₦airaland Forum

Has GEJ refuted the names ?
Will u sit down and stay quiet as president while your minister of info calls u by names that r not urs.
What about the Ebele in his name.
Dora as an Igbo woman has done this on more than one ocassion.

The first time she did it was when she announced the desolution of the FEC.
Still she got re-appointed.

While I agree it is just a name, the only problem is that we come from a nation where anything  Igbo is unfashionable.
That is y we see people with names like Emeka Okafor, Chike Igwe, Nnana Dibia not being igbos.

Ok it is now more than a year SLS took over the helms of the CBN.
What we have is one step foward one step back which will lead to confusion, mismanagement and stagnancy.
Just like NEPA, Nigerian airways, NITEL, Ajaokuta all typically Nigerian.

It was easy for SLS and others to critisize the giant strands made by the previous CBN administration even with all its imperfections.
It is just a matter of time and people r going to recognise.

Sanusi has been deemed well vested in micro/macro economics to head the nations apex bank.

We should quit complaining.

Were are his employers ?

What is the opinion of the finance minister.

What is the opinion of his CBN board members ?

This is not Sanusis policies/ ideology.

This is Yar'adua/ GJ's policies.

Compare to OBJ who wanted to make Nigeria a market oriented economy, YD/GJ have veered towards a more socialist economy.

We will continue to see attacks and limits being paced on banks and the stock market.

The banks are going to be comatose in the near future. Banks will become deposit houses who give only short term collateralised loans who will only make profits from these lower loan levels.
We will continue to see a winding down in these banks as major investors pull out their funding.
Other financial areas which were to see a take of (as planed during the OBJ era) like insurance, mortgaging, investments and pensions etc will be taken down.
With banks no more an attractive venture, I predict further consolidation/ mergers till we go bank to 5 - 10 banks like in the 80's. They will depend on government deposits and loans for profits.
All major players in the stock market are going to be international banking institutions. We will then see increased capital flight as experienced in SA and Kenya.

Take a long hard look at Unity Banks and First Bank and you will get the picture of what banks are going to be .

udezue:
WOW!!! What a disgrace? Abians might wanna look towards Anambra for solutions.

And how is Anambra in a better shape ?
Tell me one thing that happens in Abia that does not happen in an equal or greater manner in Anambra.
This thread should've been titled "The Abia/Anambra tragedy"

The Igbos have totally lost out in the political arrangement of Nigeria.
When Ekwueme proposed the present geopolitical zoning structure at the constitutional conference during abachas regime , he was not aware that he has just applied the final nail to the coffin of his kinsmen. A trend started by his fellow kinsman Zik.

Ekwuemes motive was to give equal oppurtunities to minority tribes in Niger-delta and the middle belt.
But like Zik before him, Igbos have paid a heavy price in cash, kind and relevance.

When Ekwueme inuagurated Nigerias only National party (PDP) while others were interested in regional parties like AD and ANPP, Igbos embraced the party en-masse and the  party was eventually hijacked with Igbos generally sidelined.

The same can be said of Zik and NCNC with regards Bendel state and  the level playing ground given to areas like calabar, PH and co, this is after Awo had virtually starved the midwest of any development.

All the Igbos got was rejection and hatred from these areas with their properties seized and  these guys coniving with everyone else against Igbos.
Some these guys I know even prefer to identify with yorubas and hausas.

If Igbos know what is good for them they need to stay away from power, else they would pay dearly.

I will caution that our policy makers be careful about converting our reserves to untested currencies.
The dollar has its problems but on the long term is still the worlds reserve currency.

Even the reserves of the chinese is dominated in US bonds hence dollars.
We need to take a case study from Russia and Iran.

Russia denominated its reserve in rubles after criticizing the US for the dollar instability but ended up spending a huge chuck of its foreign reserves proping up the ruble when when the value of the US dollar skyrocketed against major world currencies and Russian exports fell to historical lows during the global recession.

The case of Iran is even more recent, due to deplomatic spats with the US,it the decided to shift away from dollar denominated bonds, moving towards the Euro.
In the wake of the Greece debt crisis, a huge chuck og their reserves has been decimated.
Even Nigeria had lost a bit by denominating part of its reserves in Euro b4 now.

Most countries have learnt a bitter lesson by deviating from the US dollar, I think it would be worth considering denominating our reserves in Gold instead.

This Yuan thing is a joke !
I guess same is the relative quality and exposure of our policy makers in CBN.

Ibime:
In Nigeria, [b]commercial banks were forced to take up Investment banking (and vice-versa) or lose their licence. [/b]That is not, and has never been the case in UK/US. We have many regional banks over here, mainly dealing with the day to day needs of their locality.

If your assertion is correct, we would see Commercial banks being pressurised to take up Investment banking by the authorities. . . . which is patently not the case. The fact is that GS was forced to take up Commerical banking licence in US because there is a difference in regulation between Commerical and Investment banks in US which does not apply in Europe. . . . in other words, The Treasury wanted to be able to keep an eye on Goldman.

I don't know if you are following the topic at all.

Ok, let us forget GS and focus on the issue.
The question is, does the US, UK, Europe or China have any rules which forbids a bank from operating on a universal capacity, like Sanusi is implying ?
Did the US or any country for that matter recently adopt any rule or legislation which restricts the scope of an individual banking operations ?

On Nigerian banks being forced to take up investment bank functions is a big lie.
The CBN only gave out banking licences on a universal capacity.
Whether u operate at all your available capacities is entirely up to the bank.

Mind you, universal banking is not only about commercial and investment banks only.

Ibime:
@ Roadstar,

No commercial bank has ever been forced to obtain Investment banking licence. Geithner and Vince Gables continuous calls to break up big banks is antithetal to the Universal banking model.

US Govt wanted some Investment Banks to become Commerical because commercial are subject to tighter regulation and restrictions. On the other hand, no commercial has ever been asked to take up Investment banking so your assertion is false.

Mr man, you're missing the point totally.
I never said US government forced all its banks to become investment banks. (neither do I see how that applies to Nigeria)
But they arm twisted the likes of goldman sachs to become more universal. (they initially being investment banks now had to take up commercial licences).
What I was trying to say is that Sanusi claiming that the universal banking model was being reversed is actually untrue, since investment banks were forced to take up commercial licences in US simple !
The Investment banking model is history in the US.
In Nigerias case the CBN is forcing hitherto universal banks to either take up specialised licences, which is completely in a different direction to what the US has done.

You need to do a major research into the banking models of the major banks in EU, UK and Asia including China.
They are primarily universal. That is my point.

ADint:
Goldman Sachs had to apply for a commercial banking license to be eligible to partake in the US Govts. bail out package - they would have gone bankrupt otherwise.

The fact is that the US government arm twisted Goldman (and any other investment bank) into taking a commercial licence.
By doing so the US has indirectly forced all banks to become more or less universal.

About goldman going burst, subsequent facts and comments from analysts including goldman themselves point to the fact that they just took advantage of the situation.

We all ought to be well informed in Nigeria, espedially our policy makers.

mbulela:
Universal banking parlance means banks becoming one-stop shops, offering a range of financial services - insurance, mortgage, stock broking, merchant banking, commercial banking and bureau de change - under one group. It was introduced by the immediate past CBN Governor, Prof. Chukwuma Soludo.

“If you read BOFIA, it says you can extend banking operations but excluded Insurance and stock-broking from the type of business, which banks can veer into,” he said.Noting that there was a bill for bank’s categorisation that never sailed through, Sanusi explained that what CBN is doing now is “to correct the wrong,” – just like in other jurisdictions like United States of America, which has also separated banking from propriety trading.

Universal banking is the prevalent model of banking in Europe, UK and emerging markets, after the recession, the US tilted towards universal banking (contrary to Sanusis comments) having abandoned their investment banking models prompting banks like Goldman Sachs to apply for commercial banking licences.

Banks like RBS are selling their non-core banking units but this is as a results of restructuring within the banking institution which is heavily indebted to the taxpayer and not as a result of regulation from the government.

With Barclays capital buying up the Lehman brothers investment divisions in US.

Sanusis above comment therefore is very misleading and far from the truth.

@Jarus, for the umpteenth time, I will request that you send me links to papers or columns he has written on economic issues.
If not can you stop misleading people

^^^^^^^^^^^^^
If this is really how hausas and yorubas (two of the biggest ethnic groups) do politics in Nigeria, then Nigeria has a long way still to go.

mekuszyx:
No Yoruba state aside Lagos is more developed that Enugu, and in terms of industrialization, Anambra and Abia trounce them, except of course Lagos which is not atypical yoruba state. New posters should endevour to look for existing topics similar to what they have in mind to post before exhibiting their ignorance. These things have been discussed over and over again.

I believe the topic is about igbo states and not yoruba states.

Thanks mr mekuszyx for your statistical input.

More contributions like that.

Deep Sight:
^^^ I believe you did not read my earlier submission on this -

1. The Third - Mainland Bridge Project predated the Babagida Administration though that administration completed its second half only.

2. Completing roads is the responsibility of every government.

3. If a Government therefore completes one road and through massive corruption and irresponsibility ensures the destruction, mutilation and non-maintenance of 100 OTHER ROADS, that government CANNOT claim an acheivement in the Road-Infrastructure sector AT ALL, as it now has a negative balance on that score. The best that can be said for such a government is that it completely failed with respect to infrastructure.

4. As Sagamite said - this line of reasoning will eventually lead us to congratulate the Yaradua Administration on the fact that road cleaners swept ONE road while he was president.

5. The legacy of corruption that IBB left Nigeria is incomparable. That legacy has ensured the siphoning of billions of dollars over the years allocated to road infrastructure. Summarily, the IBB regime is indeed the massive catalyst of the system that today ensures a dilapidated road infrastructure in Nigeria and consequently it is absolutely incongruous to single out ONE road and attempt to impose such as an "acheivement" in any terms.

I never said that IBB was a good leader, I am only trying to mention one achievement in his 8 yrs as president.

If it was that easy how many other leaders have completed such and enormous project of such economic importance.

Secondly I did not give him credit for Road-Infrastructure sector, I only said "3rd mainland bridge"

Even if he just completed the 2nd part, for a country where there have been countless failures (Ajaokuta, Refineries etc)

Road sweeping cannot be compared to 3rd mainland bridge. It is a 12km bridge for christ sake ! It is a mega-structure anywhere in the world.

I know you dont like the guy but u should have the ability to be unbiased and not try hard to de-empasize the size and importance of this project.

Give kudos to whom kudos is due good or bad.

OAM4J:
You and IBB should be ashamed of yourselves if all you could point to as achievement after 8years in power is 3rd mainland Bridge.

Sorry for bursting your bubble , I am not a supporter IBB but the topic talked about his achievements.
Third mainland bridge in the words of BBC is an "Engineering Masterpiece".

The best structure of immeasurable economic importance in Lagos.
Some of you should be able to disengage you hatred from facts and the issue.

Based on educated data,

The two states you mentioned (Imo and Anambra) consistently have one the lowest poverty rate indices, highest education rate, lowest child mortality rate.

Anambra is one of the few states with up to three economically viable towns (Onitsha, Awka and Nnewi) the other being delta state.

Development has many areas you know.

You need to explain what areas of development u are refering to.

The problem is a nationwide issue, the most developed state in Nigeria is Lagos state.

A city that is principally one big slum !

I think having a masters in economics or any finance degree for that matter makes you over qualified to be a CBN governor.
Lets face it we do not have an exactly sophisticated economy.
All we do is sell oil and distribute the money amongst a few.

Sanusi is right afterall because I was taught in elementary school that a bank is for depositing money and that alone.
So his only function will always be to protect depositor funds.

Well done Sanusi !

Imagine Lagos without 3rd mainland bridge
No useful project of that size has been added to this country by subsequent administration.

Who is Bode Mustapha and where was he when OBJ was gunning 4 third term ?

ADint:
Very funny . But are you saying someone that was a GM at UBA under Tony Elumelu is brainless?? An ED at First Bank?? And eventually CEO?? The guy was monstrously angry at the 'deposit looters' and understandably so, I don't agree with his methods and follow-on, but CBN as an institution has the capability within to chart a way forward if he chooses not to look outside. What he needs to do is to identify those within the CBN who can help him ring the changes in a non-abrasive manner.

Why dint they offer Elumelu the position.

When the dust on yar'adua death cools down, we would be able to do a detailed appraisal on his short tenure.
One area I will make objections is on the rationale of his appointments.

This guy might have as well engaged the services of an ex-service man to run the CBN.
Yar'adua really undid Nigeria and set a lot of bad precedences.

Sanusi's case is a sorry case of lack of credibility from start.
I personally don't see any nothern agenda played out here. (Except for the light case of Unity Bank)

But the manner of his appointment was questionable.
A serving CBN governor who started a project of mega-consolidation of banks was not allowed to see out his concept which had definately changed the face of banking forever in Nigeria.

1. There were a lot of Notherners calling for soludos head for the mare reason that they lost out in the banking sector reforms (For no fault of Soludo)
2. They were aggrieved when Soludo berated the northern elites for not investing in the banking sector and the Northern economy as a whole thereby impoverishing their people compared to their southern counterparts.
3. Even when it was decided that Soludo was to be removed there was intense lobbying from Northern interests in many of Naijas dailies , they seemingly made the position open to people of Northern extraction only.
4. Sanusi was selected but was not justified as the most qualified in his resume, either as an astute banker or Economists. This created a moral, authoritative lapse as many of those sanusi regulated, saw themselves as more knowledgeable than him. Unlike Soludo where only a few could dare match him based on his Economics credentials.
5. Sanusi did not even do himself any good, having had a history of being a radical writer and columnist on sensitive issues in the Nigerian political sphere.
6 And then we have the issue of the banking reforms and the resulting effects on the economy which to be fair was always going to happen, but he would have never been spared.
With the way things are going we all know that if JG runs in 2011 and returns to aso rock Sanusi's days are numbered.
Bouyed by the bad precedence set by Yar'dua and his clueless cabals.

Summarising, Nigerians might be taken as fools by the leadership but they are certainly not blind.
If Sanusi's appointment was a Northern agenda, why would you blame anyone thinking that his activities are a Northern agenda as well.

Sanusi's case is a sorry case of lack of credibility from start.
I personally don't see any nothern agenda played out here. (Except for the light case of Unity Bank)

But the manner of his appointment was questionable.
A serving CBN governor who started a project of mega-consolidation of banks was not allowed to see out his concept which had definately changed the face of banking forever in Nigeria.

1. There were a lot of Notherners calling for soludos head for the mare reason that they lost out in the banking sector reforms (For no fault of Soludo)
2. They were aggrieved when Soludo berated the northern elites for not investing in the banking sector and the Northern economy as a whole thereby impoverishing their people compared to their southern counterparts.
3. Even when it was decided that Soludo was to be removed there was intense lobbying from Northern interests in many of Naijas dailies , they seemingly made the position open to people of Northern extraction only.
4. Sanusi was selected but was not justified as the most qualified in his resume, either as an astute banker or Economists. This created a moral, authoritative lapse as many of those sanusi regulated, saw themselves as more knowledgeable than him. Unlike Soludo where only a few could dare match him based on his Economics credentials.
5. Sanusi did not even do himself any good, having had a history of being a radical writer and columnist on sensitive issues in the Nigerian political sphere.
6 And then we have the issue of the banking reforms and the resulting effects on the economy which to be fair was always going to happen, but he would have never been spared.
With the way things are going we all know that if JG runs in 2011 and returns to aso rock Sanusi's days are numbered.
Bouyed by the bad precedence set by Yar'dua and his clueless cabals.

Summarising, Nigerians might be taken as fools by the leadership but they are certainly not blind.
If Sanusi's appointment was a Northern agenda, why would you blame anyone thinking that his activities are a Northern agenda as well.

I would say Dagrin . (A young man cut down @ his prime)
Yar'adua was already dead to me, he died last December and it pained me then !

I have always warned about this Ojukwu guy.
Unfortunately he has a stranglehold on his people.

chidichris:
yes that will be the only option before he expose all the hidden programes of the last administration.
yar adua was on his way to making nigeria a real democartic country before they brought him down.
all the need there is a follow-follow person like soludo and not an action packed snausi.

Can you put out that thing you're smoking.

FG worries over CBN reforms…laments effect on economy
National News Apr 30, 2010

By Charles Kumolu

THE Federal Government appears to be worried over the reforms introduced by  Governor of the Central Bank of Nigeria, CBN,  Sanusi Lamido Sanusi, as Presidency sources said the reforms have had devastating effects on the economy.

A source in the Presidency, told Vanguard that the Acting President, Dr Goodluck Jonathan has continued to receive reports indicating that the policy introduced by Sanusi is strangling Nigerian banks and in effect devastating the nation’s economy.

Apart from about 23, 000 workers who are said to have lost their jobs in the banks since October last year, Nigerian investors, importers and manufacturers are said to be suffering because banks are no longer granting loans and other facilities that would help them carry on with their businesses.

Although government is said to be aware as well as worried over these developments in the past few months, latest report which shows that core investors in the Nigerian economy are now seeking for loans from foreign banks and other financial bodies was said to be responsible for government’s desperation to find a quick solution to the problem created by the CBN Governor.

Government is said to be considering the option of sacking Sanusi as a way to restore confidence in the system and has started making consultations with the National Assembly leadership on how to carry out the plan.

One of the companies that has been hardly hit by the Sanusi’s reforms is Dangote Group which may be considered the highest single private employer of labour in the country.

Dangote is said to have  approached Standard Bank of South Africa for a loan of US$350million to enable it attend to pressing financial needs, an action which was said to have made Acting President, Goodluck Jonathan comfortable.

Following the approach of Sanusi, who also got the Economic and Financial Crimes Commission, EFCC, to begin to harass and even threaten to arrest companies and individuals who obtained facilities from banks, Dangote Group was said to have been forced to hurriedly source for US$1.27billion which it used to settle loans it took from a consortium of 10 banks in Nigeria, even though the loans were supposed to be due for repayment by 2015.

After making such huge payment that was not envisaged, Dangote Group is said to be facing some financial challenges in its determination to erect cement companies in Ibese, Ogun State and Senegal as well as its expansion drive and prosecution of on- going projects at Obajana Cement Company.

The publications made by the CBN last year of companies and individuals that are indebted to Nigeria banks and the ways the matter was dramatised had made the Dangote Group to source for the loan to avoid public ridicule, even though CBN did not disclose that the loan was not yet due for repayment but rather listed it as unserviceable and thereby criminalising such transactions.

Apart from Dangote, many other companies are said to be seeking for facilities from banks outside the country. Another example is Eternal Oil which is said to have asked the Japanese Bond Market for a loan of N1.2billion.


http://www.vanguardngr.com/2010/04/30/fg-worries-over-cbn-reforms-laments-effect-on-economy/

texazzpete:
After that 'Obama' stunt she pulled, i struggle to see how anyone will take this corpulent woman seriously.

What has Obama issue got do do with NSE. 
She is expressing genuine concerns expressed by investors by way of their dumping banking shares.
and your busy mudslinging.
Can you please stay on the issue ?
This is not the time to rant senselessly.

Okereke-Onyiuke faults CBN's policy on margin loan
By Moses Ebosele

THE Director-General of Nigerian Stock Exchange (NSE), Prof. Ndi Okereke-Onyiuke, yesterday, blamed recent Central Bank of Nigeria (CBN) policy on margin loan for the dwindling state of banks' shares in the last one week.

The CBN had recently barred money deposit banks from accepting banks' shares as security for credits granted for trading in stocks in the Nigerian capital market.

Okereke-Onyiuke explained yesterday that immediately the policy was made public, the NSE came under series of verbal attack from investors, adding that the policy has really caused untold hardship for the market.

Addressing stockbrokers on the floor of NSE, Okereke-Onyiuke said angry investors are alleging that they have been short-changed by CBN.

Speaking further, the NSE boss said the policy has resulted in the dumping of bank shares, thereby forcing down the prices of stocks in the last one week.

According to her, the development recently led to a meeting between the council of the Exchange, CBN and the Securities and Exchange Commission (SEC).

At the end of the meeting, Okereke-Onyiuke said it was discovered that the policy is intended for stockbroking firms and banks.

Explaining further, Okereke-Onyiuke said individual investors both local and foreign, are eligible to use their stock holdings to borrow from the banks.

According to her, only brokerage firms are barred from using their share holdings to get facilities from the banks.

She explained that the CBN would in the next couple of days, organise a workshop, where the policy will be explained to operators in the market.

Meanwhile, Okereke-Onyiuke said the 24 per cent holdings of the Federal Government in Transcorp Hilton Hotel, would in the next two weeks be sold on the floor of the Lagos and Abuja Stock Exchange.

The Federal Government had about 45 per cent in the total shareholding structure of the Hotel situated in Abuja, Federal Capital Territory.

http://www.ngrguardiannews.com/capital_market/article01/270410?pdate=270410&ptitle=Okereke-Onyiuke%20faults%20CBN%27s%20policy%20on%20margin%20loan

The question is why is Sanusi so out of line with all the top finance and economic figures in Nigeria ?
Personally, I admire his energy and his insistence on priciples and ethics.
But it is not as easy as that else we wont need renowned economists as CBN goverors.
Although I think he means well ,his inexperience an inexposure together with his not very substantial educational backgroud has continued to let him down.

Jarus:
Bros, the passion with which you dey tackle Sanusi get as e be o

More seriously, I think I have seen this your question answered by Ibime before. We cannot use Babalola's, and more ridiculously, Gusau's statements as vote of no confidence. So I don't know the government of the day that has passed VONC on him. If anything, from Sahara's investigations, they said even though those around GJ may not be comfortable with SLS, GJ himself is Ok with him. No VONC has been passed on him, especially when it is clear that Gusau's 'VONC' was out of some selfish interests.

Even though presidential support for SLS has waned since the exit of YRD, If I were Sanusi, I'll still not resign, because doing so makes him a coward and a lot of people will vilify him for abandoning his project mid way. I will continue undeterred and do my job in the best way I know, not minding what the corrupt cabals that fed fat on the status quo want. If I'm removed, I'll still emerge heroic, after all, despite the spurious manner Ribadu was eased out, he still remains a hero in many Nigerians' books.

You discredit comments from people n government and the Nations top economic officials for SaharaReporters investigations.
Na wah for you o !

EzeUche:
It just warms the soul when I see 'Niger Deltans' at each other throats. We Igbos will sit back and watch the cookie crumble.

This is a very unfortunate statement
In my view it is very difficult to divorce the Igbo and ND issues.
There are an appreciable number of Igbos in Delta state not to talk of SS as a whole.
Considering the fact that parts of Imo and Abia are parts of the ND even makes the above statement even more devoid of thought !

Rather than the government publicly critisizing Sanusi ( if that is the case) he should be admonished and advised to taper down his rheotics and dogma.
Changing the CBN governor after another 5 years is not advisable.
Dead yar'adua government had made that mistake with Soludo, we shouldn't do it again.

An economy should be run by an economic committee and not a single individual.