businessmen that could have benefited from this loan?

Someone sent me an email asking why I was singling out Intercontinental Bank when nearly all banks are exposed to bad loans. My answer is simple. We need full disclosure from all our banks just as Sanusi Lamido said in his interview with the Financial Times. I didn't expect tottering banks like Sterling, Wema Bank, FinBank and Sterling Bank to come clean over their books but I was really impressed when Finbank’s last reports reflected its true state of affairs.

The so-called big ones must set a good example. Intercontinental Bank must open up its books and tell us the extent of their exposure to toxic assets. People do not understand the risks inherent in the Nigerian banking sector. I have obtained documents showing that Skye Bank paid a 40 million naira public offer BONUS to Adedotun Adeniyi, then a General Manager in charge or retail banking. Other banks have also embarked on similar spending sprees, buying private jets and luxury condos in Dubai for their chief executives. At the height of Wema Bank's problems, Jeremiah Omoyeni, its former CEO still managed to approve a 500 million housing allowance even though the bank was performing poorly.

People argue that the nation's economic commanders will try their damnedest to stave off the collapse of some banks but we can never be certain the hostility of Northern oligarchs towards the present CBN governor. Banks that are perceived to be too close to him might be pushed aside. All it takes is one shift in policy from Yar’Adua’s inconsistent government.
Even if that doesn't happen, there is no excuse for mismanaging a public company, owned by many Nigerians around the world. And I personally do not believe that Mr Erastus Akingbola is qualified to lead Intercontinental Bank in this critical period. There is no rationale for opening 70 new branches in a recessionary cycle. Has he considered the huge costs of maintaining generators, deploying ATMs and staffing those branches?

People have called me all sorts of things ranging from hired hack to devil's spawn but I will continue to ask the necessary questions just like David Einhorn. I seriously believe that behind its glitzy facade, something is seriously wrong with Intercontinental Bank and I’m willing to bet my resources on it.

I have received numerous insults from the bank's staffers saying that I'm wasting my time since only a small fraction of Nigerians have access to the Internet and that the bank is built on Jesus. They also say that Nigerian newspapers are still behind their banks.

Well, they obviously do not understand how far we are willing to go with this crusade. As I write, flyers and posters have been printed for distribution around Nigeria's major cities explaining the true state of things in the banking industry. Denizens of the United Kingdom who want to more information can also meet us at Speaker's Corner where we will soon hold a series of conferences.


The truth has no branches.


Intercontinental Bank Foundation



1. Dr Erastus Akingbola

2. Mrs Seinye Lulu-Briggs

3. Mr Chris Alabi

4. Mr Yinka Adebiyi

5. Mrs Folake Adeoye



The aims and objectives are:

1. To enhance educational infrastructure development

2. To raise the literacy level among Nigerians

3. To give scholarships to students to aid education

4. To provide education resources for effective learning

Any objection (s) to the registration should be forwarded to the Registrar-General, Corporate Affairs Commission, Abuja, within 28 days of this publication.



Signed

Itseuwa H. Unoakhe and Co

Suite A31, Maitama Shopping Complex, Maitama Abuja, 08033139576.

I finally tracked down the guy's blog at dayocoker..

He's got some crazy allegations in there.

INTERCONTINENTAL BANK ON THE VERGE OF COLLAPSE.

Intercontinental Bank, one of Nigeria’s high-flying banks is facing serious difficulties that could force it into liquidation before the end of 2009. The bank’s precarious situation is due to its huge exposure to toxic loans to stockbrokers and importers of petroleum products.

While CBN has offered a stout defence of the bank’s financial position, a detailed investigation by THE INSIDER has confirmed that Intercontinental’s net assets are dwindling by the hour. The FIRS recently stopped the bank from collecting revenue and the EFCC has invited some of the bank’s top brass over the 19 billion facility given to Alhaji Shehu Badamasi, the CEO of Tanzila Petroleum.

The bank recently tried to raise some money by increasing its minimum savings balance from 1000 to 10000 hoping to use the cash to bolster its books. The move backfired as the general public could not understand the rationale behind the directive. As people rushed to withdraw their funds, the bank shut down its systems on March 6, 2008 and later blamed it on a technological problem.

Staffers of Intercontinental are already looking for jobs in other banks as it has become obvious that only a miracle will save Erastus Akingbola’s empire. His well publicized plans to buy a Rolls Royce Phantom on his sixtieth birthday may soon have to be placed on hold as the stark reality finally dawns on him.

Yesterday’s CBN directive would have carried more weight if the agency could be trusted. Professor Soludo promised depositors before the consolidation that no depositor would lose his money after the merger process. That turned out to be a blatant lie. Sylvester Odigie, a prominent businessman still has 300 million trapped in Fortune Bank not to talk of smaller customers that cannot afford to publicize their plight on the pages of newspapers. Soludo knows that there is a 95% chance that he will not be offered a second term at the helm of the CBN so he can afford to endorse Intercontinental Bank knowing that he is on his way out.

By the way, Intercontinental Bank has developed the habit of using its “Best Bank in Nigeria” award as a cudgel. Whenever, the bank receives bad press, it reminds us that The Banker, an affiliate of The FT named it as the Bank of The Year for 2008. But the same lazy researchers at The Banker, a PR rag, said that Spring Bank was one of Nigeria’s top five banks. A few months later, Spring Bank nearly collapsed. Lesson: Awards mean nothing. Always do your own due diligence.

By the way, I received a “damage control” text message from Intercontinental Bank today. It read, “Dear esteemed customer, the minimum balance on your savings account remains N1,000. Kindly disregard our earlier SMS on the increase. We regret any inconveniences and appreciate your continued patronage.” It came too late. I’ve already cleaned out my account. I advise you to do the same.

UBA AXES PRESTIGE BANK.

Remember that sexy advert with a goldfish in a bowl and the caption, “You’ll find it a little less crowded”? Well, it seems UBA’s foray into luxury banking has been short-lived. A source who spoke on the condition of anonymity says that Funmi Omitowoju, the MD of UBA Prestige Bank, could not meet her targets and was poaching customers from UBA Plc Regular. Unfortunately, Tony Elumelu doesn’t find such actions funny and the ex-MTN executive was quickly shown the way out.

COMMENTS?

Dayo Coker
Ex-Editor,
NIGERIAREPORTERS.COM


BACK TO INTERCONTINENTAL BANK

After publishing my article on Intercontinental Bank last week, I received lots of emails from the bank’s staffers. Most of them were expectedly laced with vitriol and insults but I couldn’t help noticing a disturbing trend. First, not one of the writers bothered to deal with the questions raised in the article.

Second, 90% of the people that replied me couldn’t write an error-free sentence. Their mangled English and intellectual dwarfism got me thinking about the bank’s criteria for hiring its staff.

Third, nearly 60% of Intercontinental Bank workers appear to be “born-again” Christians and they defend their bank with religious fanaticism. How do I know? Their emails were usually signed with stuff like; “We will succeed in Jesus name” and suchlike.

I don’t reveal my sources but I’ve decided to publish some of the emails since none of them asked me not to.

Victor Igbokwe <Igbokwe.Victor@intercontinentalbankplc.com>

This is cheap publicity for one of the top 500 banks in the world,

You can only make us more popular by this unwholesome act of yours

You cannot achieve anything through this,

You will only destroy yourself from trying to destroy what others labored for

Better repent or face your doom!

Thelma Onyewuchi <Onyewuchi.Thelma@intercontinentalbankplc.com>

Dear Ex-editor,

What’s worth doing is worth doing well. Next time you decide to de-market a bank, state facts and figures. You are a disgrace to the media. How much were you paid?

Adeola M. Oyewole <Oyewole.Adeola@intercontinentalbankplc.com>

Dayo,
you sound educated and learned but unfortuntely…i dont think you have sense.you mean you could waste precious time to do a write up like this.obviously time is not precious to me.cant exchange words with you though,but lets have your account number and real name if you are really sure of yourself.no pen name please.once you do that we can now verfy your claims.am very sure you are not a customer,you are paid to do this.

Adeola Oyewole
Relationship Officer
Retail&Personal Banking
A2,Ahmadu Bello Way
Kaduna
Tel:062 243323
Mobile:0802 310 4504

From: Olaitan Olowoleru

INTERCONTINENTAL BANK IS OUR JERUSALEM,…….LETS KEEP PRAYING

OLOWOLERU OLAITAN
RELATIONSHIP OFFICER
AHMADU BELLO WAY KD
08034517087
062-243325,243323

…….SERVICE WITH EMPATHY.

From: Titilayomi Ogunlaja

Na wa ooooooooooooooooooooooooo!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

How can some one sit to write this and place it on the paper in the name of gaining fame.

Afterall,our bank is not the only one that may be exposed,

So why the beeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeffffffffffffffffffffff!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Titilayomi Ogunlaja

Intercontinental bank Plc,

Matori branch

125,Ladipo street,Matori,Lagos.

08057310451;08022470954;01-2771288

We cannot afford to be emotional/sentimental about the issues of destiny.

From: Abosede Omokowajo

Have you guys seen this?

The Lord indeed is our defence!

?Regards

OMOKOWAJO BOSEDE

OPERATIONS – WILLOUGHBY

Be kinder than necessary becos everyone you meet is fighting some kind of battle.juggling

Oladesu Stephen <Oladesu.Stephen@intercontinentalbankplc.com>

stop this negative campaign against IBPLC.

This bank is built on the solid rock of God and as such cannot be shaken.

Not even you and your 1000 other detractors.

Oladesu Stephen

BOM

Bornoway Branch 152

08036744354, 018979798

james amingo <bdiddy77amingo@yahoo.com>

when did the GCE told you that he wants to but anything.You just woke up and start thinking rubbish, you are a big fool.mind you i am a staff of intercontinental bank and i firmly assure you that all of us are going no where.i cant just imagine that people like you are still alive.you still have the guts to tell people to make comments.Let me tell you something, if you think you can destroy what the Lord has build you are just deceiving yourself.For your information intercontinental bank is build on a solid rock.Try to find another means cause we are still having more and more customers everyday.OH!sorry thanks for the advert,,i should call this advert….oh thanks a lot.IDIOT.

Esan.Abayomi@intercontinentalbankplc.com>,

cc MAZAMAZA BRANCH -19 <MazamazaBranchIB@intercontinentalbankplc.com>,
Owerri- 21 Whetheral Road -33 <owerribranch@intercontinentalbankplc.com>,
Owerri- 117 Whetheral Road -199 <OwerriEQY@intercontinentalbankplc.com>,
Owerri- Bank Road- 340 <Owerri-BankRoad-340@intercontinentalbankplc.com>,
LOKOJA BRANCH -80 <LokojaBranchIB@intercontinentalbankplc.com>,
OKENE BRANCH -288 <Okenebranch@intercontinentalbankplc.com>,
OBAJANA BRANCH -231 <ObajanaBranch@intercontinentalbankplc.com>,
DAMATURU BRANCH -55 <DamaturuBranchIB@intercontinentalbankplc.com>

Hello Dayo,

I want to believe that it is sometimes good to make a proper research before a mail like this is released to the general public. As you know that this will have a far more damaging effect than expected. INTERCONTINENTAL BANK PLC is banks that is FAR from COLLAPSING, and if you think this is not true, then visit the fact behind the figures.

INTERCONTINENTAL BANK PLC recently has just been rated one of the TOP 500 banks in the world and 2nd in NIGERIA after First Bank Plc. This kind of rating don’t just come but with hard work and dedication to our numerous customers. I think it will be good to brush up your memory a little, INTERCONTINENTAL BANK PLC is one of the first bank to cross the $1B Deposit benchmark and only last year did the bank won the BEST BANK OF THE AWARD. (This was CONFERED on the bank outside the shores of this country).

From your name (DAYO), you must be from the west, so I should give you some adage. (ILE TI ABA FI ITO MO, IRI NIO WO) A HOUSE BUILDED WITH SPITTLE, WILL DEFINITELY CRUSH AT THE SIGHT OF THE MORNING DEW.INTERCONTINENTAL BANK PLC is not a house built with spittle and DEFINITELY WILL STAND FOR POSTERITY TO SEE. I think it is better for you to go back to the achieves and see the challenges faced by the founding fathers of the bank before the bank became what it is today. I don’t need to remind you of our services because our numerous customers are one of the most satisfied customers in the industry and likewise our staff are among the most dedicated staff in the industry. I can go on and on but I believe this piece will do.

I know that organization and people are been paid to blackmail one another but I don’t want to believe that anyone paid you to do this, please desist from this dangerous act.

Thank you.

Esan B. Abayomi,

Ahmadu Bello Way, Kaduna

08077710231

If you don’t stand for something, you will fall for anything ……So, STAND.

Paul Dada
to me, I-

show details Mar 20 (3 days ago)

Reply

Bros, pls stop impersonate our bank. What you don’t know is this, if at all you suicide in rain down the bank through your rumour mongering, you can not tarnished the image of Erestus Akingbola which as build right from the time but you can’t only increase rate of unemployment among the youth including me. Because my Baba (Erestus) has all ready worked to sustain his own life & also the life of his entire family. To your own part, prosperity will never forgiving you and your generation. I believe one or two of your families will definitely affected with unemployment. If you have grudge with Baba this is not the right way to tackle it come directly to him I know Him is a man of god, He will surely give you listen hear. Be guided Ex-Editor NIGERIAREPORTERS.COM.

DADA PAUL OLORUNLEKE (DPO)
Retail & Personal Banking
Intercontinental Bank PLC
Makurdi Branch
08062381509
dominion_dpo@yahoo.com

Heading image
…, joint spirit is the best key toward development……………

From: Paul Dada
Sent: Fri 3/20/2009 12:57 PM
To: MAKURDI BRANCH -53
Subject: FW: INTERCONTINENTAL ON THE VERGE OF COLLAPSE

My people, We need prayer & fasting this time………………………………

DADA PAUL OLORUNLEKE (DPO)
Retail & Personal Banking
Intercontinental Bank PLC
Makurdi Branch
08062381509
dominion_dpo@yahoo.com

Heading image
…, joint spirit is the best key toward development……………

From: Marita Odimgbe
Sent: Fri 3/20/2009 11:54 AM
To: I- GLOBAL -( Mar 11-May 17, 2008); Femi Enigbokan
Subject: FW: INTERCONTINENTAL ON THE VERGE OF COLLAPSE

Can you imagine this?

May God help us,save us and bless intercontinental in Jesus name….AMEN !!!

Odimgbe Marita
Relationship Officer,
Adeniran Ogunsanya,
Surulere;
Lagos.

Telephone; 08038183310
01-2771137
01-2770047

He lives in me……….!

From: Olayinka Esan
Sent: Fri 20/03/2009 11:42 AM
To: SURULERE -ADENIRAN OGUNSANYA BRANCH -18
Subject: FW: INTERCONTINENTAL ON THE VERGE OF COLLAPSE

HELLO MY PPLE,

KINDLY USE THIS WEEKEND TO PROMOTE THE BANK, REMEMBER THAT THIS IS OUR JERUSALEM.

GOD BLESS INTERCONTINENTAL BANK PLC, AMEN.

HAVE A NICE WEEKEND.

ESAN OLAYINKA
CASH OFFICER
71/74 ADENIRAN OGUNSANYA, SURULERE
TEL: 2770048, 2771137
MOBILE;08038063912, 01-8783970

From: ime UMOH
Sent: Fri 20/03/2009 11:17 AM
To: Olayinka Esan; Stephen agha
Cc: Jessica Unwana
Subject: FW: INTERCONTINENTAL ON THE VERGE OF COLLAPSE

can you imagine this?

?Regards,
ime UMOH I Intercontinental Bank Plc I CPU, BROAD STREET 2 BRANCH I Lagos
08023545370 I E-mail: UMOH.ime@intercontinentalbankplc.com

From: Adetutu Ladi-Osunkoya
Sent: Fri 20/03/2009 11:00 AM
To: ime UMOH
Subject: FW: INTERCONTINENTAL ON THE VERGE OF COLLAPSE

Ladi-osunkoya A Adetutu
CPU
Broad street
08023550888,07028521255

“I will do my PART to delight our customers,Have you done yours?
HAPPY CUSTOMER HAPPY BANK.

From: Oyebimpe Yusuf
Sent: Fri 20/03/2009 10:17
To: Ikeja-Toyin St Branch -12
Subject: FW: INTERCONTINENTAL ON THE VERGE OF COLLAPSE

Rumour mongers can go to any length like this one

From: Adefemi Onanuga
Sent: 19 March 2009 18:49
To: PHOENIX 113 (May12 -June 18, 2008); MAZAMAZA BRANCH -19
Subject: FW: INTERCONTINENTAL ON THE VERGE OF COLLAPSE

…this is what shoulda been the headlines in at least 6 major newspapers tomorrow!!!

It seems that Nigerian churches have run out of names. Last Tuesday, I went to check out a house in Isolo and I saw a church with the following name, Bosom of Errors Eradication Ministry and Refinery, BREEMAR. The church was sited close to a shallow river and it got me thinking, "Aren't Nigerian 'pastors' going too far?"

I just read a disturbing article on nigeriareporters.com implying that Soludo could soon get axed. Is it fair to sack the same guy that brought banking consolidation to Nigeria?

The latest Forbes List of Billionaires confirms that Aliko Dangote is the richest Black man on earth. Bill Gates has also been finally dethroned. Hurray to Africa's favourite billionaire.

Diamond Bank is the most customer friendly bank in Nigeria. GTB is a close second. The guys at Diamondbank are so patient and caring. I guess they undergo some kind of special training.

A travel agency in Yaba requires the services of an operations manager. The suitable candidate should be less than 35 and have at least two years experience in the travel industry. He/She should also possess an IATA/NANTA/UFTA certification and should be able to independently run a small office. All interested candidates should send their CVs via email to qanadi@yahoo.com.

I bought a substantial amount of Crusader Insurance stock two months ago but the insurance sector has been badly hit by Nicon's lawsuit challenging the entire recapitalisation process. However, that still doesn't explain the way that Crusader tanked this week. Does anybody have any info on this issue?

A Nigerian multinational needs an Industrial Engineering graduate preferably with a 2.1. Send me an email if you meet the grade. It's very urgent. Qanadi@yahoo.com

Nice tale but it's time these so-called Nollywood directors stop churning out trash and learn to tap their creative juices

I was driving around Isolo today when I saw a poster that read "The God of Dollars is my God." The pastor looked weird and his name was strange- Rev Sign Fireman. Isn't the prosperity trend getting bizarre?

Chibuike Eze again? Isn't this Chibuike the same guy that attacked Nospetco in last Friday's Guardian? I don't think newspaper criticism counts for much in Nigeria. There are so many things to worry about.


The rise of the wonder banks-Guardian 21/07/07
By Chibuike Eze
SOME dogged investigative journalists and members of the public recently unearthed the activities of some Nigerian companies that promise investors extraordinary returns on cash deposits. These companies are reminiscent of the disastrous pyramid marketing scheme created in the eighties by Umana Umana, a storied con man who used a financial pyramid marketing scheme to cheat people out of their money in the eighties.

These latest incarnations are now referred to as "Wonder Banks" and recent press reports show that they have attracted a very high number of investors so far. Many people, illiterate and educated, from diverse walks of life have put money into these schemes. It seems that the appeal of easy money is just too great for many Nigerians. The Central Bank of Nigeria, which has been under intense pressure to clarify the legal status of these "wonder banks", finally released a statement that disowned their activities but stopped short of shutting them down. Rather, the bank advised members of the public to desist from doing business with all unregistered finance houses.

The apex bank also published an advertisement in the national papers that warns about "the recent spate of (sic) resurgence of illegal companies offering outrages (sic) interest rate (sic) under different guises, " It also published a list of seventy-six registered finance houses. However, the CBN did not directly condemn these wonder banks or mention them by name.

The feeling among people is that the issue could turn into a full scale public relations disaster for the apex bank, whose Governor is currently being attacked on several fronts. Most people feel that the CBN is sending a wrong message through its attitude towards these illegal firms and they feel that the bank could be blamed if these companies eventually collapse and disappear with investors' funds. According to the nation's financial laws, only registered financial institutions are allowed to accept deposits from the public. Many wonder why the case of Nospecto, Wealthzone and company, is being handled differently. The CBN is sending a wrong message by saying that it is okay for any company to set up shop and start accepting deposits from the public without meeting the regulatory requirements.

These companies also undermine the nation's achievements in terms of fighting money laundering and financial crimes. Since they are not subject to the nation's banking laws, they do not have to report suspicious looking deposits to the Central Bank and criminals could easily use them as avenues to launder money. It is commendable that some banks have refused to do business with these companies citing KYC (Know Your Customer) concerns.

However, some banks have been unable to resist the lure of easy profits and are fuelling the growth of these firms. If the CBN says that they are illegal, then why won't it shut them down and return all the monies to investors. If the CBN could shut down a registered bank like Savannah Bank for shoddy management practices, why can't it shut

down firms that are not even registered to carry out banking business but do it all the same?

Nospetco Joint Venture Management, a Lagos-based firm is clearly the biggest of these firms. The firm is known to be very secretive about its mode of operations and customers are made to sign blind contracts that give the firm complete control over their money. While the firm claims to be involved in the oil and gas sector and actually owns some trucks, their clandestine mode of business raises one important question. What do they really do?

Some people claim that several prominent Nigerians are known to be involved with these firms and some high net-worth individuals have even invested their money in these schemes. Could it be that our government agencies are being pressured by some of the country's big players?

Most people have risen to defend these firms. They say that there is nothing wrong with firms that pay out stratospheric interest rates. They also say that thrift collectors do the same thing without paying high interest rates. These are not logical arguments. Even though the country's economy is largely informal and traditional institutions like Esusu and thrift collection agencies thrive, they are all registered and do not operate under a shroud of secrecy like these firms.

The CBN initially denied responsibility for policing such firms and said that it was the duty of the Securities and Exchange Commission, SEC. However, this is not an issue that should attract such levity. It is not a matter of who is responsible. I can't imagine Ben Bernanke, the U.S. Federal Reserve Chairman allowing such a scandal to happen

under his watch. The most important thing is for the EFCC, CBN and the SEC to shut down these firms and return all deposits to customers before it becomes a financial fiasco. And Soludo should realise that he will be a big target if these companies fail. It is imperative that he joins hands with other agencies and end this nonsense.


Eze is with Project Think in Lagos.

A publishing firm is seeking smart, talented and creative writers and photographers that can contribute to its flagship title. Interested applicants must possess a portfolio of their work and should be able to work with the Nigerian youth market. Please send all applications to Glitz.models@gmail.com.

Yeah, it was an OK piece but it only said what all Nairalanders already know. Anyway, I wonder why Shadofax pasted it in the celeb forum. Seun is not yet a celeb, is he?



Read the article here.

Nairaland leads Nigeria’s web 2.0 onslaught
CHIKE EZE writes on a rapidly growing Nigerian Internet phenomenon
Ask any netizen to name the ten most popular websites in Nigeria and it is a safe bet that Nairaland will make the list. These days being a Nairalander, as members of the Nairaland online discussion forum are known, is enough proof that one is au courant with the prevailing trends in Nigerian cyberspace. In the one and half years that it has been operational, the website has gained a large following and has become an online watering hole where nearly every subject-from the sublime to the ridiculous-is shared, discussed and debated.
In this digital cosmos, one will find people from all walks of life. Its membership profile runs the gamut and comprises the urban intelligentsia, savvy stock pickers, entrepreneurs, newshounds, fashonistas, academics, slackers, film buffs and digiphiles among others. As a result, members of Nairaland can always rest assured that there is always fodder for their minds.
Online discussion forums are nothing new. They have been around since the beginning of the Internet and were part of the Tim Berners-Lee’s plans when he invented the World Wide Web. However, they have become more relevant in an information age where Web 2.0 is the new buzzword and the dot com entrepreneurs that went into exile after the cataclysmic collapse are sneaking out of their hideouts. The palpable feeling is that it is once more fashionable to be an Internet entrepreneur and most venture capitalists seem to agree.
Last year witnessed renewed interest in dot com companies. EBay, the world’s largest auction site paid about two and a half billion for Skype, an Internet telephone company while Google purchased the video sharing site, You Tube for more than one and a half billion dollars. One of the ideas that are fuelling the Web 2.0 craze is the idea of participatory media, which refers to a scenario where consumers get to control the flow of information. This trend is inching its way into mainstream thinking given the huge popularity of blogs, social networking sites and interactive television stations like Al Gore’s Current TV.
Even blogs are getting an infusion of venture capital. Last year, Softbank, a technology consultancy and incubator invested sixteen million dollars in The Huffington Post, a blog owned by the Greek-American political commentator, Arianna Huffington.
Some people have said that Nairaland has the potential to be Nigeria’s MySpace. Myspace is the wildly popular social networking site that Rupert Murdoch purchased for six hundred million dollars in 2006. However, Nairaland does not completely employ the social networking model that basically expands on the six degrees of separation theory. In Nairaland, there are no private communities and everyone is free to comment on every subject. Some of Nairaland’s opinion polls have even been cited in national newspapers.
With its 60,000 registered members, Seun Osewa, its creator and administrator, is living the Nigerian entrepreneur’s dream. The twenty-five year old Ogun State native started Nairaland in April 2005. At that time, he owned an unprofitable blog so he decided to start various forums where people could share their views on different topics. When he realized that the "off topic" forum proved very popular and that he could make money from Google AdSense, he started the site to cover all topics that Nigerians care about.
However, it wasn’t all smooth sailing. He had to contend with the activities of scammers, spammers, making online payments and managing the high web traffic during peak periods. However, his determination and doggedness helped him to overcome all these difficulties. His independent streak and strong survival instinct also proved invaluable. He says that his first three business ventures failed but he never gave up tinkering with his ideas till he created Nairaland. An avowed capitalist whose role model is the free market guru Milton Friedman, he says that Nigerian youths should endeavour to create their own jobs.
He still hopes to build on Nairaland’s success and get involved in the broader media and entertainment business.
However, not everyone is a fan of Seun’s methods. He is something of a polarizing figure, loathed by some people and admired by others. He has been called arrogant, prejudiced, high handed and overbearing. Some members say that he runs the forum like a personal empire and that he does not treat Nairaland members with respect.
According to a member, "Seun is such a dictator and he always wants to control everything that happens in the forum. The way he treats his members is unbelievable but the strange thing is that even through some people want to leave, they are so addicted to the forum that they are finding it very difficult."
But even his critics agree that he is a hardworking entrepreneur and that Nairaland is an engaging forum where people from different backgrounds come together to unwind and discuss burning national and international issues, sports, family, health, romance, entertainment, technology and jokes.
Seun defends himself by pointing out that all great companies have their critics. "People don’t like being censored but without censorship, the site cannot progress," he says. "It is too bad that I have to sacrifice my reputation to make Nairaland a success at all costs, but I see it as an acceptable sacrifice. I am an independent entrepreneur so it is not a foolish risk. The aspects of my reputation that matter-that I am competent and not a fraudster-are very much intact."
In spite of the high traffic enjoyed by Nairaland, its business model is pretty simple. Seun says that most of his annual income comes from AdSense, the advertising program that transformed Google into an Internet cash machine and has helped small companies get their share of Internet advertising revenue. This enables Nairaland to earn a commission for any business it generates for Google’s advertising clients. Nairaland currently generates little income from local advertisers but this could change with increased Internet penetration in the country.
It is likely that when the predicted seismic shake up in current media models spreads to developing countries, sites like Nairaland will have a big role to play in the revolution. Though Nigeria effectively missed out on the first dot com boom, local Internet entrepreneurs seem to be highly inspired by the global success of Web 2.0 firms and are now more likely to sacrifice their job security for entrepreneurial pursuits.
However, even though Web 2.0 is in full bloom and investors are giddy about the prospects of new dot com ventures, the simple truth is that Web 2.0 is hard to define. As Steve Balmer, chief executive of Microsoft, said last year, "Web 2.0 means so many things to so many people. There’s a technology aspect, a community phenomenon, an advertising business model."
If one of the most powerful chief executives in the world is to be believed, then Nairaland has a bright future as it is already a community phenomenon and an advertising template. But it could take a long time before Nigerian venture capitalists begin to take web-based businesses seriously. It is safe to say that when this happens, Nairaland could be one of Nigeria’s first dot com success stories.

Fidelity Bank and USAID are looking for ideas to finance. If you have any good idea and a business plan, may be you should meet them.

We need a frigging revolution. All this talk will get us nowhere.