bank reforms

This banking reform by the current Central Bank of Nigeria's Governor, Mallam Sanusi Lamido Sanusi is bringing up lot of issues that are detrimental to the growth of the economy. I think if these issues are not loooked into and resolved by the Acting President Goodluck Jonathan, the economy would takes year to get it back on track. Has the economy derailed? YES.
The Governor of Central Bank of Nigeria when appointed sent auditors/examiners to look into the books of some banks in Nigeria for long non performing loans. He started with ten banks and after some weeks, the verdict came that five banks were distressed. The banks are Union Bank, Iintercontinental Bank, Oceanic Bank, AfriBank and Finbank. Immediately, without allowing the management of those banks to defend themselves, out they went.
The Governor without approval of the Senate of the Federal Republic of Nigeria, printed new Naira notes and imported them to bail out the 'perceived' distreesed banks. Also the management and in some banks the board members were labelled criminals and handed over to Economic and Financial Crime Commission for prosecution. Advisers/Managing Directors and directors were appointed for the rescued (that is the new slang instead of distressed) banks. The banks were to adhere to banking guidelines and give full disclosure of their activities.
The guidelines were 'good' but the noise accompanying the removal of the Managing Directors and Directors of those banks had a negative effect. Depositors fearing the repeat of trapped money in distressed and failed banks quickly started withdrawing their money. The Governor and his lieutenats have to start campaigning that depositors should not withdraw their money that the banks have been bailed out of distress and their money is safe. Did that work? Somehow it did. The enlightened banking public returned their deposits. Later sentiment and loyalty made others to return to those banks. But are things the same way that it was before? NO.
The price paid for these banking reforms by the economy and the people is really high.
First, confidence reposed on the banking industry by the public was shattered as the CEOs were sacked. Even Nigerians living abroad that used to remit money back home for developmental projects stopped. The capital inflow into Nigeria stopped because of the fear of money being trapped and not used.
Secondly, about ten thousand (10,000) bank workers have lost their jobs since this reforms started. The staff left untouched do not know when the matching order to leave will come but the reduction in salary has come. I went to one of the affected banks recently to conduct a transaction and was shocked at the empty tables around. One of the lucky staff said the tables would be removed soon since employing new staff would not be immediate. Even the banks that were given clean bill of health have embarked on cost-cutting measures including reduction of salaries. An in-law working in one of the affected banks told me their other emoluments were stooped so he had to ask his driver to go. The Indian man i worked with before told me that the survey he conducted showed that for every one Nigerian employed, Four others are dependent on that one employee. So 10000 x 4 means 40000 Nigerians are out of jobs and reular income. This is sad. Banks which used to employ fresh graduates have stopped hiring and new branches are not opened. We are all waiting and hoping and praying.
Thirdly, credit to the manufacturing industries and fuel marketers have stopped. No more loans to import fuels. Now we have long queues at the the Fuel filling stations. Time and energy expended in buying fuel and diesel could have been used in something else but in Nigeria we have to suffer because Sanusi is sanitising or witch hunting those who opposed his appointment as Governor in the banking industry. Banks are recalling loans that are performing and are scared to give out new loans to businesses.
Fourthly, With the PHCN being perpetually out of gas and no fuel to power generators, our health is affected by Sanusi's banking reforms.
Did the new CBN Governor, MALLAM LAMIDO SANUSI acted wisely in these reforms?
My answer is NO.

GOODLUCK JONATHAN

Man Goodluck Jonathan, the acting President of the Federal Republic of Nigeria and the Commander-in-Chief of the Armed forces is an extremely lucky man. Although the write up below is supposed to be funny but there is an element of favour in the affairs of our former Vice President and current Acting President.

“In your own (best) interest, no matter the position you are offered in ANY organisation (Office, Church, Meeting/Club, Party Planning, Tenants’ Association, Activist, etc), if your Deputy is named "Goodluck”, PLEASE DECLINE... even if it is UN Secretary General or Head of African Union, whatever, JUST DECLINE!

Should you think I am joking, check these facts:

Goodluck was Assistant Head Boy in primary school. The Head Boy got expelled. Goodluck took over.

Goodluck was Assistant Senior Prefect in secondary school, the Senior Prefect died, Goodluck took over.

Goodluck was Deputy Local Government Chairman. The Chairman got implicated in corruption and got removed from office. Goodluck took over

Goodluck was deputy governor to Alameiseigha. Governor Dipreye Alameseigha was impeached by the Stat lawmakers and Goodluck became the Governor of Bayelsa State despite his reluntancy.

Goodluck was Vice President to President Umaru Musa Yar’Adua:-Behold he became sick - PERICADIATIS!. He is away for months now and no one could ascertain his true state of health. Again Goodluck is called upon to take over.

You may think this is coincidence, but don’t you think the coincidence is too much?''

Whether it is coincidence or it is a fact, Acting President Goodluck Jonathan is a lucky guy. He has always been lucky even as an ordinary citizen. He was just in his house when Alameseigha and a friend walked in and he was offered Deputy governorship of his state, Bayelsa. He laughed it off but few months later he was sworn in as the Deputy Governor of Bayelsa State. That is favour of God. His name Goodluck is sure working for him.

Congrats Presido Goodluck Jonathan!. May you reign brings peace. economic growth, political stabilty, infrastructural development and security to life and property. May your reign as the President of the most populous black nation ends well.

Ailing President Yar'adua

President Umaru Musa Yar'dua is still not back from the medical trip or holiday he travelled to Saudi Arabia for. When he left the country in November 2009, it was with the intention to treat the acute pericarditis and return back to the country to continue his job as the President. He did not deemed it fit and proper to hand over to his Vice since he thought he would be gone for just few days. He has always been doing it and Nigerians would look elsewhere but this time around it was not to be. There is a saying that man plans but God is the one with the final word say ie man proposes but God disposes.
Now the President has been away for months without handing over or transfering authority to his Vice-President. This has led to power vacuum. The prolonged absence has affected practically all aspect of the country. For instance, the year 2010 budget has not been signed and people like us who draw salary from government are still waiting. In our own case, we recieved the last salary from Ajaokuta July 2009. The Minister Deziani Allison Madueke warned us not to expect any salary for the year again. She claimed people are not working. Who is responsible? Is it not the Ministry that she is the Minister that has denied the company funds in order to ground us. If 3B Naira can be released for payment of salary, why cant only N400M (four hundred Million Naira) be releasesd for the plant to start production? The Nigerian Society of Engineers has advised severally that Nigeria has no right to sell off Ajaokuta Steel Company as its very viable. But the Ministry of Steel Development in Nigeria is only interested in the money to be shared out for the non existent audit of the plants. We are told the Russians are back for technical audit. What for? After the audit and members of staff are not paid salary, what happens? I do not see any staff going to wake up to go to work when owed five months salary. Is the audit not waste of resources? Abi which one be dis o.
In Nigeria, Governance is something else. Anyway, they are not to be blamed because the people did not vote for them so they are not accountable to us.
Goodluck Jonathan Should please step in and rescue this nation from failure. Nigerians have suffered much before now and the invisible President is not helping at all. I hope the First Lady, Turai Yar'adua will be responsible and reasonable enough to let us know if her husband is still alive or in a coma or dead. Nobody wishes the President dead but we cannot continue with this suspense as it regard th health of the number 1 citizen of this country called Nigeria.