The CBN Recapitalisation Deadline
Sometime last year, Central Bank of Nigeria (CBN) gave a deadline on updating of bank accounts details. I wondered why the deadline was necessary. Why the need for a deadline to update one’s bank account details when it is certainly the responsibility of banks to regularly update bank account details. This is how it is done in developed countries; despite the deadline not all customers have updated their details and in fact the
update is a continuous process as it ought to be. So why did Sanusi put a tight deadline that led to customers queuing for days, and many not reporting to work?
Again, the CBN governor has placed September 2011 as deadline on recapitalisation of rescued banks otherwise he would nationalise the banks. Certainly there is something about the new posture of the CBN and I begin to wonder and ask myself a few questions:
• Is the CBN governor so powerful that he cannot be checked by law?
• Is there nobody overseeing his operations?
• Why would the CBN consider the Christian Association of Nigeria (CAN) position to Islamic banking as stupid and rather than engaging CAN, the CBN governor asked them to go to court?
• So when Sanusi nationalises the banks how will the proceeds from the banks be shared to all Nigerians? I know that one of the hottest debate in the UK is how to ensure that all residents of the UK get shares from the Royal Bank of Scotland which was nationalised with tax payers’ money and as such profits need to be shared to every citizen. Is this what will happen if the banks are nationalised?
While trying to answer these questions, I realised that people behave differently due to several enculturating agents, so whilst I expect Sanusi to engage with the stakeholders in trying to solve their problems, Sanusi may have had his own experiences which require that deadlines are given and penalty is met out for not complying.
I would like to remind the CBN governor that, in dealing with any issue, one needs to talk to the people, as they know where it pinches most and can help to quickly and effectively tackle the problem.
I would like to remind CBN governor that the days of dictatorship style of leadership is long gone, he needs to think about the effect of his actions and inactions. Nigerians do not want to lose sleep for what is not necessary. There is no reason why the CBN cannot allow the banks to recapitalise in phases and if possible guide them back to health. Everywhere in the world, regulation has shifted from "they" and "us" to "US". Regulators now play supporting role while maintaining significant integrity so as to sanction when necessary. Sanusi will lose his credibility if he continues to force his way to everything.
Finally, I would also like to use the opportunity to call on the NASS and President Goodluck Jonathan to review the CBN law and to possibly include clauses that make the CBN answerable to either the Presidency before taking any actions on matters that bother on national interest.
Lewis
Comments
Have you ever thought about adding a bit bit far more than just your thoughts? I mean, what you say is essential and every little thing. But its got no punch, no pop! Perhaps should you added a pic or two, a video? You could have such a far more potent blog in the event you let people SEE what youre talking about rather than just reading it.
Posted by: advanced ecdl modules | August 25, 2011 12:01 AM
How could I have missed this blog! Its extraordinary. Your design is flawless, like you know precisely what to do to do make men and women flock to your page! I also like the perspective you brought to this subject. Its like you might have an insight that many people havent seen prior to. So wonderful to read a weblog like this.
Posted by: nvq courses online | August 25, 2011 04:34 AM
Can I just say what a relief to locate somebody who in fact knows what theyre talking about on the web. You undoubtedly know how to bring an problem to light and make it crucial. Much more people should read this and understand this side of the story. I cant believe youre not much more well-known simply because you undoubtedly have the gift.
Posted by: insurance redundancy | September 13, 2011 05:34 AM