The Big 5 Nigerian banks - To sell or not to sell
NaijaRock
Home | Anything | ( 1 ) | Subscribe
Posted by Felix Okoli on September 07, 2009 at 07:31:04:
It is no longer news that Nigeria has the strongest banks in West Africa and among the largest in the entire African continent, rather, what seems to be making news is the issue of selling them off. It appears that going by recent news and opinions, the Central bank of Nigeria is too disposed to the idea of selling them off to foreign investors. To what gain, I may ask? To what benefit will it be to the Nigerian shareholders and economy as a whole? I have said times without number that the way the CBN has been handling the issue of unsafe banks in Nigeria is not good for the economy. The negative publicity which the CBN has given Nigeria's banking industry is not good for the economy as it makes us non-attractive to foreign investors and has contributed to the unending falls in the stock prices especially for banks. Well, while i agree that the banks involved had been declaring unusual profits and returns in a time of increasing global recession, a softer approach ought to have been followed without resorting to witch-hunting.
A lot of people in the banking industry especially the Southerners who control the majority stake in the industry feel that the current CBN governor Sanusi has a northern agenda. well, it is not that bad to be patriotic to your region but the bottom line is the safety of investors.
Why did most of those directors get involved in money laundering, unsecured loans and cosmetic accounting, frivolous spendings and even some of them had private jets! . I think even their auditing companies also ought to be probed. How could they have been telling shareholders times without number that the final accounts present a true and fair view all these years without discovering all these fraudulent details. Well, if the involved banks feel that they have been wrongly defamed or accused they could still prove themselves innocent in the courts of law. I don't support the idea of selling the banks to foreigners rather the CBN may keep on managing the banks using the directors it has already appointed and the bail out funds already given to the banks
Comments:
It is no longer news that Nigeria has the strongest banks in West Africa and among the largest in the entire African continent, rather, what seems to be making news is the issue of selling them off. It appears that going by recent news and opinions, the Central bank of Nigeria is too disposed to the idea of selling them off to foreign investors. To what gain, I may ask? To what benefit will it be to the Nigerian shareholders and economy as a whole? I have said times without number that the way the CBN has been handling the issue of unsafe banks in Nigeria is not good for the economy. The negative publicity which the CBN has given Nigeria's banking industry is not good for the economy as it makes us non-attractive to foreign investors and has contributed to the unending falls in the stock prices especially for banks. Well, while i agree that the banks involved had been declaring unusual profits and returns in a time of increasing global recession, a softer approach ought to have been followed without resorting to witch-hunting.
A lot of people in the banking industry especially the Southerners who control the majority stake in the industry feel that the current CBN governor Sanusi has a northern agenda. well, it is not that bad to be patriotic to your region but the bottom line is the safety of investors.
Why did most of those directors get involved in money laundering, unsecured loans and cosmetic accounting, frivolous spendings and even some of them had private jets! . I think even their auditing companies also ought to be probed. How could they have been telling shareholders times without number that the final accounts present a true and fair view all these years without discovering all these fraudulent details. Well, if the involved banks feel that they have been wrongly defamed or accused they could still prove themselves innocent in the courts of law. I don't support the idea of selling the banks to foreigners rather the CBN may keep on managing the banks using the directors it has already appointed and the bail out funds already given to the banks
Comments:
-
Re: The Big 5 Nigerian banks - To sell or not to sell
Posted by Engr Agu, Benjamin on September 15, 2009 at 05:46:47:
In Reply to The Big 5 Nigerian banks - To sell or not to sell I believe the issue here is that any objective should be geared toward making this country great and helping in any manner to actualising the vision 2020. Let the poor benefif for the first time in governance.
Re: The Big 5 Nigerian banks - To sell or not to sell
Posted by Felix Okoli on September 15, 2009 at 05:46:47:
In Reply to The Big 5 Nigerian banks - To sell or not to sell I agree with you. The masses should be considered more when dealing with this kind of issue.