Saturday, December 19, 2009

Intercontinental Bank Sacks 1,500 Workers
By Muyiwa Adeyemi

BARELY a week to the Christmas, Intercontinental Bank Plc yesterday gave unusual gifts to 1,500 members of its staff: "Letter of disengagement from the bank.

The sack letters were served to the affected staff around 3 p.m. yesterday, changing the atmosphere in the financial institution's banking hall throughout the country to that of shock and disbelief. Those affected were from the position of manager to executive banker level.

The bank is said to have about 5,000 work force nationwide.

The Guardian's investigation revealed that in its over 300 branches nationwide, five workers from each branch had their appointment terminated.

They were to be paid three months basic salary irrespective of number of years they have served the bank.

The sack, which came just two days after their salaries were paid has been hanging in the air for about three months when the new management of the bank had alleged leakage of sensitive information about a transaction by the new Managing Director of the bank Mr. Lai Mahmud Alabi alleged to have granted a waiver of N31billion to some influential Nigerians, the amount higher than the capital base of the bank by its 2005 consolidation.

The bank had also about two weeks ago laid off senior officers from the positions of General Manager (GM), Assistant General Manager (AGM) and Deputy General Manager (DGM) up to senior managers.

Investigation further revealed that the new management decided not to paste names of affected staff on the bank board to conceal the total number of people that were laid off but rather decided to dispatch names to each branch as it affected them.

Also, their salaries had about three months ago been cut down by 30 per cent.

A competent source last night told The Guardian that the new management has requested from each branch manager to submit the name of at least five members of staff in their respective departments for the sack. Three managers were said to have declined to sacrifice any of their junior ones but two of them did not survive the onslaught.

It was also learnt that some managers who complied were not spared in the exercise.

One of the aggrieved staff who spoke to The Guardian on condition of anonymity confirmed that he received his letter at about 3 p.m.

He said that they were just disengaged from the bank even as they did not give them any particular reason. Another affected worker who was contacted on phone last night was still in a state of shock as he betrayed his emotions while confirming to The Guardian that he was affected by the exercise. The employee who worked at the headquarters of the bank alleged that the exercise was targeted at some staff suspected to have any link with the former MD of the bank Erastus Akingbola.

The sacking of 1,500 employees of the Intercontinental Bank came just two days ago when the United Bank for Africa (UBA) also sacked about 2,000 of its workforce.

Before now, there has been speculation that the Central Bank of Nigeria (CBN) has directed banks in the country to reduce their work force or cut down on staff salaries.


http://www.ngrguardiannews.com/news/article01//indexn2_html?pdate=191209&ptitle=Intercontinental Bank Sacks 1,500 Workers

Saturday, December 19, 2009

Intercontinental Bank Sacks 1,500 Workers
By Muyiwa Adeyemi

BARELY a week to the Christmas, Intercontinental Bank Plc yesterday gave unusual gifts to 1,500 members of its staff: "Letter of disengagement from the bank.

The sack letters were served to the affected staff around 3 p.m. yesterday, changing the atmosphere in the financial institution's banking hall throughout the country to that of shock and disbelief. Those affected were from the position of manager to executive banker level.

The bank is said to have about 5,000 work force nationwide.

The Guardian's investigation revealed that in its over 300 branches nationwide, five workers from each branch had their appointment terminated.

They were to be paid three months basic salary irrespective of number of years they have served the bank.

The sack, which came just two days after their salaries were paid has been hanging in the air for about three months when the new management of the bank had alleged leakage of sensitive information about a transaction by the new Managing Director of the bank Mr. Lai Mahmud Alabi alleged to have granted a waiver of N31billion to some influential Nigerians, the amount higher than the capital base of the bank by its 2005 consolidation.

The bank had also about two weeks ago laid off senior officers from the positions of General Manager (GM), Assistant General Manager (AGM) and Deputy General Manager (DGM) up to senior managers.

Investigation further revealed that the new management decided not to paste names of affected staff on the bank board to conceal the total number of people that were laid off but rather decided to dispatch names to each branch as it affected them.

Also, their salaries had about three months ago been cut down by 30 per cent.

A competent source last night told The Guardian that the new management has requested from each branch manager to submit the name of at least five members of staff in their respective departments for the sack. Three managers were said to have declined to sacrifice any of their junior ones but two of them did not survive the onslaught.

It was also learnt that some managers who complied were not spared in the exercise.

One of the aggrieved staff who spoke to The Guardian on condition of anonymity confirmed that he received his letter at about 3 p.m.

He said that they were just disengaged from the bank even as they did not give them any particular reason. Another affected worker who was contacted on phone last night was still in a state of shock as he betrayed his emotions while confirming to The Guardian that he was affected by the exercise. The employee who worked at the headquarters of the bank alleged that the exercise was targeted at some staff suspected to have any link with the former MD of the bank Erastus Akingbola.

The sacking of 1,500 employees of the Intercontinental Bank came just two days ago when the United Bank for Africa (UBA) also sacked about 2,000 of its workforce.

Before now, there has been speculation that the Central Bank of Nigeria (CBN) has directed banks in the country to reduce their work force or cut down on staff salaries.


http://www.ngrguardiannews.com/news/article01//indexn2_html?pdate=191209&ptitle=Intercontinental Bank Sacks 1,500 Workers

Saturday, December 19, 2009


By Muyiwa Adeyemi

BARELY a week to the Christmas, Intercontinental Bank Plc yesterday gave unusual gifts to 1,500 members of its staff: "Letter of disengagement from the bank.

The sack letters were served to the affected staff around 3 p.m. yesterday, changing the atmosphere in the financial institution's banking hall throughout the country to that of shock and disbelief. Those affected were from the position of manager to executive banker level.

The bank is said to have about 5,000 work force nationwide.

The Guardian's investigation revealed that in its over 300 branches nationwide, five workers from each branch had their appointment terminated.

They were to be paid three months basic salary irrespective of number of years they have served the bank.

The sack, which came just two days after their salaries were paid has been hanging in the air for about three months when the new management of the bank had alleged leakage of sensitive information about a transaction by the new Managing Director of the bank Mr. Lai Mahmud Alabi alleged to have granted a waiver of N31billion to some influential Nigerians, the amount higher than the capital base of the bank by its 2005 consolidation.

The bank had also about two weeks ago laid off senior officers from the positions of General Manager (GM), Assistant General Manager (AGM) and Deputy General Manager (DGM) up to senior managers.

Investigation further revealed that the new management decided not to paste names of affected staff on the bank board to conceal the total number of people that were laid off but rather decided to dispatch names to each branch as it affected them.

Also, their salaries had about three months ago been cut down by 30 per cent.

A competent source last night told The Guardian that the new management has requested from each branch manager to submit the name of at least five members of staff in their respective departments for the sack. Three managers were said to have declined to sacrifice any of their junior ones but two of them did not survive the onslaught.

It was also learnt that some managers who complied were not spared in the exercise.

One of the aggrieved staff who spoke to The Guardian on condition of anonymity confirmed that he received his letter at about 3 p.m.

He said that they were just disengaged from the bank even as they did not give them any particular reason. Another affected worker who was contacted on phone last night was still in a state of shock as he betrayed his emotions while confirming to The Guardian that he was affected by the exercise. The employee who worked at the headquarters of the bank alleged that the exercise was targeted at some staff suspected to have any link with the former MD of the bank Erastus Akingbola.

The sacking of 1,500 employees of the Intercontinental Bank came just two days ago when the United Bank for Africa (UBA) also sacked about 2,000 of its workforce.

Before now, there has been speculation that the Central Bank of Nigeria (CBN) has directed banks in the country to reduce their work force or cut down on staff salaries.



http://www.ngrguardiannews.com/news/article01//indexn2_html?pdate=191209&ptitle=Intercontinental Bank Sacks 1,500 Workers

alliednetw:

This guy speaks from both sides of his mouth!

the guy talks too much and act hastely.
he is indirectly or directly bringing woe to this economy,
, as all banks are now sacking staff.
, our economy is presently stagnant.

we shall continue praying for better.

i think we should not get confused.

this case is the one against infringement on the operations of his 4 companies.

NOT THE ONE THAT CHALLENGES HIS REMOVAL AS INTER'S MD.

he may loose this one on the ground that EFCC are free to infringe on any accused person properties during the course of their work.

But the removal by SANUSI's case is still pending in the court and sanusi doesn't want court to hear it.

let's keep watching,

Atedo Peterside faults CBN on code of corporate governance
Business Dec 15, 2009 By Babajide Komolafe

Chairman, IBTC Stanbic Bank, Mr. Atedo Peterside, has faulted the Central Bank of Nigeria (CBN) on the provision of one code of corporate governance for operators in the financial sector.

“Our regulator-imposed corporate governance codes and arrangements does not take cognisance of vastly differing ownership/management dynamics, nor are they adjusted or fine-tuned for the unique set of risks facing each institution.

“Our insistence on a One-Size-Fits-All approach to Corporate Governance will therefore continue to lead us to sub-optimal outcomes.”, he said at the 2009 Public Lecture of the London School of Economic Alumni Association of Nigeria held last week in Lagos.

Earlier, the Deputy Director, Banking Supervision, CBN, Dr. Kingsley Moghalu, said the apex bank, in collaboration with other regulators in the financial services sector under the aegises of the Financial Sector Regulatory Coordinating Committee (FSRCC), was working on a comprehensive reforms of the sector.

This, he said, includes the development of a hamonised code of corporate governance for the sector. He said there was conflict among the different codes issued by each regulator and this is exploited by operators to engage in arbitrage.

He said the hamonised code will eliminate the areas of conflict and opportunities for arbitrage adding that the code will be enforced through sanctions and penalties.

Peterside, however, faulted this approach, saying it is like recommending the same diet for everybody, a situation that makes people with excess weight to overfeed while people who are underweight may be underfed.

He said that a hamonised, one-size-fits-all code would create a situation where people with excessive power will have more power and become more dominating in their organisations.

Peterside also faulted the response of the CBN to the financial crisis vis-a-vis the Expanded Discount Window, saying it tantamount to continuously over feeding an over-weight child.

He also warned that the proposed Asset Management Company could exacerbate mral hazard problem in the banking industry.

He said, “Misuse of the CBN’s Expanded Discounted Window as a permanent funding source created a moral hazard problem. It also encouraged illiquid banks to delay asset disposals, cost-cutting measures and the general conservation of cash in their day-to-day operations thereby making it even more likely that the regulator will eventually turn off the tap and bring down the hammer.

“If care is not taken, the envisaged Asset Management Company could exacerbate the moral hazard problem. Our dysfunctional legal system is now being put to the test again. Unfortunately, the patient might die long before we resolve a suit on who has the authority to give him the required medication.

we shall not worry. it shall be well.

this is Sanusi banking reform.

by the time all banks downsize finish, we shall see the outcome.

i heard other banks too are warming up.

God shall SAFE us

Statement by the Renaissance Professionals castigating the Central Bank directive to rescued banks to embark on staff rationalization. In recent weeks, the Renaissance Professionals have led a campaign of 'query' against the Lamido Sanusi, Central Bank of Nigeria governor's actions.


http://www.scribd.com/doc/23419032/Renaissance-Professionals-Press-Statement-Central-Bank-of-Nigeria-Reforms-Economic-Sabotage-or-Bank-Sanitization-By-Victor-Shodipo-ThisDay-New

http://www.ngrguardiannews.com/appointment/article01//indexn2_html?pdate=101209&ptitle=Nigeria's unemployment situation critical, says LCCI boss


Nigeria's unemployment situation critical, says LCCI boss
By Babatola Adeyemi

RELIEF may not be far away for the country's army of unemployed as the new president of the Lagos Chamber of Commerce and Industry (LCCI), Chief Femi Deru, described the unemployment situation in the country as critical and pledged to be in the vanguard of ensuring the achievement of full employment in Nigeria.

Deru made his views known in an exclusive interview with The Guardian recently in Lagos, a day after his investiture, during which Lagos State Governor, Mr. Babatunde Raji Fashola, lauded LCCI for its support to the state through the Public-Private Partnership initiative.

Interestingly, the former President of LCCI, Chief Solomon Onafowokan, corroborated Deru when he said in his valedictory speech that the Private Sector has a critical role to play in job creation.

According to Deru, during his tenure, LCCI would broaden its activities to embrace the campaign for full employment in Nigeria. He stated: "We are known for canvassing for improved business environment, but I want to be in the vanguard of ensuring that full employment is achieved in Nigeria. I want to use LCCI to ensure that more of manufacturing is done by Nigerians, because that is where our skills, our graduates, our children can be better employed."

He added: "Boosting manufacturing so as to create employment opportunities has multiplier effects. Because the more you employ people, the more you feed the people who are dependent on those in employment. It is not good for you to have siblings and families and you are not able to feed them. So, it's a serious matter. And I want to make the employment of our graduates, technicians and skilled labour as one of my priorities, so that they can be more useful, because people want to be employed, they don't want to be begging on the streets".

The LCCI boss emphasised the role of the private sector in national development, stating that the sector ought to generate employment to minimise the problem of unemployment, poverty and insecurity in the country.

His words: "The private sector is critical to the current economic recovery and transformation efforts. We need the private sector to create wealth from which the government could generate revenue: we need the private sector to generate employment to minimise the problem of unemployment, poverty and insecurity in our society. We need a virile private sector to make our country a respected member of nations. We would not relent in our advocacy to foster a conducive environment for the private sector to play the role expected of it in the realisation of the Nigerian vision. We would sustain the tempo of our advocacy for a better policy, infrastructure conditions and conducive environment for business development."

Speaking on a similar note, Onafowokan said the private sector has a critical role to play in job creation, poverty alleviation, wealth creation and equitable distribution of income and many more.

According to him, the private sector has a major role to play in the realisation of the country's vision to be a leading economy in the continent and indeed globally.

Onafowokan, however added:" We cannot do this unless the environment is right, The business environment is still far from being ideal".

Fashola, who was represented at the investiture by the state's Permanent Secretary in the Ministry of Commerce and Industry, Mr. Wale Raji, lauded LCCI for supporting the state's quest for good governance.

According to the governor: "The participation of your organisations in our Public-Private Partnership initiative has enabled the state to provide an effective and efficient security system, establish a mortgage housing scheme, finance small businesses through its micro-finance scheme, beautify the environment and fund our schools. The relationship has also opened up some more areas of cooperation and obligation such as the payment and remittances of taxes".

While pledging to ensure an enabling environment for businesses in the state, he also pleaded with the stakeholders to pay their taxes promptly and regularly.

"Taxes are the other side of the coin in the social contract which the citizens must perform by paying to government. That is the only way your government can continue to build infrastructure that will support your investment and enhance your well being, that of your families and the citizens at large", Fashola stated.

MrCrackles:

What has Sanusi's name got to do with the wave of redundancies and job losses sweeping through Intercontinental Bank

back2back:

you need to read between the line!

MrCrackles:

Read between what lines?
So it is Sanusi's fault that Intercontinental Bank did not put its crib in order

@MrCrackle

you are mumu and big fool. i doubt wether you has a job, if not you will understand what it takes for 1500 pple to lose their job.

MrCrackles:

What has Sanusi's name got to do with the wave of redundancies and job losses sweeping through Intercontinental Bank

It was reported in the dailies last week that CBN (Sanusi) wrote the new MD of intercontinental bank , ALABI, to reduce salary and sack some staff.

Do you understand now.

Nigerians should have feeling for these high number of people that will come and join the bad wagon of JOB SEEKERS for job that is not available.

I WEEP FOR NIGERIA

Sanusi's reform still remains one that can always do more arms that good just as the writer said.
Looking at the Thisday news paper of Thursday 3rd DEC, it was written there that CBN(sanusi) wrote the MD of intercontinental bank to reduce salary and lay off some staff. Just as Sanusi(Almighty) will has it, 26 senior staff of that bank according to Thisday paper Friday 4th DEC, were asked to resign. insider information revealed that more list is still being compiled.
This is the trend of Sanusi' banking reform. all banks have now choose to be sacking staff either as advised by CBN or for them not to be caught up in the mess.
what of increment in the ever growing unemployment figure in Nigeria.

God shall help us

Report to moderator 41.220.75.17



adigun101
Posts: 143

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Re: Sanusi Incompetent To Manage Cbn
« #66 on: Yesterday at 09:45:41 PM »

--------------------------------------------------------------------------------

Quote from: realmen on Yesterday at 08:45:25 PM
Sanusi's reform still remains one that can always do more arms that good just as the writer said.
Looking at the Thisday news paper of Thursday 3rd DEC, it was written there that CBN(sanusi) wrote the MD of intercontinental bank to reduce salary and lay off some staff. Just as Sanusi(Almighty) will has it, 26 senior staff of that bank according to Thisday paper Friday 4th DEC, were asked to resign. insider information revealed that more list is still being compiled.
This is the trend of Sanusi' banking reform. all banks have now choose to be sacking staff either as advised by CBN or for them not to be caught up in the mess.
what of increment in the ever growing unemployment figure in Nigeria.

God shall help us

if the above is true, then it means that CBN is actively running some Nigerian banks. Well this is banking made in Nigeria. But I predict it will lead to a comatose Banking sector just like our comatose economy and comatose president !
How befitting !


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naijaking1
Posts: 3163

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Re: Sanusi Incompetent To Manage Cbn
« #67 on: Yesterday at 10:04:39 PM »

--------------------------------------------------------------------------------

Quote from: adigun101 on Yesterday at 09:45:41 PM
if the above is true, then it means that CBN is actively running some Nigerian banks. Well this is banking made in Nigeria. But I predict it will lead to a comatose Banking sector just like our comatose economy and comatose president !
How befitting !


Of course the statement is true, I saw the article too.
Any unbiased observer will see the criminal incompetency of Sanusi from a mile away. My brother, your prediction will be in line with those of banking and financial experts like Chie Edonien of Eket.

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realmen
Posts: 21

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Re: Sanusi Incompetent To Manage Cbn
« #68 on: Yesterday at 10:50:42 PM »

--------------------------------------------------------------------------------

Economy wise, all banks have refused to give out money(loan) for any business or investment of any kind or magnitude or importance.
FG and CBN begged, advised and implored banks to start given loans, but they all refused. Banks refused to continue with existing facilities, and ask customers to pay down prematurely. all these are to conform with Sanusi's reform. or better still to play safe.

oil importers are not availled facilities to import again as before.
foreign banks are asking for cash back up for Letter of Credits from all Nigeria banks now as they trust no bank in Nigeria again. we are believe to be birds of the same feathers.

banks are confused to do real business
as they dint know what may happen next.

all these definitely are affecting economy



i pray God help Nigeria


NIGERIANS WE NEED PRAYERS SERIOUSLY AT THIS LEVEL OF OUR ECONOMY UNEASE

Remii:

^^^^^ My brother, one cannot but be baffled with some people just attacking Sanusi's actions just for the fun of it. The penson funds have lost almost 50% in the past two years, meaning the salary portion deducted lost 50% value instaed of gain or maintain value at worst, that is, it was better for the staff not to have contributed any part of their salaries in the last two years. People who must retire are leaving with almost nothing and those who plan early retirement are shelving the idea, they continue to work, under grudges against their life plan. Yet they here stories of CEOs given their cronies billions of Naira unsecured loans. Non of the CEOs have come out to deny any of the frivolous facilities said to have been granted other than insinuating agenda. Why did they do what would allow anyone carry out his so called agenda. Why would Akingbola run away if he has nothing to hide.

But some of these CEO's have gone to court to challenge their unjust removal.
In the court they can say their parts of the story, deffend themselves if they have genuine case or they are not thieves as Sanusi/EFCC have termed them to be.
But while is Sanusi telling court not to listen to Akingbola and Ibru. when he knows for sure he has genuine allegations against these so called thieves. Federalcourt ruled that he want to handle the case both the substantive case and the objection of the CBN because of time. still CBN appeal that court should not entertain Akingbola ' case.
If these guys are bad and have committed so so much, CBN should allow court to judge and CBN/Sanusi?EFCC should go to the court with their evidence andlet the judgement be done on time.

JUDGEMENT DELAY THEY SAY, IS JUDGEMENT DENY.

we should all be guided

Hmmmmmmmmmmmmmmmmmmmmmmmmmm

Economy wise, all banks have refused to give out money(loan) for any business or investment of any kind or magnitude or importance.
FG and CBN begged, advised and implored banks to start given loans, but they all refused. Banks refused to continue with existing facilities, and ask customers to pay down prematurely. all these are to conform with Sanusi's reform. or better still to play safe.

oil importers are not availled facilities to import again as before.
foreign banks are asking for cash back up for Letter of Credits from all Nigeria banks now as they trust no bank in Nigeria again. we are believe to be birds of the same feathers.

banks are confused to do real business
as they dint know what may happen next.

all these definitely are affecting economy



i pray God help Nigeria

Sanusi's reform still remains one that can always do more arms that good just as the writer said.
Looking at the Thisday news paper of Thursday 3rd DEC, it was written there that CBN(sanusi) wrote the MD of intercontinental bank to reduce salary and lay off some staff. Just as Sanusi(Almighty) will has it, 26 senior staff of that bank according to Thisday paper Friday 4th DEC, were asked to resign. insider information revealed that more list is still being compiled.
This is the trend of Sanusi' banking reform. all banks have now choose to be sacking staff either as advised by CBN or for them not to be caught up in the mess.
what of increment in the ever growing unemployment figure in Nigeria.

God shall help us

Insert Quote

Salary slashing, staff sacking, eventual increase in unemployment of youth, increase in poverty level.

well, these are part of dividends of Sanusi banking reform.

i pray it is not too late before our eyes clear, our leaders wake up and God Almighty safes us

we are still WATCHING

Salary slashing, staff sacking, eventual increase in unemployment of youth, increase in poverty level.

well, these are part of dividends of Sanusi banking reform.

i pray it is not too late before our eyes clear, our leaders wake up and God Almighty safes us

we are still looking

Why posponing evil day??

Court adjourns indefinitely on Akingbola’s suit

National News Dec 1, 2009 By Innocent Anaba

A Federal High Court sitting in Lagos, yesterday adjourned indefinitely, further hearing in the suit by former Chief Executive Officer and Managing Director of Intercontinental Bank Plc., Dr Erastus Akingbola, who is seeking to have his sack by Central Bank of Nigeria (CBN), reversed by the court.

Trial judge in the matter, Justice Ibrahim Auta, had to adjourn the N50billion suit against the CBN and its Governor, Mallam Lamido Sanusi, following agreement by counsel in the matter that since the CBN had appealed an earlier ruling of the court to hear the preliminary objection alongside the substantive suit, it would serve the interest of justice to await the Court of Appeal’s decision on the matter.

The trial lower court, it will be recalled, had, in October, decided to hear both the substantive suit by Akingbola alongside the preliminary objections by the CBN and its Governor challenging the suit together, noting that hearing the two applications together would save the time of the court and ensure an effective and factual determination of the case.

CBN had in the preliminary objection, argued that Akingbola lacked the locus standi to maintain the action and that the court should decline jurisdiction because the former bank chief disclosed no cause of action to warrant maintaining the suit.

But the CNB has appealed against the ruling of the court before the Court of Appeal, Lagos.

Akingbola, in the substantive suit, had applied for a judicial review of the CBN’s decision to relieve him of his job as Intercontinental Bank’s MD and also claiming the sum of N50 billion as damages for his purported removal.

Sunday, November 29, 2009

Bank Crisis: How CBN Directive, CEOs' Scheming Propel Mass Sack


Unions Tackle Sanusi
By Marcel Mbamalu

DESPITE Federal Government's directive to the Central Bank of Nigeria (CBN) to stem the wave of mass sack in banks, a contrary order by the apex bankÕs management is brewing trouble in most of the financial institutions.

As the last count, at least 1,000 workers within the rank of banking officers and above in two banks (one cleared as healthy and the other rescued) alone were either sacked or asked to resign in the last two weeks.

This figure excludes the thousands reportedly pencilled down for sack in the other 22 'healthy' and 'troubled' banks still grappling with economic crisis.

The Federal Government had reportedly asked the CBN Governor, Sanusi Lamido Sanusi, to intervene and put an end to arbitrary retrenchments in most of the banks, especially the eight ÔrescuedÕ ones.

But the apex bank, in an October 28 memo to the Managing Directors of the embattled banks, directed them to, among other things:

"Reduce executive and other staff emoluments by at least 30 per cent and submit an action plan for branch and staff rationalisation (reduction) in order to utilise some hidden economies of scale in the bank's operations."

This directive is said to have given impetus to new policies that pencilled down thousands of workers for retrenchment.

Industry sources have, however, expressed concerns that while governments all over the world work hard to encourage employment and are measured by the number of jobs created, the current reforms in the Nigerian banking industry encourage chief executives to sack workers with impunity.

The two workers' unions in the industry , the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) and the National Union of Banks, Insurance and Other Financial Institutions' Employees (NUBIFE) , are worried that their members are made to pay the price of the ongoing reforms in the sector.

General Secretary of NUBIFE, Ola Elijah Segun, described as unfortunate the reform process that could lead to mass sack in banks as unfortunate.

"That has been our predicament in the banking industry. Workers are usually at the receiving end of any reform. No matter the nature of any reform, at the end of the day, you will discover that the workers are the victims.

"When they recapitalised, we were at the receiving end; when they re-engineered, we were at the receiving end; they are now sanitising, and we are also at the receiving end, despite the fact that we are not privy to the perpetration of the so-called atrocity in the industry. So, it is very unfortunate that it is happening this way," Ola said.

Secretary General of ASSBIFI, Mr. Jarvis Erhemosele, has asked the CBN Governor to tread the path of caution in his management's action in the banks.

In the Central Bank circular, signed by one Thompson Sunday on behalf of the Director of Banking Supervision, the new CEOs were also instructed to submit plan of action for cost reduction and enhanced revenue generation for the next six months terminating in April 2010.

The directive was ostensibly making reference to situation reports presented to it by the newly appointed managers.

The apex bank, therefore, asked the CEOs to comply with the directive of the CBN in Special Examination Report by increasing the bank's total provision for loans and other known losses and publish the full results not later than October 31,2009.

The CBN also requested them to recognise any additional diminution in the bank's warehoused shares in its books latest by October 31, 2009.

Sources in some of the affected banks said that the directive to trim down staff strength and emoluments, coupled with the scheming by the new chief executives to do away with old staff and bring in new loyalists, has compounded the employment situation in the banks.

A source in one of the cleared banks, however, argued that it was not the duty of the CBN governor to direct banks on issues of employment and retrenchment.

The source, who is head, Corporate Communications at the bank, said that, as a regulator, the governor could only advise the banks on matters of employment, especially as the financial institutions are going concerns and should determine, by themselves, the best cost-effective means of doing their businesses.

"The CBN is a regulator and it will be wrong to expect the CBN Governor to determine the size of workforce for the banks. I wouldn't know for the rescued banks, but that does not obtain in a normal situation," he said.

He noted that the issue of cost of operations had been in the front burner even in the days of Professor Chukwuma Soludo as CBN governor.

The Guardian also gathered that as the Chairman of the Bankers Committee, Sanusi's maiden meeting with bank chiefs dwelt on issues of operational cost and tried to proffer solutions to duplication of costs for banks operating on the same streets, for instance.

The meeting, held shortly before the CBN August 14 sack of five bank chief executives , Okey Nwosu of Finbank, Barth Ebong of Union, Erastus Akingbola of Intercontinental, Cecelia Ibru of Oceanic, and Sebastine Adigwe of Afribank Ñ also explored the possibility a concentration of banks in an area sharing generators and bullion vans.

But insisting that the wave of retrenchment in the nationÕs banking sector has nothing to do with reducing cost but a mere ploy by the new chief executives to eliminate (by substitution) a handful of staff perceived as not being loyal to them and the new trends represented by their regimes, ASSBIFI scribe, Erhemosele, argued that, in most cases, the sacked workers are replaced with cheaper hands and cronies of the new chief executives.


http://www.ngrguardiannews.com/news/article03//indexn2_html?pdate=291109&ptitle=Bank Crisis: How CBN Directive, CEOs' Scheming Propel Mass Sack

Fasehun: 'Sanusi Neither Considers The Economy Nor Banks' Shareholders'

* Being the text of a speech delivered by Founder and President of the Oodu'a People's Congress (OPC) during a press conference at Century Hotel, Okota, Lagos, at the weekend.

I called this Press conference to review the Central Bank of Nigeria's recent action against some prominent banks, bank executives and their investors. Of the 25 banks that survived the mandatory N25 billion recapitalisation, the CBN Governor has declared five insolvent and incompetently managed. They are Union Bank, Afribank, Finland Bank, Oceanic Bank and Intercontinental Bank. The banks were said to have been owed bad loans totalling about N747 billion (about $5.1 billion).

Governor of the Central Bank, Mallam Sanusi Lamido Sanusi, said he has injected N420 billion (about $2.6 billion) to bail out the affected financial institutions.

But many Nigerians like me cannot forget the fact that just last March, Vanguard Newspapers exclusively reported that some faceless interests planned to take over five banks. Initially, we took the story with a pinch of salt. But the benefit of hindsight has bestowed upon that Vanguard's report an uncanny degree of accuracy, because not only did it pinpoint the five target banks to be disgraced, it also identified the future CBN Governor that would undertake the job.

Now that the newspaper's prediction has materialised, the public will like to know if this whole affair were not a carefully scripted secret agenda. In the light of the newspaper's accurate prediction five months ahead, can we resist the urge to say that these banks and their executives were simply sitting ducks for a well-schemed frame-up."?

Apparently, this insinuates that the CBN has not told us the whole story. Our private investigations, for example, showed that the Federal Government itself owes Nigerian banks about N3.2 trillion (about $220 billion). These uncleared government debts certainly compounded the problems of the banks. The Government also owed local contractors over N1.5 trillion; many of these represent loan obligations these contractors have been unable to discharge.

So, does the government really have the moral right to cast stones? It would be wiser for the Federal Government to lead by example and first liquidate its own debts before pointing fingers at "fellows partners in debt." Maybe for all these unpaid government debts, the CBN should go ahead and hand over the Accountant-General, the Auditor-General of the Federation and the Minister for Finance to the Economic and Financial Crimes Commission (EFCC) as well.

Curiously too, all the loans that the CBN has taken to the cleaners are private loans. What about the various bonds and loans that State Governments sourced from the capital market and the banks, why has the CBN not addressed them?

Moreover, what is wrong with borrowing? The United States is the world's biggest debtor with trillions of dollars indebtedness to virtually every institution including the World Bank, the International Monetary Fund (IMF) and even the United Nations. Its whole economy, like those of other developed nations is built on credit. This is because no nation develops or industrialises with 'cash-at-hand'. There is no way young men like Jimoh Ibrahim, Femi Otedola, Pat Utomi and Aliko Dangote employ the great number of people they have employed without solid bank backings.

Curiously too, we find that the five indicted banks are headed by Southerners. In view of this, we will caution the CBN to refrain from fanning the embers of Northernisation, which the Umaru Yar'Adua's administration appears to be pursuing since inception.

Sanusi has remained unapologetic and unrepentant of his ethic chauvinism. In the past, he has said of the Igbos, in a newspaper article titled, "Issues in Restructuring Corporate Nigeria," that: "The Igbos themselves must acknowledge that they have a large part of the blame for shattering the unity of this country."

Having said that this nation must realise that Igbos have more than paid for their foolishness, he said in the same piece: "The Yorubas, , the greatest obstacles to nation-building, are the Yoruba Bourgeoisie, I say this also to underscore my point that until they change in this attitude, no conference can solve the problems of Nigeria. The country cannot move forward if the leadership of one of the largest ethnic group continues to operate, not like statesmen, but like common areas boys."

And on Afenifere he declared: "A Syllabus of Errors, , the problems of this country have a lot to do with the shift in power away from the Fulani to individuals like Babangida and Abacha, products of lower cultures. The Fulani of the North, proud of the history of the establishment in Nigeria - Ahmadu Bello, Murtala Mohammed, Aminu Kano, Shehu Yar'Adua, Shehu Shagari, Jibril Aminu. They are sad that other Nigerians do not know the difference in ethnic background between say, Murtala Mohammed and Ibrahim Babangida."

Information at my disposal also showed that the between January and April this year, all the banks borrowed N8.7 trillion from the CBN, the country's lender of last resort. That makes all the banks equally liable.

So, if the five banks under investigation borrowed only N800 billion out of the gross N8.7 trillion released by the CBN, which other banks owed or borrowed the balance of about N7.9 trillion? Why have they been spared? And why should the CBN deal with a general problem instalmentally? Let the CBN tell the whole world where its N8.7 trillion went.

The CBN Governor should have handled the present scandal administratively and internally. Financial markets are naturally fragile and sensitive and require the apex bank's reinforcement, and not erode confidence.

The CBN Governor should be temperate and mild, and his first line of action should have been to give the affected persons the benefit of doubt. After all, these executives have not been accused of personally embezzling the funds in question. It is rather unfortunate that the CBN is criminalising routine commercial transactions.

Granted that the Central Bank carried out an independent audit of the banks, it should have followed due process by inviting the bank executives to defend themselves about the result of such auditing. CBN should never have gone public ab initio.

Moreover, the steps taken so far raise fundamental questions. As the Federal Government has released N420 billion to the ailing banks, do we regard the injected fund as a loan to be repaid or a grant to prepare them for the government's virtual take-over? Where does all this leave the shareholders? Who protects the shareholders and their interest especially in a situation where the Federal Government goes ahead to fulfill its threat to bring foreign investors to buy the concerned banks? Would it not make more sense to accord shareholders first-line bids? Or is the Government saying that the country, with nationals in leadership positions at the World Bank and IMF, cannot get suitable Nigerians capable to run the banks profitably? Moreover, we wrested our economic independence from foreigners through such policies as the Indigenisation Act, is it wise now to sell ourselves back through the backdoor to new foreign interests? Or could it be that the foreign interests are masquerading for faceless Nigerians? The shareholders have been completely ignored in the whole process, when they should have been called to an emergency meeting where they would have democratically elected another Board.

Well-meaning Nigerians like me hope that the Federal Government does not produce a paradoxical result from this unilateral bank regularisation scheme. The entire episode smacks of an exercise designed to cut the nose in order to spite the face and this is dangerous.

The affected banks are employers of labour, having at least 5,000 branches and well over 100,000 people in their employ. In the light of this confusion, the employees' job security cannot be guaranteed. The agitated economy will provoke capital flight and inflict greater damage on the economy than whatever misdemeanours these bankers may have been accused of. Because many of these beleaguered bankers originally founded the concerned banks, their present travails can discourage future generations of investors.

Rather than sack the bank executives, CBN should have borrowed a leaf from other economies that have similarly bailed out their mortgage, stock-broking, banking and industrial institutions. President Barack Obama injected $700 billion into corporate America and allowed the executives to continue in office. The only debate was whether benefiting American executives should take a cut in their usual fat allowances in view of the injection of public funds. The debate is still going on. I entirely condemn the detention of the bank chiefs by the EFCC. They should be released to enable them work out creative and feasible modalities for revamping their banks and liquidating the offending loan facilities.

Banks may have problems but the CBN appears to have over-amplified the situation. The world over, financial institutions are going through a rough time. In Europe, Asia, America, Australia and other parts of Africa, banks have failed. This was what gave rise to the global economic meltdown. In fact, prior to the CBN exercise, the Nigerian economy was the envy of the world. And experts internationally commended the last administration and the banks for the foresight in recapitalising our banks. But if Nigerian banks fail now, the explanation may simply be that finally, the Economic Meltdown has caught up with our banking industry. How? Larger economies like USA, UK and Japan, most of whom have begun to look inwards for economic salvation, have forced their indigenes to reverse capital flight back home.

On the other hand, if this exercise was designed to please Mrs. Hillary Clinton, then we must point out that she has no way incited us against the rule of law. Like her, we all want an anti-corruption crusade, which we complained had become lukewarm and stale. But in hunting down these bankers, government has pointed the gun against wrong persons.

The CBN exercise is diversionary; it is insensitive; it is hasty, making respectable bankers and shareholders to become scapegoats unjustly. This is unacceptable.

Moreover, have we weighed the implications that this will have on our Re-Branding Project? Virtually, it has smeared the cr�me de cr�me of our economy - the Cecilia Ibrus, the Isyaku Umars, the Hyacinth Enuhas, the Raymond Obieris, the Chris Alabis, the Erastus Akingbolas, the Barth Ebongs and many more. This move indicts not just these bankers, but the public, the government, the shareholders, event he CBN. It tells the international community that even the best of us is a crook and a thief. And this is far from true.

Suffice to say that although some of these controverted loans are inexcusable, a lot of them would have performed if only government had delivered on key economic issues, including, stabilising the Naira, providing electricity supply, pushing through the amnesty deal to secure a viable bridgehead for profitable oil business in the Niger Delta, enhancing Nigerian's buying power by providing employment, ensuring good road networks, fighting corruption, resolving the crisis in the education sector, especially the ASUU strike and succeeding with the seven-point agenda.

On the part of the CBN, what needs its immediate attention are indices that will make the banking industry more attractive, more proactive and more productive, such as outlawing the use of young girls for marketing, taming the legal and administrative charges that usually balloon loans, establishing a regulatory framework for interests and stabilising the exchange rate.

In the present circumstances, the coercive organs of State should act independent of the CBN, which is wearing the toga of the aggrieved party. They way Sanusi speaks of confiscating assets, jailing people, etc, makes him the complainant, the investigator, the Judge and the enforcer. Such autocratic methods are strange to our democratic constitution.

The National Assembly, should as a matter of urgency, pass a motion requiring Sanusi to ensure that existing shareholders are given an opportunity to recapitalise the five banks within a timeframe of not less than 180 days. These banks are public companies owned by several Nigerians. They must not suffer double jeopardy. Their reemptive rights as existing shareholders, which is duly recognised by Companies and Allied Matters Act, Banks and Other Financial Institutions Act, Central Bank of Nigeria Act and the records of CBN must be protected and respected.

The National Assembly should pass a motion requiring Sanusi to follow due process and immediately revoke the removal order on any of the Executives who are not personally culpable. It is wrong to punish people who have not committed any offence. It is repugnant to equity, natural justice and good conscience to dismiss over 30 officers in one stroke without establishing individual responsibilities.

The National Assembly should compel Sanusi to exercise due care in all subsequent actions. The unnecessary drama and bravado accompanying the "reform" has caused a downgrade in Nigeria's credit rating and slowed down economic activity. We have seen other economies, which recently handle more complex and larger interventions in their banks in a more mature manner, without unnecessary costs on their economies.

Conclusion

In conclusion, let us remember that many of these bankers are well known locally and internationally by many institutions and many of them are advisors and consultants to nations and world financial establishments. Nigeria needs them for her own good. They may have made some erroneous judgements, but they do not deserve to be so summarily destroyed; for one experienced horse rider who falls is more valuable than a tenderfoot just learning the ropes. Consequently, we detest the rubbishing of these first-class bankers and we demand their immediate release.

If politicians have been allowed to learn from their own mistakes, bankers and the managers of our economy should not be crucified for making sincere errors in corporate governance.

Culled from the Guardian online: http://www.ngrguardiannews.com/business/article01/indexn2_html?pdate=060909&ptitle=Fasehun:%20%27Sanusi%20Neither%20Considers%20The%20Economy%20Nor%20Banks%27%20Shareholders%27

Where are madam oceanic evidences to her claims. Though, as a person i dont trust this sanusi man. Well, we should just continue praying.

CBN Intervention In Banks
'Lamido Sanusi Should Stop Behaving Like Dictator'

Even from the tone of his voice, it was clear that Frederick Fasheun, founder of the Odu'a Peoples Congress was still very upset about the method used by Central Bank governor, Lamido Sanusi in reforming the nation's banking system. While many remained mute in the face of the gale that swept through the banks, Fasheun mounted a vociferous campaign in the media against the modus operandi adopted by the CBN helmsman. Fielding questions from ARMSFREE AJANAKU ONOMO, he explains why he is staunchly opposed to how Sanusi has gone about the task of repositioning the banks. Excerpts:

In the various publications your have put out on the ongoing reforms by the CBN, you didn't say much about the interest of depositors; what is your position on deposits who would have lost their monies had the banks been allowed to crash?
I said the banks and their services should not be disrupted, and that if their services were going to be disrupted, the shareholders must be consulted first. Those banks belong to the shareholders, the investors; if you are going to remove their chief executives, you must inform the shareholders because the shareholders put those directors there. You cannot come from nowhere like a dictator and just seize their properties and arrest and detain their executives unconstitutionally. I know the CBN governor commands enormous powers, but those powers require somebody that will be temperate with his sentiments, and somebody that is apolitical, who would not hurt the unity of the nation. Those powers require somebody who will put the interest of the shareholders in view. Here, the CBN governor came in, and instead of working to ensure that confidence was not eroded in these banks, he did otherwise. And he thought that his actions would only affect the banks, but his actions are now affecting the nation; the economy is prostrate. If Nigeria's economy was very strong, it would have accommodated the battering; but the economy is nothing to speak about; this is why I thought many things were happening to the economy through the actions of the CBN governor. I am not saying the Central Bank has no powers to regulate; I am not saying that, but I am saying that due process was not followed.

Knowing that some of the banks were said to be structured in ways that made individuals, especially the CEOs too powerful and domineering, how does your position protect the interest of the depositors, especially poor and ordinary people, whose monies the CBN governor said he was trying to protect?

He should have adopted due process to settle that crisis. His taking over the banks does not say that he was defending the interest of the common man; it doesn't. If anything, he has endangered the interest of the common man; who went into these banks and bought shares at maybe N44 for Union Bank; N33 for First Bank, and now, Union Bank shares have plummeted to about N6. How has he defended the interest of the common man on the streets; he has actually destroyed the common man whose retirement savings were put in these banks. We are saying that he shouldn't have thrown out the baby with the bathe water. He should have adopted due process and the rule of law to achieve what we want him to achieve. Nobody would say the chief executives were angels; we are not saying that because there are no angels in Nigeria.

He (Sanusi) was coming from First Bank; I hate the concept of 'holier than thou.' He came to the Central Bank from First Bank, and in just five months, he found faults with banks that had existed for decades, and like a bull in a china shop, he was destroying right, left and centre. I want Nigeria to be re-ordered, I want Nigeria to be governed under the rule of law, which we have been mouthing. It is governance under the rule of law that will make us attain democracy; but here is a Central Bank governor who commands enormous powers coming in and throwing his weight all over the place. As a matter of fact, a few days ago, I was astounded that this youngman has not been castigated by the government, when he said that if he had the powers, he would tie these bank executives to the stakes and shot them. For God's sake, what do you expect people to think of Nigeria outside our shores; if somebody who commands such enormous powers can say that he will tie bank chief executives to the stakes and shot them, Who is he? We thank God that he doesn't have those powers. Should he not be mild? It is a reflection of his mind; the Central Bank governor should have a settled mind. If Yar'Adua didn't have a settled mind, Nigeria would have been in problems.

Are we not in problems already?
We would have been in greater problems, but he (Yar'Adua) approaches his work with good sense; he has a good head, screwed well on his shoulders. Nigerians think the young man (Yar'Adua) is slow, but slow and steady wins the race.

In one of your advertorials you asserted that none of the affected banks failed to meet obligations to depositors; should the regulator have waited for a full blown crisis before intervening?
A few weeks before (Sanusi) Lamido's action, all of these banks submitted their reports to the Central Bank, and the CBN commended them; Intercontinental and Oceanic were commended and they were preparing to pay handsome dividends to shareholders; where is the evidence of depression? I think when you put a square peg in a round hole, you get into this kind of situation. Look, financial markets are by nature, fragile. So you don't bring in somebody who is intemperate and maniacal to manage such a place. Even then, have we seen any of these banks collapsing; despite all these infractions and abuse of human rights?

Nigerians want democracy, rule of law, and due process, but when people's rights are being abused, Nigerians keep quiet. Must they detain these bank executives beyond the constitutional time, which they may hold them before going to court? Many of them had their rights abused; let us be honest, we have not been told that any of them committed personal offences, it was implied. None of them has been accused of stealing from these banks; I am not justifying the bank executives in their professional actions, I am only a doctor, I am not a banker, but viewing from the sides, I think their rights were abused. And the Nigerian economy was shaken almost to its roots, and the shareholders were denied their rights, and they (shareholders) have lost a lot of money now, while the Nigerian economy is virtually collapsing as a result.

You talked about bank CEOs not being accused of personal crimes; how about the CBN's revelations that loans were given to friends and cronies who had no collateral or intention of paying back; were these not substantial abuses to warrant action from the apex bank?

I am saying that only those that are capable of throwing stones should take that kind of action. He (Sanusi) was a bank executive; can he beat his chest and say he can cast the first stone? He should be able to cast the first stone. That is why I am worried about actions that can hurt the unity of Nigeria. We are emerging from one crisis into another crisis, and people who are in positions of power are creating different war fronts for the nation, and yet Nigeria wants unity, progress, growth and development. The greatest ambition of Nigeria is to achieve peace and unity, and this is very very far from us. For the Nigerian people, when two elephants fight, it is the grass that suffers; the common people, the shareholders, and the retirees are the people who are suffering, not the people in the National Assembly; those characters are very comfortable. They (MPs) don't need to invest in banks or buy shares, and when they do, their shares are in millions. It is the interest of the common man that should be paramount in whatever we do when we are in positions of power. If any of the chief executive has been found to have violated the law of the land, he or she must be made to face the music, but that music must be played with due process. We are now saying we thank God that the judiciary is finding its feet, and at the same time, we detain people beyond the constitutional stipulated time. Those leaders who mislead us and hurt our unity must be called to order.

You seem to see the CBN's action on Unity Bank as a mere slap on the wrist; the apex bank argues that the bank does not have the same corporate governance issues, which the others whose CEOs were sacked had; what is the basis for your position?

Unity Bank had been given N70 billion prior to all these crisis, and nobody heard anything about that, and nobody maligned Unity Bank as a result of that under-the-table loan. Please, don't get me wrong, I am not saying the CBN lacks the powers to regulate the banking industry, it does. But it must regulate with the rule of law and due process. We have been told various stories by the CBN governor about corporate governance, lack of liquidity, and so on. But for God's sake, some of these executives were the pride of the Nigerian banking industry, they were advisers to various world bodies in the financial sector. If anyone thinks some of our best bank executives are criminals, you are telling the whole world that Nigerians are criminals. If the best of us are criminals, then we have no claim to righteousness, and we know it is not right.

Papa Ola Vincent commented on the situation, and if anybody has a right to comment on the banking crisis, nobody has as much right as Papa Ola Vincent, who served this nation meritoriously in the banking industry. During his time, there was no crisis, and he sustained the beauty of the Nigerian economy; why wouldn't people who came after him learn from his method. Was it that all the banks during the tenure of Papa Ola Vincent were buoyant, and there was no crisis? He (Sanusi) based his action on the audit report; fairness, rule of law and due process would expect that after auditing these banks, he should have called the Directors and tender the audit report before them, so that the chief executives can defend the report, but he didn't do that; he just went for them. Does he have power of arrest; does he have power to detain Nigerians? Does he have powers to offer Nigerian banks to foreigners; does he have powers to disregard the wishes of the shareholders? These are questions Nigerians should ask him; I have nothing against him, what I am against is his method. And it can happen to anybody; if you take over banks created by private individuals because you are a powerful CBN governor, Nigerians who have money will be frightened of going into that sector of our economy because some CBN governor will come and take over the banks they have sweated for, and just offer them to Indians and South-Africans. We have not started seeing the effects of his actions; which are buried in the bowels of the future. And of course, Nigerian leaders come, they perform their nefarious services to the nation, and they get away. That is why leadership in this country is a rare commodity because we do not sanction poor performance; we do not complain about poor performance of those in office. Somebody who is the head of the Central Bank should be apolitical, or at best mild.

Talking about the enormous powers of the CBN helmsman and how those powers are exercised, shouldn't we be blaming the National Assembly for passing a CBN Act that provides such sweeping powers? Sanusi actually used the CBN Act to justify his decision to give N420billion as bailout to the first five banks, saying his action was lawful.

That was unconstitutional my dear friend. What is lawful about that? Anything that is unconstitutional cannot be lawful. Now, a youngman came into our Central Bank and in three months, he prints N420 billion; do you know the effects of that on the economy. He printed N420 billion without mentioning it to the National Assembly, what type of lawfulness is that? He printed N420 billion, and to the first five banks he indicted, he distributed only N100 billion amongst them. I then ask the question: what happened to the rest of the money? Was he waiting to distribute the rest of the money to banks that would fail? He had prophesied that Nigerian banks are prone to failure; so it was like he was saying 'these banks will fail, so let me keep the remaining N320billion to give to those who are sure to fail.' When you are working to the answer, which you already know, it is very easy to ask questions. I don't think that that huge sum of money should be pushed into our economy like that; that money is not related to any form of productivity, should it not be related to productivity. So, what would happen to inflation; it will spiral. I know the CBN has its own board, but obviously, the board has been intimidated out of action, and all of them (board members) would be guilty in history, if they don't speak up now. Let us know where they stand; or is he the only one constituting the board of the CBN? No, but to leave him behaving like a bull in a china shop, is untenable, and does not portend good for the future of the economy, and the unity of the country. Before I started the main body of my criticism, I gave his background, so that Nigerians would know. A CBN governor speaking from the hill, whose thoughts and words are cascading down the hill to those in the plain. A CBN governor who thinks the Yoruba people, especially their politicians were behaving like area boys, not like statesmen. A CBN governor who thought that (former President Ibrahim Badamasi) Babangida was a person of lower culture, Babangida of all people. It is only Lamido Sanusi that can make that comment. Much as we disagree with what Babangida did to us, not many of us think, or agree with Lamido Sanusi that Babangida is a person of lower culture.

You just described Yar'Adua as a more temperate leader; from what you are saying, does it mean he did not really know Lamido Sanusi before appointing him CBN governor?
I have said it several times that this young man Yar'Adua, good as he is personally, is governing this country with impunity, I have said it several times. I have had occasions to write to him (the President); when he came to the Presidency, he chose a Secretary to the Federal Government. That was a man known to have injured the sensibilities of a big section of this nation. I personally called his attention to that, that he should not hurt our sensibilities, and he did nothing about it until the man showed him his spots. So he acted after personal experience. When he came in and the Niger-Delta problem started festering, we called his attention to it, and we said; 'look, we have been to the creeks.' As a member of the Coalition of Ethnic Nationalities of Nigeria, I knew what was going on. I wanted him to have a benefit of my experience, and nobody listened, until a civil war was breaking out, and we now started talking about amnesty, a paradoxical term because you only grant amnesty to people you have conquered. But we are all interested in peace, so whether amnesty is true in meaning or not, let us agree it is going to bring peace to this nation. And when some committees were also set up for the Niger-Delta, we also drew his attention to his appointment of people who had made snarling comments on the Niger-Delta, he appointed (Ibrahim) Gambari to head that committee, and of course, we told him that was wrong. It was until those guys started blowing up various places that he change the appointment. When he appointed the then Minister of Finance from Kano, we gave him ovation, because Shamshudeen Usman is a decent youngman. But when he appointed the Economic Adviser and the Governor of the CBN from the same Kano, of course we had to complain. Our constitution talks about Federal Character, but he didn't bother about our complaint; maybe he didn't even read our letters. And then he appointed (Rilwan) Lukman who had been serving in the NNPC for his whole life, and after all, Lukeman was not from the Niger-Delta; he needed to appease the Niger-Delta, he didn't do that. Lukeman was Minister of Petroleum Resources, and then he appointed another man, a Yar'Adua (Abubakar) to be MD of NNPC, and we called his attention to it, in black and white, and he didn't bother. That is what I call governing with impunity, not reading through our constitution. It is just that Nigeria is a very resilient country, with everybody running after his daily bread, so we have no time to think of all these impunities. Otherwise, people would have been challenging this youngman left, right and centre. But he is a lucky man, and as a person, he is a gentleman, however, he has surrounded himself with these hawks who are misguiding him. Did he recommend the detention, without authority, of the bank CEOs? He couldn't have done that, and I remember that he succinctly called for order. Being a mild President of a nation in a state of flux, he called for order and good sense. People should govern with good sense; they should realise that Nigeria is not a nation, Nigeria is a conglomeration of nations. We were (forcefully) brought together; some nationalities did not even sign treaties. That is why we have been agitating that the togetherness of Nigeria is desirable; but it must be worked for. Now, we are just taking things for granted; Nigeria is not a constitutional thing, it is geographical expression, like Chief Obafemi Awolowo said. And even Sir Ahmadu Bello himself said it. Most of all these problems facing Nigeria can only be settled at a Sovereign National Conference (SNC), but unfortunately, despite agitations since 1992, the powers that be have refused to allow an SNC because they are frightened that an SNC may splinter Nigeria. Far from it, it is the other way round; an SNC will only strengthen and unify Nigeria.

In this campaign against what the CBN governor is doing, what is your motivation, and who is funding it; are there organizations giving you support to do what you are doing?
If anybody knows any organisation backing me up, he should speak up. I crusade for social justice, and I don't care how much it costs me, when I can no longer afford it, I stop. When I could afford it, I spoke. When I could no longer afford it, despite the fact that I still had facts, I kept quiet. When I founded the OPC, people thought I had taken money from somewhere, but now people know that I did not take money from anywhere. I founded the Movement for Social and Economic Justice, and people thought I must have been accumulating dollars from foreign countries, but now, people know that I didn't take a dime. When I created a few things for the OPC, people thought it was the Yoruba governors, and I am telling you, no Yoruba governor has given us a Naira. When you are crusading for social justice, you don't care about how much pain you go through, and that is me. Nobody has been funding me, and if anybody says he has been funding me, he should come to the media to announce when, how, and what he did to fund me. I assure you that nobody has been funding me. You media people should have a dossier on me by now! Not even internally; I don't take a kobo from anybody internally, let alone externally, and I am very proud to say that. I am not a rich man, but I am not uncomfortable. I am only uncomfortable with people who are hostile to social justice. Let us all crusade for social justice, so that Nigeria will be a happy place for all of us.

What is your take on the controversy over deregulation?
If indeed there was a democratic government in Nigeria, it should listen to the people. Democracy is the wish of the majority, no matter how wrong-headed; where you don't listen to the wishes of the majority, you are working against the interest of democracy, and that is dictatorship and authoritarianism. I think that government should listen to the people.

Moving towards 2011, and with the pace of electoral reforms not so encouraging, how do you see the future of Nigeria?
I am worried about 2011, I hope and pray that the people in power would change their hearts of iron, so that Nigerians can go into the elections in peace. If that election results in crisis, we will have ourselves to blame because a former Chief Justice of this nation has made recommendations on how to conduct our reformed election. And that is one of the reasons why I said that Yar'Adua is governing with impunity; instead of subjecting the recommendations of Uwais to a plebiscite, he single-handedly edited it. I don't think that is good for this nation. He should have allowed Nigerians to debate the recommendations of the Uwais committee. Through the snippets we have read in the papers, we think the main recommendations must be a beauty. It should be released to the generality of the people; that document belongs to Nigerians, and it should be made available to Nigerians to criticize. That is the danger of an almost one party system, the PDP has become so gigantic that it can do what it wants, without fear or favour from anywhere. And unfortunately, the progressives have scattered themselves into various progressive groups. They cannot find themselves as progressives in a progressive party? They have splintered into various "progressive" parties. It is very unfortunate, but that is what you get when you are running a wrong party system.



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Fellow nairalanders, one question we need to first answer is. Is bad loan the same as non-performing loan. NO.
N74m bad loan if it is true means there are still huge some under non-performing loan.
When a loan account does not witness inflow or repayment for a period of 3 months 10% provision is made for it and it is classified as substandard. 6 months 50% provision is made and it is classified as doubtful or non performing. 1 year it is regarded as lost and thus become bad loan 100% provisionis made on it,
No bank is without bad loan or non-performing loans. All these so called healthy banks have huge figures too but cbn has decided to hide it from us. All these will be known in due course.

You remember the news sometime last month about how sls advised some md's to withdraw from the discount window of cbn before he striked.
Let's wait as courts rule on these issues.
We shall continue praying for better nigeria. Better economy. And fire burn the bad people.

Mike is my idol.

When is he returning oceanic , intercontinental , bankPHB and others. I know there shareholders to can recapitalise if allowed. Wuruwuru reform.

Otunba Mike has never been the chairman of etb. He was just a member. His sister is the chairperson. Sanusi only removed Mike jealously, and returned him back now shamefully. Let's continue watching.

Sls main targets are ibru and akingbola. Any other MD sacked are just cover up. The guy sanusi is oya (grasscutter). Truth will soon prevail. God is watching.

true talk.

Sanusi is just trying to avert or delay the judgement. telling the court to refrain or dismis the case.
if he knows that he has case, he should allow the judges to do their work. he should have even wished the judgement is deliver without waisting time.
, if his hands and mind are clean,
, and he knows that he has done the right thing.

God help us

at last.

Yaradua is Performing.

more of that

http://www.ngrguardiannews.com/moneywatch/article01//indexn2_html?pdate=281009&ptitle=Shares of troubled banks: Are they worthless papers?Wednesday, October 28, 2009

Shares of troubled banks: Are they worthless papers?
By Enitar Ugwu

THESE are not the best of days for shareholders of the troubled banks in the county. A look at the current scenario especially as regards the shape of the banks whose managements were removed by the Central Bank of Nigeria recently, will be shocking. This is because during the consolidation era, shareholders had invested in these banks, and as the boom era set in, they made quite lot of profits.

Those days, some even pointed at these shares as their retirement funds.

All these were before the pronouncement by the CBN Governor Sanusi Lamido to the effect that the shareholders in those banks have lost their investments.

It is very hard to take. Owing to this, The Guardian decided to sample the opinions of shareholders in the affected banks.

Speaking, Patrick Okure, who claims to be a shareholder of one of the affected banks, had this to say: "I invested so much in that bank, together with my wife. We believed in them, but now, not only that the value of the share is nothing to write home about, but also the CBN is saying we have no hope getting anything out of the entire investment. Where do we go from here?"

His is not an isolated case, as The Guardian discovered that most of the recognisable shareholders' associations have been meeting since the pronouncement by the CBN boss over the weekend.

The essence of the meeting, The Guardian gathered is to fashion out an informed response to the pronouncement.

A leader in one of the associations said that after the series of meetings, "we will come out with a statement.

He said that, even though the shares of most of the banks have depreciated in value, to lose the investment entirely, is another kettle of fish.

According to the apex bank, shareholders of the eight banks recently taken over by the Central Bank of Nigeria have automatically lost their investments in the banks.

The CBN Governor, Lamido Sanusi disclosed this while speaking at a policy dialogue organised by the Nigerian Economic Summit Group.

The banks - Union Bank of Nigeria Plc, Oceanic Bank Plc, Intercontinental Bank Plc, Afribank Plc, FinBank Plc, Bank PHB Plc, Spring Bank Plc and Equatorial Trust Bank Limited - were found to be in a grave condition after the CBN's audit of the 24 banks in the country, prompting the injection of N620 billion into the affected institutions by the Reserve Bank.

He pointed out that the result of the audit in the eight banks indicated that the non-performing loans of most of them exceeded their share capital, which resulted in a situation whereby their balance sheets had a negative networth.

"Their shareholders' funds were eroded from the provisioning for loan losses, leading to an erosion of their investments in the banks," the governor explained.

He said the sacked bank executives and shareholders that went to court challenging their removal and alleged take-over of the banks, failed to realise they are no longer shareholders of the banks going by the books of accounts of the institutions.

"It is the government (or rather, the CBN) that has provided the bailout that has a claim on the investments. But any other shareholder can emerge after the debts of the banks have been recovered.

"That is what the aggrieved shareholders and former CEOs don't seem to understand, which is why they even kicked against our debt recovery efforts that ordinarily will favour them," he explained.

He said the other set of people with claims on the banks are depositors and creditors, whose interest he said the CBN was doing everything to protect by not allowing the banks to fail.

"As far as I know, the so called key shareholders and bank executives that ruined these banks do not deserve a place again in the institutions but should find their place in jail or even be shot dead," said Sanusi in an emotionally laden voice.

He pointed out that the shareholders have been affected by the grave situation the banks were plunged into.

Sanusi said for some of the banks, the percentage of non-performing loans to total loans was nearing 50 per cent and that these represented loans tied to the capital market that has lost about 70 per cent of its value.

The CBN governor disclosed that one of the banks had non-performing loans of over N300 billion and that the CEO of a particular bank wired £13 million to himself without any transaction to back it.

He, however, regretted that the audit was belated, adding that because of it the economy has been deeply affected by the negative consequences that has manifested in an acute credit crunch.

"The problem started as far back as October last year when some banks became permanent customers of the Expanded Discount Window, which was a symptom of a deeper problem.

"Any risk manager that didn't see that as a sign of a big problem is not worth being called a risk manager.

"The situation necessitated the audit of the banks when I became governor, and it was discovered that five banks accounted for 90 per cent of the borrowings from the expanded discount window. The rest is now history.

"What the CBN is after now is how to make the banks recover and perform their role of financial intermediation for economic growth and development," said Sanusi.

With the foregoing, the only hope for the shareholders appeared to hinge on the ability of the CBN appointed management teams in these banks, to turn them around for profitability.

It is only then that the shares of these banks may begin to appreciate thereby giving shareholders profits in their investments.