Until then, he can, as a matter of fact, do something about the current situation in the upper legislative house, where rumours of budget padding and dubious awards to senators have cast a shadow on the integrity of the lawmakers. If the government is truly interested in fighting corruption, it can do no better right now than to act on the many cases of corruption dotting the landscape, including those affecting and relating to those within the inner circle of government. This would send the right and correct signals that Nigeria is ready for positive change and a new approach to public life rather than following the usual ineffective and tawdry public assertions that mean nothing in reality.”
Read also:Increase in minimum capital requirements for Nigerian banks
The Central Bank of Nigeria used to boast of an excellent research department with a world-class library. The King’s College Old Boys Association [KCOBA] would not take matters for granted. Here is a list of books that are to be delivered to the Governor of the Central Bank, Mr. Yemi Cardoso, and the Deputy Governor, Mr. Phillip Ekeazor (who are both old boys of St. Gregory’s College, Lagos):
(i) “Curse of Cash” by Kenneth S. Rogoff (Harvard University)
(ii) “The Origin and Prevention of Major Wars” by Professor Robert Rothberg (Harvard University)
(iii) “The Bottom Billion” by Professor Paul Collier (Oxford University)
(iv) “What Terrorists Want: Understanding the Enemy, Containing the Threat” by Professor Louise Richardson (Oxford University)
(v) “The Elite Africa Project” by Professor Peter Lewis (Johns Hopkins University)
(vi) “WONDER DRUG” (7 Scientifically Proven Ways That Serving Others Is The Best Medicine for Yourself) by Stephen Trzeciak, M.D., and Anthony Mazzarelli, M.D.
(vii) “THE ROAD TO FREEDOM, ECONOMICS, AND THE GOOD SOCIETY” by Joseph E. Stiglitz (winner of the Nobel Prize) Professor at Harvard, Yale, Emerson College, University of California, Berkeley.
From the archives, we have the following vignettes:
(i) When the British Bank For West Africa
(now known as First Bank of Nigeria Plc)
was formed in 1894 among its founding
shareholders were Dr. J.K. Randle. The
inaugural meeting was held at the Colony
Hotel in London.
(ii) When the British Bank of West Africa launched a branch in Kano in 1929, Alhassan Dantata (Aliko Dangote’s grandfather) opened an account by depositing twenty camel-loads of silver coins.
(iii) “The Chairman of EFCC [Economic and Financial Crimes Commission] has announced that the embattled former Governor of Kogi State, Yahaya Bello withdrew funds from the government treasury and obtained U.S.$720,000 from a Bureau de Change to pay for his children’s school fees in advance at American International School, Abuja”
Read also: Increase in minimum capital requirements for Nigerian banks Part 1
“Business Day” newspaper of May 8, 2024
Headline: “CHIKE-OBI CAUTIONS AGAINST POOR EXECUTION
AMID BANKS’ RECAPITALISATION”
Mustapha Chike-Obi, chairman of the Bank Directors’ Association of Nigeria, lauded the Central Bank’s latest bank recapitalisation policy on Friday but warned that poor execution could scuttle the gains.
Chike-Obi spoke at a roundtable assessing the bank recapitalisation policy organised by BusinessDay Media Limited in Lagos. He noted the 2004/2005 recapitalisation exercise was a good policy but was poorly implemented due to governance issues.
On March 28, the CBN announced new capital requirements for Nigerian lenders, from commercial to merchant banks. The last such exercise was in 2004/2005, two decades ago.
During the recapitalisation of 2004/2005, a surge in liquidity occurred without adequate investment opportunities, leading to an asset bubble and subsequently the dismissal of several bank chiefs.
“A good policy that brings bad results means execution was problematic along the way. We are seeing bad results from good policies, and nobody is taking responsibility for that. We should celebrate the policy and the results,” he said.
Speaking further, he said, “I encourage more engagement from the CBN, it’s better if they talk to the banks about why retained earnings are not considered at this point in time.
I think there should have been better engagement; some things need to be explained. Why does an international licence require more capital than a national licence? If you’re diversifying across nations, does that mean more risk? If I have one branch in London as Fidelity, am I in the same boat as a UBA who has many branches in many countries?” Chike-Obi (Chairman of Fidelity Bank Plc) said.
The CBN said all international banks should move their capital to a minimum of N500 billion; national banks up to a minimum of N200 billion; regional banks (N50 billion); merchant banks (N50 billion); and N20 billion for non-interest banks operating nationally and N10 billion for those operating regionally.
In his keynote address, Ike Chioke, Group Managing Director of Afrinvest (West Africa) Limited, noted that “after the announcement of the last recapitalisation we had 89 banks operating with N311 billion in total capital, which was equivalent to $2.4 billion at the time.
We ended up by December 31, 2005, with 25 commercial banks, each with a minimum capital of N932.0 billion.
