Sanusi Accuses Govs, Senators, Politicians Of Banks Failure In Nigeria
ASABA, July 09, (THEWILL) - The incessant failure of Nigeria Banks has been attributed to loans taken from banks by state governors, politicians and senators without any recourse to redeem such loans as stipulated in the banking law. Governor of the Central Bank, Mallam Sanusi Lamido Sanusi, who made this shocking revelation today in Asaba while delivering a lecture at the first series of the Professor Sylvester Monye Foundation titled, “The Economy In Perspective: Consolidating The Gains of The Banking Sector Reforms” also described most Nigeria banks as gamblers. The apex bank helmsman accused them of gambling with depositor’s money, and colluding with stock markets where consumers are turned to casino players.
The CBN Governor while warning depositors from entrusting their money with banks he called "gamblers” lambasted politicians for being behind the plights of the nation's failed banks adding that the market that was in the past performing in 2007 turned out worse in 2009.
He said although financial crisis is an integral part of every capitalist system, banks should stop preventing depositors and investors from what he described as ‘Technical and Fundamental Analysis and Investors' Sophistication.’
According to him, "We had a banking system in the past that was exposed to the capital market but without guidelines and regulatory system on lending margin. In the stock market, what people think about is how it will go up. But this market, this casino, is what those entrusted with depositors money gamble with.”
On the way out, he advocated for a Bank Use Act that will make the banks to get out of what he described as "Insurance Business and Fixed Income Bubble", assuring the gathering that current and saving accounts of depositors would no longer be used by banks to service insurance businesses, construction of roads and bridges by governors, senators and political office holders, he said "the days of Intercontinental Bank's 30% ownership, Ibru's family 40% ownership Afribank's 12%, aside all other bad loans, are gone." While he warned the banks to stop creating the impression that they have values when in the actual sense they are dying, he said, "A stock market is a very funny casino. Don't entrust your money with gamblers. CBN rules and regulations around the banks are uncompromiseable. We are not just doing the sanctioning thing, we are combing the banks for excellence.''
Earlier, Professor Sylvester Monye of ‘The Knowledge Centre,’ Onitcha Ugbo, Delta State said the foundation is a charitable organization with specific focus on the promotion of the development of knowledge as a key source of empowerment for the youth and less privileged ones in the country. The event which was chaired by the former Head of State, Chief Ernest Shonekan, had the host Governor, Dr. Emmanuel Uduaghan, his Anambra State counterpart, Peter Obi, joined by Mr. Albert Okumagba, Group Managing Director, BGL Plc and Jean Louis Ekra, President of Afreximbank, Cairo, Egypt are the confirmed discussants.