CBN Governor and his Islamic Banking

FAILED BANKS: Not yet "Uhuru"

Sanusi Lamido Sanusi

Nearly two years after Sanusi Lamido Sanusi, the Central Bank of Nigeria (CBN) Governor fired the executive managements of eight banks for running their banks into a hole, a new chapter in the tussle over the banks’ recapitalisation was opened last Friday with the CBN Governor personally signing a public notice fingering “a small number of shareholders...purporting to be acting in the interest of the wider shareholders but most likely at the instance of some vested interests”. 

Sanusi alleged that unnamed interests blocked four MoUs which would have brought restoration to the affected banks. He also served notice that the CBN was “re-evaluating the options available to it under the Nigerian law”, with an ominous warning that the apex bank would not allow itself to be tied up in endless litigation with persons who have no stakes in these institutions.” Earlier, the CBN had set September as deadline for the recapitalisation of the rescued banks.

The CBN Governor’s frustrations with the relatively slow progress are not entirely without some justification. After all, no one could have expected that the process of restoration of the banks will take this long. Nigerians ought to be alarmed that the eight affected banks aren’t even anywhere getting out of the financial hole (the least is said to have a negative asset value of N27 billion while the highest has N330 billion), 15 months after the CBN appointed management took over the banks. 

For us, however, the greater alarm is the indication that the CBN may not even be able to pull the recapitalisation exercise through, given the multiple litigations that have bogged down the exercise. That explains the resort to the threat of the final solution of liquidation. 

Of course, we consider the threat to liquidate the banks unnecessary. After shelling out N620 billion to bail out the banks, anything short of managing the process through would be disastrous – a monumental failure on the part of the CBN. Here, any suggestion that the apex bank failed to anticipate the challenges can only lead to the conclusion that it did not do its homework thoroughly in the first place.   

There are clearly two sides to the current tango between the shareholders and the CBN on the recapitalisation exercise.  Much as the apex bank would prefer to heap the blame on the so-called intransigent shareholders, its magisterial bearing, and one-sided settlement have certainly not helped the process any bit. The failure to distinguish between the delinquent managers responsible for running the banks aground and the thousands of passive shareholders who saw opportunity and invested in the banks has certainly not helped in promoting confidence between the two stakeholders.   
Would anyone blame the shareholders for going to court to protect what they consider their group interests? As it is– not once or even twice has the CBN Governor pronounced that the shareholders have technically lost their investment.  Why should they fold their arms while awaiting the crumbs that would eventually fall from the table of the new investors – without putting up a fight? That seems to us as the crux of the matter.

The CBN needs to go back to the drawing board if only to find a better strategy to accommodate the interest of these shareholders in the planned recapitalisation. We see nothing in the interest of both parties that is irreconcilable. The CBN desires stable, financially sound institutions that embraces global best practices; the investors want to be part of the process. They are as much victims of the crass mismanagement of the former executives as the depositors that the apex bank desires to protect. Pressing to be accommodated in the emerging structure of the banks is not asking for anything extraordinary. It is late in the day to resort to drastic measures.    

Re-edited by Odedeyi Abiodun (Don Pedro)
Culled from The Nation Newspaper 

Ex-Speaker in EFCC net

Don Abiodun Odedeyi (extract from 234next)

After what seems like another leaprosy show of the arms of the law, speaker of the House of Representatives, Dimeji Bankole was, yesterday evening, arrested by officers of the Economic and Financial Crimes Commission (EFCC).

EFCC had earlier been bullied out of the speaker's home by the combination of the Inspector General of Police, Hafiz Ringim and the EFCC boss was later arrested at his Asokoro, Abuja home around 8pm Sunday evening.

Gist from the Speaker's camp said official of the commission decided to swing into action because the speaker had concluded plans to jet out of the country.

The hullaballo started due to bankole's N10 billion loan he alledgedly collect in other to "offset house salary."

In a counter, Mr. Bankole said that outgoing lawmakers approved largees payroll for themselves alongside with the Senate in 2010.

Mr Bankole said the loan was not a personal facility but was sourced on the directive of the House to foot the large increment in quarterly allowances approved for each members.

He said the directive was reached by a 37-member committee and endorsed by an executive session of the house.

However, as Speaker and Deputy Speaker respectively, Mr Bankole and Usman Nafada, were not part of the proceeds from the loan since they already earned a whopping N100 million and N80 million quarterly each, the statement signed by Media Aide to Mr Bankole, Idowu Bakare said.

“Before the increment quarterly allowance to the office of the Speaker was N100million while his deputy received N80 million. The loan in question was distributed among other principal officers and the remaining members of the House,” the statement read.

All feed fat In the distribution made available in the statement, Mr Bankole’s and Mr Nafada’s allowances remained at their initial N100 million and N80 million respectively, while those of the House Leaders rose from N46million to N60 million.

The Deputy Leader took N57 million instead of the former N43 million while the Chief Whip took N55 million instead of the initial N41 million.

The deputy Whip received N54.5 million instead of N40.5 million and the Minority Whip took N50 million from N36 million.

Other members, including the members of the so called Progressives, led by Dino Melaye, who claimed the loan was not known to the House, collected N42 million instead of N28 million.

In all, the differential of N14 million each for the 360 members, except for the Speaker and the Deputy, accounted for N5.012 billion and for two quarters which the loans were drawn, the amount became N10.024 billion with interest, the former speaker claimed.

Mr Bankole said the Executive Session, which was held on Tuesday March 30, 2010 where the report of a 37 member Committee set up on March 25, 2010 to look into “agitation of member for enhancement of running costs of members”, was reported by Independence Ogunewe, a member of the Melaye-group.

Don Abiodun Odedeyi (extract from 234next)

How To Break Up Nigeria (HTBUN)

How to break up Nigeria (HTBUN)
by Don Pedro
In light of the recent tragedy in Northern Nigeria during the April 2011 elections, especially after the announcement of the presidential election results and the deaths of many citizen including 10 National Youth Service Corps (NYSC), there had been call from some quarters of the country for a review or total break up of the NYSC programme.

At this moment, almost everyone is upset at the spate of the avoidable deaths of these youth corps members in the northern areas of the country. For one, the participation of these young men at a critical point when we needed a body that is neither partisan nor sympathizer to any of the election participants was a ground breaking achievement which was evidence in the election results.

But should the NYSC be scrap because of this one flaw?

Should the NYSC be scrap because of security challenge?

What was the aim of the programme and what are we putting in place as substitute?
The NYSC was instituted in 1973, after the Nigerian Civil War, for the purpose of integration of aggrieved tribes,
To foster cooperation among the many ethnic tribes,
To build a united Nigeria through the future leaders' understanding of their neigbhouring tribes across the country.

So, in an Igala family (Kogi State) of five (5), the 1st served in Niger-Delta, the 2nd served in Maiduguri, the 3rd served in Ogbomosho, the 4th in Sokoto, the 5th in Enugu. They would have relate their experience among themselves, the people, their culture, way of life etc so that when one of them come across a Yoruba man, he will be able to get along fine with him.

So, should we scrap the NYSC? If 'yes', then, what means is in place to build a united Nigeria?
If it is true that the NYSC challenge is a security challenge then, the argument should not be 'scrapping the scheme' but holding the security outfit responsible for lapses in their failure to perform their duties.\

Where were the security operatives during the mayhem? Or were the CITIZEN too powerful for the security men, with guns, to handle?

Were the security operatives part of the 'people' that perpetuated these act of acrimony?

Who says the security men were not paid to look the other way for a while? Or didn’t we all read Ukeoma AikFavour's last blog on facebook?

Who says those behind the sponsoring of these act are not the same calling for the scrapping of the NYSC in other to create a distraction from what we should be investigating?

Are we new in Nigeria, can an ordinary citizen, even a tout, pick up an axe because Jonathan had cheated Buhari and others will follow? Or is it not one 'man' with money to throw around who usually organise his 'boys' to go and 'deal' with a section of the town because they disturbed then from manipulating the result?
Are we looking at the right places for answers?

Many, like Alex Akinyele, had voiced their opinion that Corp members should be posted within their region of origin.

In a country, like Nigeria, where we fight regionalism everyday, and what then are we trying to promote?
As put forward by the Senate spokesman, Ike Ekweremadu that the NYSC programme should be delete from the section of the Constitution and placing it as an Act of Parliament with a revamped (overhaul) structure.

Doing so will only guarantee one thing, a scheme with a paper weight that can be kick around anyhow by anyone when he or she feels like.

Like electricity that we rather go for importation of generator,
Like car plants that we close down for Japan mades,
Like those trains with their beautiful melody that is just a myth today,
Like Ajaokuta steel plant that exist only by name, another challenge look us in the eyes in form of this NYSC incident and the only solution we can come up with is to scrap it.

Let us think before we act, not act before we think.
When Nigeria experienced some terrible air disasters, did we abandon travelling by air? No! Recapitalization came, some planes were ban which resulted in many operators buying new ones and today, what do we have?

Restricting corps members to be serving in their region of origin will do the country no good than brewing a more complex problem that may consume us all - REGIONALISM
Scrapping the scheme will create a vacuum. A vacuum of national service, patriotism, fatherland sacrifice which is very essential in a leader.

So, let us get it underway, let us do away with one scheme, NYSC, and bring about another How To Break Up Nigeria (HTBUN)

Don Abiodun Odedeyi (Don Pedro)

Mystery of the Banging Headache

I am sefaraya
Walking towards the alter of Metzayagi temple.
Why are you all stepping back
Why creating this abyss mist
Between this matchbox container
...And your spacious dwelling?
Oya! Take my hand...
Hold it now and pull me in...
can't I reach for your hand?

Okay, do me a favour...
Or flavour
Flavour
Favour

Abbey, think straight
... A favour/flavour/favour/flavour
STOP!!!
AAAHHH!!!!
Am alright here