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Finding Those Responsible For Nigerian Bank Failures - With Commentaries From You
By Femi Ajayi - Send Your Comments To: Editor@ttimesworld.com
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MALLAM SANUSI LAMIDO SANUSI WHERE ARE THE NIGERIA BANK KILLERS?
Aareee! THE MAN of the year, the governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, is talking again that the politicians that participated in the second republic and the third one should be held accountable for the failed Banks. He reminded Nigerians that they became Governors after they have ruined, pardon me, "killed" the Banks for their refusal to pay back the loans borrowed from the Banks, and reinvested the money in their respective private businesses, while they became Governors, Senators, members of the National Assembly. Is this a character assassination or just stating the facts?
In the continuance of that, the Governor of Central bank of Nigeria is not stopping from calling Nigeria attention to the decaying factor in the persistence abject poverty in Nigeria. Most Nigerians would not subscribe to the fact that Nigeria is poor, and that there is no money, the challenge is, where is the money?
Ironically the budget and the imprest of an officer of the National Assembly of about N60 billion is more than the capital budget of some States. Interestingly the N60billion has not been spent on some lofty futuristic projects done while its citizens are crying for the crucifixion of their Executive.
As of now, no one is accusing anyone of stealing. However, where is Nigeria wealth? Nigerians have the right to know. Sanusi has told Nigerians how the money is being spent through some dubious allocations and allowances. This has to stop.
Sanusi latest is on the Banking sector that some Banks presumed to have failed actually was killed by some greedy politicians. He countered that to say that politicians killed the Banks. Some of them are Governors and members of the National Assembly who borrowed money from the Banks and never paid back; put the money into their businesses. He is calling for their arrest.
Would Jonathan set the Federal Government 'Bull Dog', the EFCC, to hurt for them, Baba Iyabo style?
According to Sanusi, "the banks did not fail but were killed and we must do everything possible to find the killers of the banks just like would be done to find the killers of anybody killed by some people." We will see where this will get us possibly the EFCC would have a field day very soon.
Sanusi continues,
"Most of the people who killed Nigerian banks are still very much around us, they borrowed money and refused to repay them and when the banks died, they turned around and reinvested the money into their businesses with some of them becoming governors, senators, members of the National Assembly."
Ironically, they found their ways to the National Assembly and continue with the same method of "killing" Nigeria economy through their spurious allowances. Sanusi is yelling to the listening ears that they must be found and processed through the laws. Nigerians cannot wait for that long to find the 'Killers' of Nigeria Banks. Ibori is still on the run.
If you are planning for tomorrow, sow rice; if you are planning for a decade, plant trees; if you are planning for a life time, educate people, so goes a Chinese proverb.
This picture below is typical of a school in Nigeria, the African Church Primary Schools 1 and 2, Iju-Isaga, Lagos, while the Legislators collect millions in constituency allowances and nothing is done with it in their respective constituencies. 'From Lagos to Ibadan, Ilorin to Maiduguri, Katsina to Oron and Port Harcourt to Oshogbo, conditions of public schools are almost the same.'
Roofless classrooms dot nation where lawmaker earns N15m per month
Most Nigerians adored another plucky Nigerian, Sanusi Lamido Sanusi, joining El-Rufai and Ribadu. Nigeria needs more of them.
Ironically Nuhu Ribadu has fallen into the trap of being in active politics. He could have been better off to provide his services through another means with the support of a serving and willing President that really wants to reform the country. It is not through mainstream politics. He would soon find out that khaki no be leather since his principles could be swerved by the political party of his choice. Nigeria is not yet ripe for what he is doing. Would they allow him to reach the pinnacle of the political party?
Technocrats are not and would never be good politicians.
Since the NAFDAC Queen, Professor Dora Akunyili is joining the main stream politics, we would witness what mess the public would bring to her table. Time will tell. I do not see a good technocrat in the main stream politics. They can strategize, manage and deliver. Not necessarily dancing to the polluted tunes of Nigeria style of politics. Nigeria is not ripe enough for the real technocrats' style of public service. Not yet Uhuru.
United States Constitution prohibits its Congress from any salary increment taking effect until after the general election. The United States congress adopts an annual adjustment procedure to increase its members' pay annually based on a 2.8 per cent adjustment. Unfortunately, Nigeria National Assembly increases their salaries and allowances at will.
The outrageous packages after NNA term should be changed as US Congress is not entitled to any package until after two and half terms in office. The cost of running the entire US congress, including salaries of Senators and Representatives, is ONLY 0.2 per cent of its Federal spending.
Thirty percent cut, (30%), N45bn, of the overhead National Assembly 2011 budget is not enough. The Revenue Mobilisation Allocation and Fiscal Commission should cut more.
My days with the Georgia General Assembly as a Legislative Analyst was not attracted by the pay, but the love and the delight derived from what I did on a daily basis. I gained so much experience in my five years stay at the Georgia General Assembly which has been very useful my challenging job at the Secretary of State and till date (December 2010).
At the State level, the Georgia General Assembly meets in regular session on the second Monday from January for no longer than 40 days each year, from January to April.
Since it is a bicameral in the State of Georgia, the Senate and House of Representatives, neither the House nor the Senate can adjourn during a regular session for longer than three days or meet in any place other than the state capitol without the other house's consent.
After the end of the session, every one of them returns to their respective professions for the rest of the year. They collect meagre salaries and allowances and still remain committed to the State.
Members of the General Assembly receive salaries provided by law, so long as that salary does not increase before the end of the term during which the increase becomes effective. Ironically, the Nigeria National Assembly seized the opportunity of the ill health of late Yar'Adua to escalate their pay and allowances.
Excessive allowances was the dubious advantage this current set of the National Assembly were busy doing when Yar'Adua was ill, while refusing Jonathan to act and control their excesses.
Could Atiku curb the National Assembly excesses as Yar'Adua started before his ill-health that took his life; which the lucky Jonathan is hopefully doing, with no surfeit baggage on his integrity?
Their allocation should drastically be reduced and divert into the nerve of the national growth and development which is centred on power, oil, gas, and transportation sectors, That would boost heavy investment by the private sectors, especially foreign investors.
The HEAT is on, not on Beverly Hill Corps but on Nigeria rot at the National Assembly and the rest of some Nigeria heartless politicians.
Nigerians should say NO to their automatic tickets.
They should return to their hamlets, villages, cities, the fewer professionals among them should go back to their practices. The rest could continue with their unacceptable dirty professions if the law would not catch up on them.
Once in a while we publish some of our readers' reactions to some of publications. This time it's with the attitude of the members of the National Assembly toward their jumbo pay. Possibly the reaction from the public would bring out some positive development from their quarters.
What should be done to this group of politicians according to Sanusi is being recommended by some of our readers' published unedited below.
High Chief Nwosu: My dear Prof. Ajayi: I just read this article in the internet but wondered if anybody is afraid of telling our law makers to simply pay back to Nigeria 95% of what they have milked from us. By just saying that they should cut their salaries to 75% after apologizing to Nigeria you are saying they should keep what they already got. That is never fair to anybody. Where is EFCC on this whole thing? Where is Wole Soyinka, Shagari, Gowon, Danjuma, Buhari, etc? Which kind of law are these guys making that they are robbing us blind and no one is doing anything about it. I suppose by now every Nigerian should have been a millionaire by simply being a Nigerian. Again, we must now begin to appreciate Udoji and group for their generosity during their era. My brother this should not be left like that. It is very serious. Beginning from when the National Assembly got this outrageous, they ought to pay back to Nigeria her money and, or go to jail because, again they can not be jailing people they made scapegoats and be walking freely just like that. They are now trying to punish Ibori but are doing the worse things than people like Ibori did. Men, I have been advocating Rawlings type of treatment for Nigeria but people are not seeing it. If these Assembly members will just go free with what they have officially stolen then EFCC is a big joke. Let them not bribe or even do anything to harm this Sanusi of a man. He is the man of the hour since he has the courage to stand his ground on this. It then means the laws these guys have been passing are just laws to enrich themselves only. Have I not said that things done in this manner should be considered as conspiracy and as such treasonous as the Ciroma consensus meetings? It is like Northern Nigeria conspiring to zone the presidency in their not after having ruled Nigeria 90% of all the years Nigeria has been independent forgetting that there are other parts of Nigeria, common! Yet the other parts have the resources for which they have 'open eye'. Well I stop here for I am simply angry at our country in general. High Chief Nwosu
Oladeinde: Onigege ara, I love your article so much. I really appreciate what Sanusi said at the floor of the house. Omisore was so stupid to be asking Sanusi some nasty questions concerning the spending of the senators. When I read it I was happy and laughing that somebody was very bold to confront them openly that they are all taking too much of the economy. At the same time no development in the country. This is one of the reasons why I pray that somebody like Jerry Rawlings or another Idiagbon/Muritala Mohammed should come on again to clear all these rotten politicians. However, it seems as if ACN is using Lagos as example to let everybody know that they have good things to offer for the people of Nigeria. I don't care which political party you are. We need to develop the country and wipe out corruption everywhere in the country. Look at the immigration officers at Muritala airport. They are very corrupt to the core. You need to give them money before you can do anything or else they will delay you so that you miss your flight. I love you my good Professor. Yes, they are real treasury looters who have no interest of the nation. God Almighty will sentence them all very soon. Inu awon wonyen nbimi ni gbogbo igba now. Awon ni koje kise wa now. {I am always angry with them. They prevented job opportunities.} Look at the revenue for the local government in Ijesa area. These people did not do anything with this money. Please God bring down Idiagbon to clear them off. Thanks. Oladeinde
Bobby Optical: Hello sir, I am a Nigerian living and working in Tokyo Japan, a Yoruba by ethnicity, real name Kayode to be precise I am one of your numerous fans, I really enjoy reading your articles very much on WWW.NIGERIAWORLD.COM. I love the way you talk and attack those mindless unhonorable {Dishonorable} individuals calling themselves members of the house in Nigeria parliament also generally about all politicians in that entity called NIGERIA. We in Diaspora have responsibility to wake up our brothers and sisters back home, it seem they've all been gagged by the harsh economic atmosphere back home or are fearing for their lives to speak out. I will surely like to see more of your direct to the point articles. Sometimes I enjoy it to the point of tears. I really can't understand BLACK people, we have been colonized, enslaved by Europeans now the worst part of our existence is now endangered by black on black crime, black on black injustice, black on black misrule, black on black this and that etc., for example these senators salary of a thing. Please I will like to get to know you and a reply from you as well; I love and respect your spirit for fighting for your motherland. CHEERS. BEST REGARD.
Dr. Usen Michigan: Thank you brother for writing on this, we have to fight this until we all see it is done right for our children and the generation there after. I will spend all I have to make sure every corrupt individual from my state "Akwa Ibom State" is voted out from the assembly, we have to stay on this news until there is a change. We have to plan for a rally in Nigeria in all the state to educate the people, that government is from the people, by the people and for the people, not for the crooks and the privilege few. Please do not stop writing on this matter, and lets join force together for a day of national education, just like Glen Beck, and other do it here in US. Keep in touch. Dr. Usen Michigan
Dr. Baba Adams: Prof. Ajayi: Greetings sir and thanks for the email my brother. As usual your essay is brilliant and we 100% agree with your assessment and analysis. There is urgent need to check the excesses of this new form of corruption at high places! The new minimum wage for Nigerian workers was pegged at N18, 000.00 per month or N216, 000.00 per year - Compare that to the jumbo salary and constituency allowance of the members of the National Assembly... What has and is happening in Nigeria is called "high cost of bad governance". Nigerian government at all levels spends lion share of her recurring expenditures servicing a small clique of people be it at the National Assembly, State Houses of Assembly, Local Government Areas, at the Federal and State Executive branches. The jumbo compensations would have been justifiable if serious effort has being taken to alleviate the calamity of the Nigerian people be it on the nations deplorable electricity situation, lack of portable drinking water, very bad roads, broken healthcare system, breakdown of security law and order, lack of jobs, failing educational system at all levels, etc. Since 1999 both branches of the National Assembly passed very few pieces of Legislation that has become a public law in Nigeria. For example during the 2009-10 Legislative year, total of 119 bills was presented to the Senate, 114 were read the first time, while 40 Bills passed second reading. Another 27 resolutions, including the Doctrine of Necessity that installed President Jonathan as Acting President in February 2010 were also taken by the Senate. Overall for the 2009-10 Legislative year the Nigerian Senate passed total of 13 bills, of which only two - the 2010 budget and Local Content Act were assented into the law of the land by the President Jonathan. In comparison during the same time period 2009-10 Legislative year, the United States Senators submitted 1,000 Bills, of which 478 were passed, 128 became public law. In addition in 2009 the U.S. Senate also confirmed 23,051 nominations, ratified 1 treaty.
MERRY CHRISTMAS AND PROSPEROUS 2011 AND YEARS AHEAD WITH ABUNDANT GOD BLESSINGS TO OUR READERS!!!
Bottomless Looters Called Nigerian Senators and Representatives
By Femi Ajayi
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Mallam Sanusi Lamido Sanusi finally let the cat out of the cage that the Nigeria National Assembly swallowed 25% of the country's overhead expenses. Speaking to the faces of the members of the of the National Assembly on two occasions as of date, (December 11, 2020), he stated,
"I confirm Mr. Chairman that I did say in my speech at the Igbinedion University that 25 percent of the overhead of the Federal Government goes to the National Assembly. I have figures from the Budget Office of the Federation for the year 2010. Total government overhead is N536, 268, 49,280. Total overhead of the National Assembly is N136, 259,768, 112 which is exactly 25.41 percent of Federal Government overhead. The overhead of the National Assembly as a percentage of the Federal Government budget in 2009 was 19. 87 and in 2008 it was 14.19."
In addition, regardless what percentage the NNA overhead monthly consumption, Nigerians have learned that a Nigeria Senator monthly salaries and allowances is N15.18 million which translates into N198.54m annually. While each member of the House of Representatives member takes home N10.59m a month, or N127.18m annually.
When Sanusi was asked to apologize that he has misled the world, he educated NNA that,
"By my upbringing, if I'm wrong, I don't need to be told to come and say I'm wrong and I would apologise. By my nature, if I am not convinced that I'm wrong, I do not apologise and this is really where the point is. I gave a number and I said where this number came from. I did not abuse anyone. I did not attack anyone. I did not say anybody stole money. I was not given a chance to say the context in which I gave this number."
As a matter of fact only about 550 Nigerians spend 25.41 percent of Nigeria Federal Government overhead. This is a broad daylight robbery. Unfortunately Nigeria roads are impassable, the Nigeria workforce have been crippled with perpetual industrial actions in Nigeria, much of Nigeria resources are stocked at the Federal level, with the majority going into the members of the National Assembly.
An initial threat from the NNA of treasonable offence against Sanusi, as an attack on the federal legislature by members of the executive arm of the government, has changed into not being taken as a scapegoat. The NNA is defending the indefensible while setting Nigeria ablaze with abject poverty. They would stoop too low in their defence as if most Nigerians are empty heads.
Nigerian labor force has engaged in ceaseless industrial actions. Unfortunately Nigeria workers have been shooting their arrows of anger at the wrong direction.
For Nigeria to move forward, especially creating an enabling environment for the incoming generation, Nigerians need to stand up to "… the interest of a very few group of people who have held the country to ransom."
Nigerians have said this before; no one seems to be listening, Nigeria National Assembly is the incubator of corruption. It stinks to the highest heaven. The avant-garde MINDSET must start right away. It must commence with the members of the National Assembly. The Nigeria National Assembly MUST be cleansed.
It is sad the ways and manners members of the National Assembly Committees members reacted through queries for the Central Bank Governor and Minister or Finance, Sanusi and Segun Aganga respectively. The manners at which they rushed to the conclusion to summon them before the committees is like the behavior of a chicken whose head is just been chopped off.
Nigerians would agree with Senator Omisore that Sanusi has embarrassed, not only members of the Nigeria National Assembly, but the entire Nigerians, for dare exposing the rot at the National Assembly. The Yorubas usually say that banana is decaying we are singing hallelujah that it is getting ripe.
Most Nigerians have been crying, shouting, throwing some curses on members of the NNA about their outrageous excessive living without any caution. Sanusi is bold enough, to say to them affirming what he stated at Igbinedion University, and would not hesitate to resign.
We always believe there are many patriotic Nigerians that are still standing. The way to get out from the low ebb of being on the bottom pit of one of the most corrupt countries in the world is for Nigerians to take their destinies into their hands by fighting the agents of corruption.
Nigerians are the architects of their own fortune. No American, European, Asian, or any African for that matter, would build Nigeria, Nigerians, wherever they may be will do that. Any other nationals would only come to Nigeria for their own selfish needs and benefits which they will repatriate to their respective countries.
In digressing Nigerians attention from the humongous pay, Hon. Dimeji Bankole, the Speaker of the House of Representatives would remark that the 'Corruption in Nigeria is perpetuated by corrupt and inept civil servants and not the political class'?
Nigerians are very curious as to why Bankole should swerve from the real discussion, if not to endorse what Sanusi revealed to Nigerians, that part of the contributory causes of poverty in Nigeria is this humongous pay to the National Assembly members. Monkey dey work, bamboo dey chop!
Why blaming the civil servants? Why the diversion of the discussion to the Civil Servants for God's sake. Nigerians know that an average Nigerian, or human being for that matter, is potentially corrupt. What are the efforts of the National Assembly to curb it?
The current revelation by the CBN Governor is the backdoor style of spending Nigeria scarce resources. As the Speaker of the House of Representatives, whose job is the chief overseer of the resources, what prevents him from setting his search light on what he claimed has been happening for the past five years.
According to Bankole, he is of the opinion that an estimated Ni trillion was taken from the budget annually by the civil servants and not returned to the treasury. Possibly we would ask the Pastors, Imams, Oluwos, or the Okada operators to challenge the Civil Servants on the money not being returned to the treasury. Looking for cheap ways out of cleaning themselves from the National Assembly self-made mud with dettol soap, is not the answer.
Members of the National Assembly encourage and sponsor the Civil Servants to be corrupt. They apply and get contracts from them, mandate them to give their various companies contracts. They pay frequent visits, sometimes through their agents, to the Federal Ministries for contracts. Blaming the Civil Servants is like exposing their maze for corruption of highest order.
How does the Honorable Speaker of the House of Representatives of the Federal Republic of Nigeria wants to defend the whooping three months allowances and salaries of N553 million for the six (6) suspended Honorable Dino Melaye's group in June 22, 2010.
What the NNA has successfully done is to increase the poverty level in Nigeria to a shocking 54.4 per cent, trailing China and Thailand in human development index. Unfortunately countries that borrowed from Nigeria have excelled in Gross Domestic Product and the National Assembly are livid at Sanusi. Unfortunately, Nigeria has been ranked 46th in the 2009 Global Hunger Index.
The National Assembly would have to convince Nigerians the need for allocating N6.1 billion for SIMS card registration in the 2010 budget for the Nigerian Communications Commission. Shockingly, the ad-hoc committee, headed by West Idahosa who was recently recalled from suspension, with only 18 members on the House floor on November 25, 2010, approved the N6.1 billion for SIMS cards registration. This is the responsibility of the service providers who are already doing that free of charge for their respective subscribers.
Prof. Aminu might disagree with Sanusi for washing Nigeria dirty linen in the public; the whole world knows that Nigeria corruption linen needs very strong bleach to take the dirt out. The National Assembly riddle is like the turkey in the desert, thinking that by burying its head in the sand thinks that no one would see him.
How many members of the Federal Executive Council, could say to the National Assembly members that,
"Whether I am enjoying the job or not, I am working for the people. I am not holding the job so tight. It is not my life. I am here at your pleasure, if you want me to go, please tell me and I will go without a fight, but I am not thinking of quitting."
After the National Assembly harassed Sanusi and he REFUSED to back down, the Senate, through its megaphone, the Chairman, Senate Committee on Media and Information, Ayogu Eze, on the defensive, queried Nigerians, "Why is it that everybody is interested in knowing the salary and allowances of only members of National Assembly?"
Unfortunately agreeing with the label that the Nigeria National Assembly is an incubator of corruption, Ayogu stated, "If we want a thorough job, if we want to stamp out corruption, the National Assembly is prepared. Let us not pretend and be selective, Let this war be holistic, let it not be targeted at some underprivileged individuals."
Nigerians are wondering whether members of the National Assembly are the "underprivileged individuals" that Sanusi or EFCC would be seeking after. Their jumbo pay is not the question of "If the decision of Nigerians is that the allowances that are paid to public officers are too high…" Nigerians are saying that the allowances are outrageously too high.
What Nigerians are telling members of the National Assembly, in plain language, is that a Senator's salary and allowances of N15.18million per month and each member of the House of Representatives monthly pay and allowances of N10.59million are too much. They should search their conscience on the life of an average Nigerian that could hardly afford three square meals a day; could not send their children to school; while basic health care could not be afforded.
If actually members of the National Assembly are men and women of high integrity, they should come out publicly, APOLOGIZE to Nigerians, go to their chambers and prune down their jumbo pay by 75%. They should pass laws that would transform the lives of Nigerians, make their offices less attractive; make State Assemblies part-time, meeting for only 3-4 months a year; make the Local Government Council meet bi-weekly and pay them ONLY seating allowances; while the National Assembly should drastically prune down their salaries and allowances. Majority of Nigerians have made, are still making, and will continue to make sacrifices.
The crusade Golden white hairy Ayogu Eze is asking for has started already. Here is a message in circulation among Nigerians on the Internet across the Universe:
"Do you know that it costs tax payers 290m Naira yearly to maintain each member of our National Assembly in a country where nothing works & 80% of population earn below 300 Naira a day? A working day earning of a senator is more than a yearly income of a doctor; it's more than the salary of 42 Army generals or 48 professors or 70 commissioners of police or more than twice the pay of the US president or 9times the salary of US congressmen. Please say NO to looting of Nigeria in the name of democracy by sending this text to at least 5 others."
Either Sanusi got his facts right or not; most Nigerians are saying that the National Assembly members should prune down their outrageous life style and consider the poor innocent majority Nigerians. Whether CBN Governor is right or wrong about the 25.4% calculation, the take home pay for the National Assembly members is outrageously too high.
Members of the National Assembly should rethink of its bullying style in addressing issues affecting common people in Nigeria. Prosperity is not on their side if their recklessness is not pegged.
FG Budgets N4.2trillion For 2011
Nigerian Tribune Reporting
BARRING any last minute adjustment, President Goodluck Jonathan will, today, present to a joint sitting of the National Assembly, a budget estimate of about N4.2 trillion for the 2011 fiscal yea,r with a crude oil benchmark of $62 per barrel.
A presidency source disclosed that the budget would have a capital expenditure of about N1 trillion, while the recurrent expenditure was about N3.2 trillion, preparatory to the intention of the Federal Government to reduce recurrent expenses in 2012.
The presidency had hinted recently that government was determined to reduce recurrent expenditure, which could see a reduction in its workforce and the merging of certain ministries, departments and agencies (MDAs), with the possibility of voluntary retirement with full benefits, as part of measures to achieve the objective.
Politicians Killed Nigerian Banks -Sanusi
Calls For Their Arrest
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AS the controversy surrounding the statement made by the governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, about the budget of the National Assembly rages on, the CBN governor has declared that politicians in the country, particularly those who participated in the second and the botched third republics, should be held responsible for killing most of the dead banks in the country.
The CBN governor, who delivered a public lecture entitled “Global Financial Meltdown and the Reforms in the Nigerian Banking sector” at the Abubakar Tafawa Balewa University, Bauchi, said that, “most of the people who killed Nigerian banks are still very much around us, they borrowed money and refused to repay them and when the banks died, they turned around and reinvested the money into their businesses with some of them becoming governors, senators, members of the National Assembly.”
Mallam Sanusi, who said that he did not believe in the categorisation of the banks as ‘failed banks’, explained that, “the banks did not fail but were killed and we must do everything possible to find the killers of the banks just like would be done to find the killers of anybody killed by some people.”
On the banking reform he introduced in the last 17 months, he stated that the reforms had brought stability to the banking sector and the Nigerian economy, adding that due to the measures put in place, no single bank in Nigeria had collapsed ever since the full implementation of the reforms.
He added that no depositor had lost money as a result of the banking sector crisis because, according to him, “the banking system has stabilised and the most affected banks have continued normal operation while modalities for injecting fresh capital into them, either by shareholders or through acquisition and merger arrangements, are being finalised.”
OIL POLITICS: The Amnesty Worked
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The rise of crude oil price in the market raises hope of boom time for producers of the resource and fears of high-energy costs for others. Price thresholds above $80 per barrel also make investment in some forms of energy such as agrofuels appear attractive. For Nigeria, as the price of crude inches up, so must the gobblers of so-called excess crude funds be getting ready for the kill.
As the major supplier of government revenue, the crude oil price rise must be accompanied by increase in production to ensure maximum benefit to the government and the oil corporations. This would mean keeping all oil wells pumping at full throttle. It would also mean ensuring that peace reigns in the oil fields, even if it means exerting maximum firepower in search of a handful of renegade post-amnesty militants.
The popular spaces in Cancun began to fill up over the last weekend, even as the climate talks got ready for the home stretch. The environmental justice movement believes rightly that fossil fuels must be left in the ground, as their use is responsible for the release of much of greenhouse gases in the atmosphere. Leaving the fossil fuels in the soil would translate less pollutions and less toxic compounds in the environment. It would also mean rapidly transiting to renewable or less harmful energy sources and into a post carbon civilisation.
Negotiators in the climate talks are not listening to the clarion call to leave the fossil fuels in the soil. What is music to their ears, however, is how the carbon that is released when the fossil fuels are used can be captured and stored. No, they are not exactly debating the best technologies that can achieve this. So, what is on the table?
Nigeria's Afribank Says in Talks With Investors
Reuters Reporting
Nigeria's Afribank says in talks with investors
LAGOS Dec 9 (Reuters) - Nigeria's Afribank (AFRIBAN.LG), one of nine lenders rescued in a $4 billion bailout last year, said on Thursday it was in talks with potential investors about recapitalisation, but gave no further details.
"The bank has entered into exclusive negotiations with a potential core investor group which if successful, could lead to the recapitalisation of the bank," Afribank said in a notice to the Nigerian Stock Exchange.
Banking sources said last month that Afribank was considering a bid by local rival Fidelity Bank (FIDELIT.LG). Fidelity has in the past confirmed that is has bid for a rescued bank but has made no further comment. (For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/ ) (Reporting by Nick Tattersall)
CBN: Only 1 Bank Rates Above ‘C’
AfDB Backs Banking Reform
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The Central Bank of Nigeria (CBN) has said that only one out of the nation’s 24 banks has a rating that is above ‘C,’ when put on five points scale of ‘A’ to ‘E,’ with ‘A’ as the highest rating indicating very sound financial health condition and ‘E’ very weak standing.
This fact was revealed in the CBN annual report for the year ended December 31, 2009 made available on the apex bank’s website yesterday.
The CBN had in the past year evaluated the health of banks under a special examination, based on the CAMEL (capital adequacy, asset quality, management, earnings and liquidity) test.
Although the CBN report failed to disclose the identity of the banks and their ranking, it said only one bank was rated ‘B’ and 11 were rated ‘C’ in 2009, compared with three and 18 achieved under the same categories respectively in 2008.
It also stated that three banks were rated ‘D’ and nine banks rated ‘E’ in the year under review, as against the two and one attained respectively under the same category in the preceding year.
Efforts to get relevant officials of the CBN yesterday to explain the categorization further failed as they did not pick their calls.
The report stated: “The assessment indicated that 12 banks did not exhibit serious weakness that necessitated supervisory concerns. However, 12 banks, as against three in the preceding year, manifested debilitating conditions that required supervisory attention. The computed Capital Adequacy Ratio (CAR) of banks indicated that 11 banks did not meet the stipulated ratio of 10 per cent, compared with two as at end-December 2008. The asset quality of the banks, as measured by the ratio of non-performing loans to industry total, deteriorated as it increased from 6.3 per cent in 2008 to 32.8 per cent.
“This ratio was above the industry threshold of 20 per cent maximum prescribed in the Contingency Plan for Systemic Distress. The development was attributed to the CBN requirement that banks make full provisions for all non-performing, off-balance sheet engagements under new supervisory regime. The average industry liquidity ratio of 35.3 per cent was above the 25 per cent minimum requirement. Three banks, however, failed to meet the stipulated ratio, as against two in the preceding year.”
The report also showed that the regulator conducted on-site examinations on a total of 995 Other Financial Institutions (OFIs) in 2009, to ascertain the extent of their compliance with their business plans.
The exercise, the apex bank explained, revealed that on the average, the institutions were well capitalised above the prescribed minimum level of N20 billion.
“They were, however, all characterised by poor asset quality and weak corporate governance. The exercise revealed, among others, a high level of deterioration in asset quality. Some institutions also had negative shareholders’ funds, which diluted the overall financial performances of the Development and Financial Institutions (DFIs).
“There was, however, an improvement in corporate governance, following the reconstitution of the Board of each of the institutions. Furthermore, two meetings were convened by the CBN and the World Bank to review the weak performance of the Nigerian Agricultural Co-Operative and Rural Develop-ment Bank (NACRDB) and reposition it for better performance.
“Spot checks conducted on 244 selected Bureau De Change (BDCs) revealed that most of the institutions breached existing guidelines, particularly in the areas of mark-up margins, record-keeping and utilisation of foreign exchange allocations,” the report further stated.
Meanwhile, from the African Development Bank (AfDB) has come staunch support for the banking reform initiated by the Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi.
President of the bank, Mr. Donald Kaberuka, said the controversy surrounding the reform notwithstanding, the reform had led to stability in the sector.
He explained that the step taken by Sanusi was logical following the consolidation phase carried out by the former CBN Governor, Prof. Chukwuma Soludo.
Kaberuka said the critical areas in banking, particularly supervision, capital deposit, asset quality and liquidity issues were being addressed.
He made his views known in an exclusive interview with THISDAY during his visit to Nigeria last week.
"Governor Sanusi Lamido Sanusi has done a marvellous job. The banking sector in Nigeria has gone from a period when consolidation was needed and was carried out by the previous CBN Governor Chukwuma Soludo.
"The second phase of reform was needed and from what Sanusi has done, I’m confident that he is doing the right thing," Kaberuka stated.
The AfDB president indicated that the global financial meltdown had shown that any system, no matter how sophisticated, could be problematic without proper supervision.
He said Sanusi appeared to have the right approach to the major issues facing the banking sector in Nigeria at the moment, the reason why he supports him.
"I am confident and I fully support what Sanusi is doing," he emphasised.
Kaberuka said he is impressed by the country's fiscal rules.
He pointed out that the savings from the oil-based fiscal rule (of the President Olusegun Obasanjo administration) helped Nigeria weather the global financial meltdown.
Across Africa, Nigeria is one of the countries that came out of the crisis quite well and the banking sector withstood the shock, he explained.
AfDB is prepared to support the country's power sector reform, he stated. He said the bank had experience in the three categories of project financing: private investment, private-public sector partnership and public investment that are under consideration.
The AfDB boss disclosed that the institution had committed some $700 million to Nigerian banks this year through loans.
Another $150 million loan for infrastructure is yet to be approved by the National Assembly while the bank has the ability to support Nigeria yearly with a $1 billion loan for the power sector.
Kaberuka urged the Federal Government to focus on infrastructure which he said would unleash the potential of the country. A country of this size, he stressed, required massive investment in order to lay out the necessary infrastructure to run the economy.
In spite of the worry about debt, the AfDB president noted that the country's profile was pretty low at the moment.
"My reading of the Nigerian debt situation is that the risk of debt stress for Nigeria is very low. The overall external debt is less than the four per cent of the Gross Domestic Product (GDP), one of the lowest in the world. In fact, if you look at the debt due as opposed to the stroke of debt, it is one per cent of the GDP, one of the lowest in the world," he argued.
Asked to comment on the election years back in AfDB, in which he defeated Nigeria's Olabisi Ogunjobi to clinch the position of president of the bank, he said the most important thing is that all Africans should serve the continent in any capacity they find themselves.
"If an African won or lost, all of us must continue to serve Africa ..... It was not a contest between a country and another but between two candidates who are competent to do the job," he stated.
Akingbola Refuses To Take His Plea As EFCC Re-Arraigns Him.
Akingbola To Compel The EFCC To Leave Out His Property.
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The former managing director/chief executive officer of Intercontinental Bank Plc, Erastus Akingbola was on Monday November 29, 2010 re-arraigned before Justice Charles Achibong of the Federal High Court Lagos
by the Economic and Financial Crimes Commission, EFCC. Akingbola, whose re-arraignment before Justice Achigbong was sequel to the transfer of the case from
Justice Idris Mohammed’s court however failed to take his plea as his counsel, Felix Fagbohungbe opposed it on the grounds that there was an application before the court seeking to quash the charges. He told the court that there was an application for the quashing of the case. “The accused person/applicant is being charged and arraigned for offences which are unknown to law,” he stated, adding that the charges were incurably defective.
However, counsel to EFCC, Emmanuel Ukala, SAN, objected to it saying that he was only served with the preliminary objection this morning. He said he was statutorily entitled to time to respond and therefore asked for time to file written addresses. Chief Fagbohungbe reminded the court that the accused person was earlier granted bail and that he should be allowed to continue to enjoy his bail condition. Justice Achibong then adjourned to December 14, 2010 for hearing on the motion to quash the charges. The accused person was allowed to return home.
In another matter before the court, Akingbola’s counsel is asking the court to compel the EFCC to leave out his property at No 12 Ruxton Road, Ikoyi. Akingbola’s counsel claims that the property was not part of the schedule of property that was attached by the court.
It would be recalled that Justice Tijani Abubakar had given an order on the interim forfeiture of the property of Akingbola when he was declared wanted by the Commission. The then trial judge, said that the EFCC Act 2004 gave the Commission power to investigate and attach assets suspected to have been acquired through proceeds of financial crime and money laundering. After listening to the submission of both the prosecution and the defence counsel, Justice Achigbong said he was reserving his ruling pending the determination of the matter on the stay of proceedings.
In a related development, a Federal High Court sitting in Lagos has ordered the EFCC to release the international passports of the former Managing Director of Afribank, Mr. Sebastine Adigwe and six others who are standing trial for alleged mismanagement of funds and abuse of office. Justice J Tsoho who gave the order while ruling on the application of the accused persons for a variation of their bail conditions, however stated that the accused persons must seek the permission of the court at least seven days before they could embark on any journey.
The Judge refused the prayer of the sixth accused person for the defreezing of his account on the ground that he did not state the account number and left the court to speculate. After the ruling, the counsel to both
parties agreed to return to the court on 28 January 2011 to argue the motion by the accused persons that the charges against them be quashed.
Adigwe and six other persons which include Osa Osunde, former chairman of Afribank, Isa Zailani, Chinedu Onyia, Henry Arogundade, former executive directors of Afribank, Falcon Securities Limited and Peter Ololo,
managing director of Falcon Securities Limited are facing an amended 33- count charge brought against them by the EFCC.
Adigwe and his co-travelers are alleged to have recklessly granted credit facilities above their approval limit as provided in the regulations of Afri bank Nigeria Plc, thereby committing an offence contrary to Section 15(1)(b) of the Failed Bank (Recovery of Debts) and Financial Malpractices in Banks Act Cap F2 Laws of the Federation of Nigeria 2004 and punishable under section 16 (1) (a) of the same act. They are also said to have failed to take all reasonable steps to ensure that the books of accounts of the bank as at 31 May 2009 gave a true and fair view of the state of affairs of Afribank Nigeria Plc as required by Section 24(1) section 24(2) of the Banks and other Financial Institutions Act Cap B3 Laws of the Federation of Nigeria 2004.
However, Justice J. T. Tsoho granted bail to the accused persons on April 26, on the same terms and conditions upon which they were granted bail when they were first arraigned by the Commission in September 2009. The bail conditions are:
Deposit of bank guarantee in the sum of N1 billion in favour of the Commission to secure the attendance of the accused person. The procurer of the said bank guarantee to provide tax clearance certificate of the last
three years.
A surety in respect of each suspect/accused person and such surety must be a serving/current minister of the Federal Republic of Nigeria who will provide a landed property in Victoria Island, Lagos or Ikoyi, Lagos or
Maitama, Asokoro in Abuja whose title and value will be verified and found acceptable to the Commission.
Presidency, N’Assembly Trade Words over Economy
Speaker and CBN chief point fingers...
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Speaker of the House of Representatives, Hon. Demeji Bankole has accused Ministries, Departments and Agencies of government of collecting N3 trillion, adding that investigations by the National Assembly have revealed that such money was collected without remitting same to the Federal Treasury.
Also, the Governor of Central Bank (CBN), Mallam Sanusi Lamido Sanusi has said the bulk of federal government spending ends at the door step of the National Assembly because according to him, 25 per cent of the federal government budget spending was always given to that arm of government alone.
Just as Speaker Bankole announced this in Benin, while delivering the 35/36th Convocation Lecture of the University of Benin titled, “The Challenges and Prospects of Transforming the Nigerian Democratic Polity”, the CBN Governor made the revelation while delivering the 8th Convocation Lecture of Igbinedion University, Okada with the topic: “Future Prospect of Nigeria Economy”.
According to the Speaker, the renewed commitment of the National Assembly to oversight activities as it relates to tracking and monitoring of budget implementation, has led to the recovery of over N750 billion unspent funds in two years.
“Before now, such discoveries and re-channeling of the unspent funds for the good people was unheard of,” Rt. Hon. Bankole said, adding that the National Assembly maintains that the rule of law, which is one of the tenets of democracy, must be followed.
Quoting the 2010 UNDP Human Development Index which ranked Nigeria 142 in the Low Human Development Category out of 169 countries surveyed globally, the Speaker observed that with a reservoir of highly talented and resourceful persons, Nigeria has no business being identified with nations on UNDP Low Human Development Category.
He therefore solicited for investment in education, saying that the nation stood to benefit from positive development of increased investment in education.
“It is a known fact that, without quality research which results in improvement in Science and Technological inventions, we cannot solve the multi-faceted problems of development currently starring Nigeria on the face the face”, he said.
Bankole, while disclosing that the electoral reforms of the National Assembly were targeted at greater transparency and credibility of elections, called on Nigerian youth to refuse to be used for electoral rigging and political violence by self serving politicians.
He advocated for a return to the practice of fiscal federalism as the basis for speedy development of the country, pointing out that a situation where Councils and some States become actively only after they return from the Federation Accounts Allocation Committee meeting in Abuja was not sustainable.
Bankole therefore, called for all hands to be on deck, saying that the current efforts of President Goodluck Jonathan, especially in the areas of Power supply, critical infrastructure and electoral reforms have combined to commence the process of laying a solid foundation for sustainable national development.
On his part, Mallam Sanusi said that in an economy that is monolithic and import dependence that is susceptible to shock either through global oil prices or the activities of militants in the Niger Delta, such huge spending on one arm of government was unnecessary.
He described Nigeria as a country that imports what it produces and exports what it does not have.
According to him, “Nigeria is the sixth world producer of crude oil, 8th in natural gas, but imports petroleum products; Nigeria finds it difficult to get the tenets of democracy but exported democracy to Liberia; it is a country that finds it difficult to generate 4,000 MWT of electricity, but exports power to Niger Republic; it is the world’s number one in terms of cassava production, but no starch and ethanol industry that can create jobs to engage its teaming graduates”.
The CBN boss opined that because such structural deficiency and policy problem, government finds it difficult to create job, adding “the problem in the country is not about knowing the solution to the problems, but because the solutions is not in the interest of a small group of people who always want to hold the country to ransom”.
He noted that if Nigeria desire to develop it must get its policies right, break away from the past (dictates of foreign powers), encourage the establishment of private refineries and focus on reform.
“The major reason why Asian economy is advancing while that of Nigeria and most African countries retrogress is that whereas Asian Countries say no to IMF loan and its conditionality, Nigeria and other African Countries are saying yes”, Sanusi said.
From Adibe Emenyonu in Benin City, 11.27.2010
UBA Begins Operations in Mozambique
UBA Mozambique Will Initially Roll Out Two (2) Branch Locations,Brings To 18 The Number Of Countries Where UBA Has Presence in Africa.
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United Bank for Africa; the pan-African financial services institution has announced the commencement of banking operations in Mozambique. UBA Mozambique as it called opened its doors to the public on Monday November 22, 2010 following approval by the Central Bank of Mozambique.
The launch of its operations in Mozambique follows that of UBA Guinea that opened on Monday February 8, 2010 and brings to 18 the number of countries where UBA has presence in Africa.
UBA Mozambique will initially roll out two (2) branch locations, both in the capital city of Maputo, with head office branch at Praça 16 de Junho, 312, Malanga. The second branch is located at Avenida 25 de Setembro, 1226.
The bank is strategically positioned to lead the Mozambican market in providing comprehensive financial services solutions, leveraging its Group presence in East and South African countries namely Uganda, Kenya , Tanzania and Zambia with common borders to support multinational and local corporates cross border transactions.
Mozambique will offer its wholesale and retail clients, e-banking solution with high added value, giving them access to UBA’s product range driven on African and global network.
UBA has also announced the appointment of Clement Isikwe, as CEO UBA Mozambique, and Kebiru Momodu, as Country Chief Operating Officer (COO). Both very well experienced bankers have been on ground Mozambique to supervise the roll out and ensure a smooth take off of banking operations in the country.
CEO UBA Africa, Rasheed Olaoluwa commended the duo for leading their team to fulfill the regulatory requirements that enabled UBA Mozambique to commence operations and thanked the government and people of Mozambique for giving UBA the opportunity to extend its franchise to the country.
“We hope to make significant contribution to the development of banking and the economy in general Mozambique, leveraging on our group financial strength and expertise in the continent” he stated.
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