Fresh plot against bank consolidation

By Our Reporter - 27.01.2008

Unease has gripped the financial sector following credible hints that the Yar’Adua government is considering the reversal of banking consolidation. The consolidation exercise, which was engineered and supervised by the Dr. Charles Soludo-led Central Bank of Nigeria, was successfully concluded on December 31, 2005.

But in a move that is geared towards reversing the gains of this exercise, highly placed sources close to a presidential working group, disclosed to Sunday Tribune that the group has almost concluded work on a proposal to be presented to President Umaru Yar’Adua on “Banking Reforms”. This working group is charged with working on the details of the seven-point agenda of the Yar’Adua administration.

The chief economic adviser to the president, Tanimu Yakubu Kurfi, Sunday Tribune learnt, is coordinating the process. Although, our source revealed that Kurfi was sick recently and had to be flown abroad but could not confirm if he was back in the country.

The case against consolidation, our sources revealed, is based on the view that “Northerners” lost out in the consolidation process, which was believed to have “placed the banking sector more in the hands of the Southerners”. This ethno-regional view of things, sources stated, is largely responsible for the move, even though it is being clothed in the “language of economics, fiscal policy and even development”. The working group is said to have considered the statistics indicating that consolidation shrank northern ownership of the banking sector to only eight per cent. Members of the inner circle of the Yar’Adua government who consider this “totally unacceptable” have resolved that the best way to reverse this without risking a backlash from the south with the resultant political crisis is to effect regionalisation of the banking sector which would enhance greater northern ownership.

Although a few voices in the group were said to have warned that the reversal may create un imaginable crisis in the economy and destroy growing confidence in the Nigerian economy, particularly the Stock market, the hawks in the group were said to have dismissed the predicted crisis on the basis of the fact that access by Northerners to the commanding heights of the economy through the banks, including bank directorship and its associated pecks, have been lost through consolidation and would have to be regained “anyhow”.

The deconsolidation that is being proposed as a policy response to the perceived “southern domination” of the banking sector include effectively limiting banks to strict zones of operation, that is regions. Despite the boom in the number of branches which has resulted from consolidation, deconsolidation will be advertised as the best method for achieving the aim of multiplying the number of banks in the country, and filling the landscape with supposedly smaller but nimbler banks.

The working group will also recommend that should the government consider regionalisation unattractive, it might be desirable for the public sector to acquire distressed banks such as Societe General Bank and Savanna Bank which would then be recapitalised and unleashed to compete in an altered financial landscape. Such acquired banks can then be used as instruments of reversing the “loss” of the “northern” region in the last consolidation, reasoned the members of the group.

Sunday Tribune gathered from informed actors in the financial market that this plan to insert government as an owner and operator of banks reflects the statist inclinations of the leading lights of the Yar’Adua administration. It is argued by the core of this group that a government whose hands have been removed from the commanding heights of the economy would have less “largess in the area of economic activities that it can distribute to its own supporters”.

Sunday Tribune learnt that bank chiefs, who already have hints of this proposal, are worried by the severe disruption that deconsolidation and regionalisation would cause and the ethno-regional undertones that are believed to be behind this. It is feared that it would endanger the health of the banking sector as the banking regulators would be overstretched. A financial expert added that there is nothing in the new plan that can guarantee the safety of so many small banks.

culled from vanguard

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SOMETIMES IT IS HARD TO SEE THE PLACE,GOD HAS CALLED YOU AS A PLACE OF BLESSING, BUT THATS WHEN YOU'VE GOT TO HOLD ON AND TRUST THE PROCESS
PEOPLE TEND TO DRAW OTHERS BACK FROM THINGS THEY SECRETLY WOULD HAVE LOVED TO DO BUT ARE NOT CAPABLE OR DARING ENOUGH TO DO
THEY WILL ALWAYS TALK BUT YOUR CHOICE IN WHO YOU LISTEN TO IS WHAT MATTERS......

This country. I really think unless there is a way to get all of us to see ourselves as Nigerians first before tribe, we will always be a weak nation. We are too divided and distrusting of each other. I am beginning to think we need to divide the country into different sister states with each president or PM on a Federal overseeing parliament. That parliament can be constructed for checks and balances. Or we just stay small countries.

All this ethnic nonsense will undetermine progress. The banking strength was something of great encouragement to me and finally beginning to show us in a progressive light and now these divisive people. I pray God their plans do not prosper.

I might really need to reconsider the timetable on relocation or immense asset building in that country as this direction might seriously affect the growing middle class and strong markets.

But on a positive note, now that their plans are exposed they will not be able to hid behind any flock of economic advancement. Bringing things to light also makes it lose its power. God is still with that country.

See comments in red. If these guys are not ready to work for the common man make them give way cause I am ready.

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God first, family second and career third.
www.marykay.com/adanna

This had better not be true.

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Celebrate Africa, the continent of beauty!

Girl, how can these people be thinking thru their anus for Christ sake I am so mad that some people are about to ruin the great progress that Nigeria has made in the banking sector.

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God first, family second and career third.
www.marykay.com/adanna

There is certainly no language of economics that would sneak this ethno-infested-proposal into a policy.For once,let Nigerians stop this Northern/southern favour bullcrapabeg,i dey check my papers with Zenith imediately

i said it before yaradua can not lead us out of the woods... you cant keep destroying and rebuilding there is bound to be defect. the sad thing is that where his expected to act he wont .... .....make dey just annul this guys election thats my prayer

__________________
SOMETIMES IT IS HARD TO SEE THE PLACE,GOD HAS CALLED YOU AS A PLACE OF BLESSING, BUT THATS WHEN YOU'VE GOT TO HOLD ON AND TRUST THE PROCESS
PEOPLE TEND TO DRAW OTHERS BACK FROM THINGS THEY SECRETLY WOULD HAVE LOVED TO DO BUT ARE NOT CAPABLE OR DARING ENOUGH TO DO
THEY WILL ALWAYS TALK BUT YOUR CHOICE IN WHO YOU LISTEN TO IS WHAT MATTERS......

nigeria if not now...i believe will some day divide.....

__________________
SOMETIMES IT IS HARD TO SEE THE PLACE,GOD HAS CALLED YOU AS A PLACE OF BLESSING, BUT THATS WHEN YOU'VE GOT TO HOLD ON AND TRUST THE PROCESS
PEOPLE TEND TO DRAW OTHERS BACK FROM THINGS THEY SECRETLY WOULD HAVE LOVED TO DO BUT ARE NOT CAPABLE OR DARING ENOUGH TO DO
THEY WILL ALWAYS TALK BUT YOUR CHOICE IN WHO YOU LISTEN TO IS WHAT MATTERS......

Let us divide. I am all for it. Others may disagree but I think we are too different as people to co-exist. I have travelled some and being a keen observer I have noticed that there is nothing that divides or unites as a spoken language. Being in an international community as an expate it is more charing.

People just bond together simply by language and no matter what you do or how you behave you are an outsider to them. They might be friendly and accomodating but you are always out.

Unless history and life is to be avoided or ignored, I can only conclude that our different languages and in some cases even cultures are too strong a bond for there to be unity across the board. There will always be a group that feels disenfranchised. Can you imagine a country where a person can not see themselves even building a house in another state because it is not their state? Imagine me in Texas or CA comprehending not being able to build in New York? Or in London not comprehending building in Newcastle. Under one nation!!

I am just beginning to understand that but at first I couldn't. Nigeria is so unique in that we are not one. I can't get up and say because I have lived in kaduna for 30years, love the area and people and have ideas on development, I can run for an elected office. Simply because I am not from there. So unless you are in Lagos, Abuja or your state forget about building a long term business and even in Lagos or Abuja, a southerner can not run for governor and yet those are the most multi-cultural cities!!

The other time I was reading on obasanjo commissioning a railroad or something and I couldn't help wondering why the rail line didn't also reach to the south. Oil is in PortHarcourt, Tourism in calabar/AkwaIbom and huge markets in Igbo areas and yet the rails don't cover those areas. Always between Yoruba and the Northern areas. Why??

Look at Nollywood, we have to have Yoruba, Hausa, igbo segments. It's understandable but not within the context of one nation. That is why Africa is struggling. We need to go back to small sister states. I think eventually someone will bring this up in Africa and we'll have to seriously consider it.

Even the most "exposed and educated" see tribe first. I spoke to a lady who is very well read - Nigerian - and was lamenting the lack of development in a small area in my state and she says - "Did you expect the past regime to build that area when they are not from there?" And she meant it as a statement of fact and as though it was okay. This is an educated, abroad living woman!! That was an eye opener to how deep this whole tribe thing is.

Lets divide and there will be trust. We can have trade agreements and military agreements with one another. But one nation?? I don't believe it can stand solid in the long term.

Yup Nigeria needs to divide into four countries and it is then you will see what is development ....Biafra go their way ...Niger Delta go their way,Omo Yoruba go thiar way and Aboki-Hausa go their way ....... it will be the best thing to happen to West Africa !!

Then there will be competition and a race to development !!


@ Tribalism runs rampant even on NR ooooh ...they have even toned it down ...there was a time folks were speaking only yoruba on this website ...to the point Ghanaians started getting frustrated and began speaking Twi etc !!!