When the Honorable Minister of Finance, Mrs Kemi Adeosun, in
Washington during a discussion on the importance of addressing infrastructure
gaps in developing countries at the World Bank accused the western powers of
being a stumbling block to Nigeria’s plan to improve power output through the
use of coal, many took the statement on its face value.
When a deeper dive into the deconstruction of the weight of
the conscious economic underdevelopment of Africa perpetrated by some external
forces, with Nigeria fully caught in the web is x-rayed, only more pain would
be felt in the game plan of the heart-wrecking mastermind of some international
conspirators. The weight of our challenges and the complexity of the
consequential stress across sectors today, can hardly be resolved by mere UN
talk-shops, World Bank meetings and other international economic summits, but
concrete action, including fast release of Nigeria’s stolen funds given to our
friends to hide in their banks.
When Walter Rodney in his book, How Europe Underdeveloped
Africa, insisted that a combination of power politics and economic exploitation
of Africa by Europeans led to the poor state of African political and economic
development evident in the late 20th century, this did not go down well with
their local agents, who pound their yams with sizeable sacks hanging underneath
their robes.
The man, Rodney had determined that the only path to true
human development and liberation for the majority of the people was through the
transformation of their own lives in a struggle to replace and reshape the neo-colonialists
government that dominated the society and prescribed their existence.
While we recall various predictions of how former President
Goodluck Jonathan was said to be the last president of a united Nigeria, and
how Nigeria would surely disintegrate in the year 2015 by some western
‘prophets’ with former American Ambassador to Nigeria, Mr. John Campbell
seemingly the most interesting, time has come for those of us actually wearing
the shoes to know where the pain points are and when we actually have a
headache. Professor Adebowale Ibidapo Adefuye actually took on the former US
envoy, John Campbell and called him, ‘a prophet of doom’.
Typical of our media ideologues, sensational and alarmist
headlines and the hurry to break the scoop, Bloomberg, recently went to the
market with a story on the under-capitalisation of some banks in Nigeria, with
two declared almost insolvent. Only a few wise Nigerians, received that story
with caution and a large dose of scepticism. This financial online platform, had
given credit to two staff of Dubai’s Arqaam Capital Limited, Jaap Meijer and
Tarek Sleiman, who were said to have emailed the report. For some public
opinion analysts and indigenous financial experts, this came like an external
examiner who did not see a student’s course curriculum, did not get involved in
the lectures, did not supervise the examination, but chose to dabble in to
challenge the scoring of the exam paper by the qualified teacher, who taught
the subject. Central Bank of Nigeria (CBN), the regulator of the Nigerian
financial services establishments got the shock of their life by the Dubai
infiltration.
The apex bank quickly
rose in defense of the country’s financial independence, speedily cross-checked
records, files and the last submitted financial reports of these banks in its
possession and had to embark on a series of meetings to dispel the threat and
its overwhelming spill-over in the sector and among simple-minded Nigerians.
The Central Bank of Nigeria (CBN), has firmly and unequivocally said that
Nigerian banks have very strong capital buffers to weather the country’s
economic crisis.
Director of Banking Supervision, CBN, Tokunbo Martins, said
this at a press conference after a meeting with the heads of the country’s
banks. She also assured that supply of foreign exchange for manufacturers would
be improved.
She emphasised that Nigeria, which is Africa’s biggest
economy, is in recession due to a slump in vital oil revenues which has put
pressure on the public finances and the currency, driving up the prices of
imported goods.
This timely clarification became necessary due to that
report by a Dubai-based investment and brokerage firm, Arqaam Capital which
indicated that seven Nigerian banks were undercapitalised to the tune of N1tn
($3.2bn) withtwo other banksapproaching insolvency.
While an unconfirmed report still being investigated
described the team from Aqaam Capital as financial undertakers who have their
left eyes focused on our government’s body language towards the sale of some nation’s
assets, it is also being speculated that they have pushed a button to grade the
roads for their principals who have hidden interest incubated for some Nigerian
collaborators. It is possible that their kite-fly against some Nigerian Banks,
is a very suspicious move aimed at blocking some competition, should the
federal government make-up its mind. The
events of the last few days are actually bizarre.
The spokesman for First Bank, Mr. Babatunde Lasaki, said,
“First Bank is not undercapitalised. We are still within the industry
regulatory threshold. This is their opinion. Our position has been published in
our half-year report; it is not the one from an investment bank or a
speculative reporter. Our Q3 report will soon be published.
First City Monument Bank (FCMB) has also confirmed that the
Bank is fully capitalised and it’s current CAR (capital adequacy ratio),
adequately meets the basic requirement of the Central Bank of Nigeria
(CBN).Contrary to the claim of the Dubai firm, FCMB has actually expanded its
operations this year by opening several new branches.
Also reacting, a spokesman for Diamond Bank, Ikechukwu Mike
Omeife, said, “Our bank is strong. Our capital-adequacy ratio and
non-performing loans are within the statutory requirements.”
Matthew Obiazikwor, who is the Head of Corporate
Communication at Unity Bank insisted that Unity Bank was still meeting its
obligations, saying, “Our financial position has been enhanced. We have just
moved our head office to Lagos in order to be closer to the market and retail
market. All these strategic investment decisions have shored up market
confidence in the bank.”
Similarly, a top official of Skye Bank, who spoke on
condition of anonymity, said the bank was not close to being insolvent as
alleged by Arqaam Capital. The source said the Central Bank of Nigeria had
issued a statement, stating that the bank was not distressed.
To create a capital buffer, Sterling Bank is planning to
issue a N27bn bond and “if the interest rate looks better, we will do it this
year,” the Sterling Bank Chief Financial Officer, Abubakar Suleiman even told
Bloomberg.
While the Nigerian banks cannot be insulated from the
tension of full implementation of the TSA policy, the slump in vital oil
revenues which has put pressure on the public finances and the currency,
driving up the prices of imported goods, the forex headaches and the global
economic slow-down, it must be agreed that the yardstick for the measurement of
their liquidity, capital base and the depth of Non-Performing Loans, and the
rating of capacity to weather the storm amidst the enlisted realities, is
designed and decided by the Central Bank of Nigeria (CBN), which has not
suspended any Bank’s licence, and has assured us that all our banks are safe.
Our external examiners, descendants of our colonial masters, must be watched
really carefully.They cannot be crying more than the bereaved.
No comments:
Post a Comment