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CBN not establishing an Islamic bank, says Sanusi
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BN Governor, Malam Sanusi Lamido Sanusi, says the apex bank is not in any way promoting or establishing an Islamic bank in Nigeria, contrary to speculations in some quarters.
Sanusi made the clarification on Monday in Abuja, at a two-day International Conference on Non-Interest Islamic Banking.
The Central Bank is not promoting or establishing Islamic bank, the Central bank is simply licensing and regulating an institution that is allowed to exist under the law.
To the extent that this bank is not allowed to deny anyone the opportunity to be a stakeholder and to the extent that they do not deny anyone to set up his own bank.
There is absolutely no discrimination. We have to continue making that point, hopefully, people will get to understand with time,’’ he said.
He maintained that those who felt that what the apex bank was doing was illegal should go to the court of law.
According to him, the bank will stop the establishment of non-interest Islamic banking if the court says it is illegal.
But we don’t think the court will say so because we know we are acting within the realm of the law but it is only the court of law that can make a pronouncement on the legality of anything.
So if anybody says it is illegal, then he should go to the court of law and let the law pronounce the legality or illegality of it,’’ he said.
Sanusi said that the non-interest banking had been practised in about 435 institutions and in about 75 countries in the world.
He said that with the guidelines in place, Nigeria was set to join the league of other countries to benefit from the non-interest banking.
To ensure effective operations, he said, Nigeria had joined the Islamic Financial Service Board and ensured collaboration between Securities and Exchange Commission and Nigeria Deposit Insurance Corporation. (NAN)
Bank Crisis Will be Over Soon - Sanusi
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The Central Bank of Nigeria (CBN) Governor, Mallam Lamido Sanusi, has stated in Lagos, that the crisis currently rocking some of the nation’s financial institutions would soon be a thing of the past.
Giving the assurance on Tuesday, at the official commissioning of Super-flux International new ultra-modern factory in Lagos, the CBN governor argued that with the various reforms put in place by the apex bank, the troubled financial institutions would bounce back by the end of the second quarter of the year.
He stated that the introduction of Asset Management Company of Nigeria, by the apex bank, would go a long way in helping some of the troubled banks dispense off their toxic assets, which in turn will go a long way in enhancing the health of such banks.
The company was set up to help recapitalise banks rescued in a N620 billion or $4 billion CBN bailout in 2009 and to restore lending in nation’s economy.
Mallam Sanusi added that the recapitalisation exercise, put in place by the apex bank which was expected to end in the first of the year, would enable financial institutions in the country shore up their base and empower them with the needed capital to run their businesses.
The CBN boss argued that with the level of interest being shown by investors both within and outside the shores of the land in the nation’s financial sector, the crisis in the sector would fizzle out by the end of June, this year.
IBB Congratulates Jonathan
The Nation News
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FORMER presidential aspirant, General Ibrahim Badamasi Babangida, Friday congratulated President Goodluck Jonathan for defeating ex-Vice-President Atiku Abubakar to win the presidential ticket of the Peoples Democratic Party.
Babangida, who personally signed a statement, urged Jonathan to be magnanimous in victory.
The statement reads: "I, Gen. Ibrahim Badamasi Babangida, GCFR wish to congratulate President Goodluck Ebele Jonathan, GCFR for his landslide victory at yesterday’s presidential primaries of our great party, the the Peoples Democratic Party (PDP), held at the Eagles Square, Abuja.
"His victory at the primaries is not only personal but to all members of our great party; to lovers of peace, unity and progress; and to all those who believe in democracy and Nigeria.
"I therefore urge him to be magnanimous in victory and carry along with him those who lost at yesterday’s event. This is the only way we can bury the intra-party differences and bitterness that preceded the primaries.
"Special congratulations to former Vice-President, Alhaji Atiku Abubakar, for putting up a gallant fight and braving all the odds to make an impressive showing at the primaries. History will always give him a place of pride for his tireless efforts to enthrone democracy in Nigeria.
"My admiration also goes to the woman of substance and courage, who never gives up –Mrs Sarah Jibril- who has since 1993 sought every opportunity to offer her services as the President of this country.
"Even though she has not succeeded, history will one day say this is the woman who saw tomorrow when eventually Nigeria elects a woman President.’’
World Bank Rates Nigeria’s Growth Forecast Ahead South Africa’s
Executive Commissioner, Finance and Administration, Securities & Exchange Commission (SEC), Lawal Sani Stores (left); Director General, SEC, Arunma Oteh; Governor of Zamfara State, Mahmuda Aliyu Shinkafi; Executive Commissioner, Operations, Daisy Ekineh; and Executive Commissioner, Legal and Enforcement, SEC, Charles Udora, During The Governor’s Visit to SEC Headquarters in Abuja.
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The World Bank on Thursday boosted its growth forecast for Nigeria, second-largest economy in Africa ahead of that of South Africa, leading economy in the continent.
The global lender noted that the growth forecast for Nigeria, Africa’s biggest oil producer, will rise to 7.1 percent in 2011, from a previous estimate of 5.7 percent.
The bank also stated that the federal government spending on infrastructure projects and growth in non-oil industries should help support the economy, which is expected to grow 6.2 percent in 2012.
The World Bank raised its forecast for economic growth in Sub-Saharan Africa to 5.3 percent in 2011 as the global economy recovers and the outlook improves for oil producers such as Nigeria and Angola.
Growth in the world’s poorest region will pick up from an estimated 4.7 percent in 2010, the Washington-based lender said in its Global Economic Prospects report on its website on Thursday.
On June 9, the Bank had predicted growth of 5.1 percent this year.
“Growth is expected to be driven by continued recovery in the global economy,” the World Bank said, pointing out that “developments in domestic demand will continue to play a dominant role.”
South Africa’s economy, the biggest on the continent, will probably expand 3.5 percent this year and 4.1 percent in 2012 as the government steps up spending on infrastructure projects and consumer spending rebounds, the bank said.
Those are in line with forecasts published by the National Treasury on October 27.
The rand’s 12 percent surge against the dollar since June 1 is hindering exports, undermining growth in manufacturing, the World Bank said.
The currency was trading at 6.8467 against the dollar as of 10:21 a.m. in Johannesburg from 6.8364 late Thursday.
“South Africa has been and is likely to continue to be affected by the appreciation of the rand;” the bank said, saying manufacturing “has become increasingly less competitive because of rand appreciation.”
Angola, Sub-Saharan Africa’s second-largest oil producer, will expand about 6.7 percent this year and 7.5 percent in 2012. Ghana, which began exporting oil for the first time this year, will have the fastest growth on the continent at 13.4 percent in 2011 and 10 percent in 2012, the World Bank said.
The outlook in Kenya, East Africa ’s biggest economy, “remains favourable,” with growth of 5.2 percent expected for this year and 5.5 percent in 2012, the bank said. While Kenya is benefiting from rising trade with the rest of the region, drought could damage agricultural output, derailing the growth outlook, the bank said.
The biggest risk to Africa ’s growth prospects is another slump in the global economy as most countries on the continent have “depleted the fiscal space they had created during the pre-crisis period and have not had time to rebuild it,” the World Bank said.
Fiscal austerity programmes in Europe, which is Africa’s biggest trading partner, may hamper the growth outlook, it said.
‘Banking Reforms Unprotective of Workers’ Jobs’
The Nation Reports
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The Central Bank is the bankers’ bank. It protects the banks and their customers. The economy of a country, more or less, lies in the hands of the Central Bank, and banks are major players in the economy. In managing the economic stress of a country, the Central Bank must play a balancing act. It must not embark on policies that may kill the banks, and at the same time it must ensure that the banks don’t toy with depositors fund.
In 2009, the Central Bank of Nigeria (CBN) in bid to protect the economy took certain measures against some bank chiefs, who were found wanting. The CBN action still echoed in the banks last year. This has put fears in mind of ASSBIFI for this year.
The Association has cautioned CBN against selling ailing banks to foreign investors as being contemplated. Such a sale, ASSBIFI believes, will undermine the country’s financial autonomy and economic sovereignty.
In its New Year message to workers, signed by the National President, Comrade Salako Sunday Olusoji, ASSBIFI said such sale would lead to loss of jobs and closure of indigenous companies.
Lamenting last year’s loss of jobs in the sector, Salako said: "It is significant to point out that the sale of the banks to foreign investors would further undermine our financial autonomy and economic sovereignty to the same lackeys of neo-liberalism that want to hijack all the strategic areas of our national economy for their private and individual exclusive exploitation.
Nigerian Troubled Banks Get A Chance to Dump Toxic Assets
TTimesworld
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Lagos, Nigeria - About 21 banks in Nigeria are set to transfer their non-performing loans to the newly-created Asset Management Corporation of Nigeria (AMCON), in exchange for one trillion naira bonds, the local press reported Thursday (US$1=150 Naira).
The transfer will take place Friday, at a ceremony to be witnessed by Finance Minister Olusegun Aganga, Central Bank of Nigeria (CBN) Governor Lamido Sanusi, Debt Management Office (DMO) Director General Abraham Nwankwo AMCON Chairman Aliyu Belgore and the Chief Executive Officers (CEOs) of the 21 banks.
The report quoted AMCON Chief Executive Officer Mustafa Chike-Obi as saying that one bank was yet to submit its toxic assets portfolio, while Standard Chartered Bank and International Bank (Citigroup) said they have no bad loans to hand in.
Although only the banks which the CBN assisted last year are under obligation to submit their bad loans to the AMCON by 15 November 2010, Chike-Obi said buoyant banks also have an opportunity to offload problematic loans.
He estimated the bad loans submitted by the 21 banks, including the nine rescued by the CBN, at 2.5 trillion Naira.
Finding Those Responsible For Nigerian Banks Failures
By Prof. Femi Ajayi
Finding Those Responsible For Nigerian Bank Failures - With Commentaries From You
By Prof. Femi Ajayi - Send Your Comments to editor@ttimesworld.com
Finding Those Responsible For Nigerian Bank Failures - With Commentaries From You
By Femi Ajayi - Send Your Comments To: Editor@ttimesworld.com
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.
US Unemployment Rate Hits Seven-Month High.
BBC Report.
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The US unemployment rate rose to 9.8% in November, the highest rate since April, the US Labor Department has said, raising fears about the strength of the country's economic recovery.
Just 39,000 jobs were created last month, below analysts' expectations. In October, 172,000 jobs were created.
Stocks markets fell sharply after the figures were published.
Analysts are concerned that the levels of high unemployment in the US are undermining the economy's recovery.
Market shudder
Wall Street opened lower, while the UK's FTSE 100, France's Cac 40 and Germany's Dax share indexes all fell back into negative territory for the day on the back of the figures.
The euro jumped an entire cent against the dollar, to $1.335, following the data release.
The jobs number is a first estimate, and could be revised in the coming months.
The US Labor Department said 15.1 million people were now unemployed in the US, equating to a rate of 9.8%. This is an increase from the 9.6% rate recorded in the previous three months.
Jobs were created in the business services, healthcare and mining sectors, but job numbers in the retail and manufacturing sectors fell.
Discouraged workers
Analysts were distinctly underwhelmed by the jobs figures.
The worst news was that the jump in the unemployment rate was not driven by an increase in labour force participation, according to economist Bill McBride on his Calculated Risk blog.
During the slump, many redundant workers gave up seeking new jobs altogether, meaning that they dropped out of the official labour force, and out of the unemployment figures.
As the jobs market improves, economists expect these discouraged workers to start looking for work again, meaning they would be reclassified as unemployed.
But the data suggests this has not happened yet.
Instead, the rise in the unemployment rate is simply due to a failure of US job creation to keep up with the growing US population.
India's impossible inflation
Prices rocket because of an imperfect market. A solution? Empower consumers using technology to let competition flourish
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The Indian economic story has been marked in the last decade by outstanding success. The stock exchanges have outperformed leading indices worldwide, the demographics are favourable and the IT outsourcing sector continues to boom. Inflation presents an aberrant thread running through this story. Aberrant because it works not on the basis of how much money consumers have, but on the basis of how little consumers know.
If we look at the numbers, Indian inflation was historically at its lowest in the last 10 years when the economic boom was at its peak. This year, with growth set at 9.4%, as per the IMF's 8 July forecast, India will likely suffer from double-digit inflation. By contrast, in 2008, growth was a healthy 9%, while inflation was only 6.4%. A bad monsoon last year has been repeatedly blamed for this upsurge, but grain lies rotting in government warehouses.
India's problems are unique, because it is possibly the most inefficient market in the world. Two historical phenomena are to blame for this.
First, changes in the Indian economy in the early part of the 20th century led to the value of labour, innovation and management plummeting and the value of capital rising disproportionately high. This imbalance continues to this day. Our employment laws are a joke, our scientists staff the top 40% of Nasa, but research lags at home and corporate governance is in its infancy, to put it politely.
Second, Gandhi's freedom movement and Nehru's socialist politics have made profit a dirty word. Although the government's economic liberalisation efforts helped some, Indian capital still continues to be in the unique position of being both extremely powerful, and strongly despised. This is not a good combination, and as a result corruption flourishes, healthy competition is nipped in the bud and middlemen work at the expense of the disorganised producer and the consumer.
A workable solution to this problem is to empower the consumer with knowledge. In 2002, an Indian conglomerate started an experimental internet portal. This portal worked at bringing transparency to the supply side of Indian commodities. By logging in, farmers could check current prices of commodities, and arrive at a good deal.
It is impossible to adequately convey the importance of this knowledge to a western readership. It can mean the difference between starvation and prosperity. A lack of regulation, entrenched purchasing cartels and chronically low social capital means that if not forced, middlemen will give the worst possible deal to the farmer. On the flipside, if not forced, shopkeepers, grocers and retail outlets will and do give the worst possible deal to the Indian consumer. Commodities are largely unbranded, retail is a "mom and pop" sector and consumers are woefully ill-informed. The consumer purchasing groceries or vegetables simply has to take the word of the vendor that he is paying a fair price.
On 25 June, for example, the price of diesel increased by two rupees in India. Diesel is important because most of our commodities are transported by road in diesel-burning vehicles. A 0.9% increase in inflation in wholesale prices was expected. Prices of commodities have instead gone up within two weeks by 15%. Prices of vegetables have gone up by between 35% and 100%. This is sheer carpetbagging opportunism by retailers.
Experience tells us that were the price of diesel to drop tomorrow, these increases would not be reversed. Price increases in India defy the laws of physics. The trick is to curb the initial upswing itself. Much like the portal for farmers, we need an internet portal for the Indian consumer as well: one that allows retailers and grocers to text in prices they can offer for unbranded commodities and vegetables, and arranges these prices by city/town and by five-mile areas within cities. This portal would need to be designed to be lightweight, so that it is accessible to the many Indian consumers with low internet bandwidth, and it should also be able to respond by text message to standard price enquiries by consumers.
A consumer setting out for his monthly grocery shop will check and home in on the shop offering the best deal, within his five-mile radius. Similarly, the weekly vegetable shopping trip could become less uncertain. Such a portal would allow true competition to flourish and would reduce opportunism. It would not be difficult to administer in a country where nearly every urban adult has a mobile and where chip-makers run text-based competitions more complex than this.
Consumer Reports Says Apple IPhone 4 Has `Significant' Flaw
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Consumer Reports said it isn’t recommending Apple Inc.’s iPhone 4 following tests confirming the handset has a hardware flaw that causes signal quality to degrade.
“The problem seems to be a design flaw, and it is significant,” Mike Gikas, senior electronics editor for Consumer Reports, said today in an interview. The publication has recommended the three previous iPhone models.
Tests were conducted in a room designed to eliminate radio- frequency interference, he said. The results showed that when a user covers the phone’s lower-left side, where two parts of the external antenna meet, the loss of signal strength may lead to dropped calls in areas where AT&T Inc.’s coverage is weak. The tests suggest AT&T’s network, often criticized for spotty iPhone coverage, isn’t responsible for the signal problems.
AT&T is the iPhone’s exclusive carrier in the U.S. Apple says the problem is software-related and involves how the phone displays signal strength. A fix will be released, the company said on July 2.
“If the signal is strong in the area, then you won’t lose the call,” Gikas said. Consumer Reports is published by the nonprofit Consumers Union, based in Yonkers, New York.
Natalie Kerris, a spokeswoman for Cupertino, California- based Apple, didn’t immediately return phone and e-mail messages seeking comment. Mark Siegel, a spokesman for AT&T in Dallas, had no comment.
More Phones Tested
Consumer Reports also tested other phones, including Apple’s older iPhone 3GS, and the Palm Pre, and found they didn’t suffer from the same problems as the iPhone 4, Gikas said.
Gikas suggested that users who experience the problem apply duct tape, which doesn’t conduct electricity, to the gap in order to reduce the chance of causing signal interference.
Apple has faced criticism since the phone went on sale June 24, with consumers complaining about losses of signal strength when holding the phone along its left-side black stripe.
Apple fell $2.34 to $257.29 at 4 p.m. New York time on the Nasdaq Stock Market. The shares have gained 22 percent this year.
To contact the reporter on this story: Arik Hesseldahl in New York at ahesseldahl@bloomberg.net
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