GOVERNOR of Central Bank of Nigeria (CBN), Mallam Lamido Sanusi, has vowed that fraudulent directors of banks operating in Nigeria will go to jail. Sanusi said this after he was presented with an award in the United States of America by Euromoney Institutional Investor Plc as an outstanding Central Bank Governor in sub-Sahara Africa in the Emerging Market.
The move is designed to sanitise the Nigerian banking industry of corrupt practices and encourage inflow of foreign direct investment (FDI) into the Nigerian economy.
Former Chief Executive Officer of Oceanic Bank International Plc, Dr (Mrs) Cecilia Ibru, sacked by the CBN last year after an indictment by the joint audit report of the apex bank and the Nigeria Deposit Insurance Corporation (NDIC), was sentenced to six months imprisonment on Friday by a federal high court in Lagos.
In the ruling of the court, she forfeited assets worth N191 billion after pleading guilty to a three-count charge of misappropriation of depositors’ fund.
Sanusi disclosed on Saturday in Washington DC, that the CBN had enough evidence to jail fraudulent bank directors that mismanaged depositors fund. According to him, “I know what I saw in the report of weak banks investigated by our auditors from the first day and have no doubt these people would go to jail. I have no doubt that everybody we are trying will go to jail.”
Sanusi explained that the sanitisation of the banking industry was not about individuals as the CBN continued with the legal process but was designed to ensure the safety of depositors’ fund.
He said: “A year ago, when we removed Mrs Ibru, the story was that it was not possible and that it would not last. When we started the trial, the story was that in Nigeria, it is not possible to jail a CEO.
The time that people who were rich and were connected would go free when they committed offence is now a thing of the past.”
Sanusi vowed that if any of the directors of banks in Nigeria should commit any offence, they will pay the price for it, no matter the level of connection and political influence. “For the fact that Mrs Ibru today is convicted is a big lesson for the elite, the rich and the powerful people in Nigeria. It is not perfect, it is not ideal but maybe I would have wanted more but in the circumstance, the Justice Ministry has done very well and the minister must be commended for holding firm on the trial,” he said.
“I think it is a good thing for the country. It has shown that the way people think, that maybe because somebody is my friend or from one part of the country, will make them go free if they are caught, will no longer happen,” he added.
Meanwhile, the International Monetary Fund (IMF) has announced that Nigeria is the third fastest growing economy in the world after China and India, as a result of the growth of the nation’s economy from 6.9 per cent in 2009 to 7.4 per cent this year.
The Minister of Finance, Dr Olusegun Aganga, who described this rating by IMF as a good development at a time when the economies of the developed countries were contracting, said with new policies being initiated by the Federal Government, the economy would witness a turnaround in a very short time.
“What we need in Nigeria is continuity in policies and leadership to sustain the growth,” he advocated.
Speaking at a joint press conference with Sanusi at the World Bank/IMF meetings in Washington DC, Aganga said the economic prospect was bright because despite the fact that Nigeria was yet to take advantage of opportunities and resources available within the country, it achieved 7.4 per cent growth and 48 per cent increase in revenue in the first half of the year.
Among the advantages he identified were existence of 33 untapped solid minerals, steady increase in the oil revenue and 75 million telecommunic-ations subscribers.
“If we have continuity in policy, a lot will be done in the economy and we will do more as shown with the increase in oil revenue by 46 per cent during the first six months of 2010,” he said.
However, Dr Aganga said “the Federal Government requires N100 billion to finance infrastructure development for the next four years in order to add two per cent to the gross domestic product (GDP) of Nigeria.”
He made reference to the state of the manufacturing sector, where operators put 40 per cent of cost on power generation, saying, if infrastructure in Lagos and other places were upgraded, there would be a major relief across the country.
“This could be our decade. I am more excited about the country today than few years back,” Aganga said.
The finance minister, who also is the chairman of World Bank 2010 annual meeting, confirmed his push for Africa to emerge as the president of World Bank and Managing Director of the IMF.
“Of course and it is clear that since 1946, the president of the World Bank has always been from America and the MD of IMF is always from Europe . We are all in agreement that it should change. The appointment to leadership positions should be open to all members, transparent and based on merit going forward. That is part of the reform.”
He added that he had been making the case to increase the quota of the constituency in Africa.
“Whatever we come out with, it is better that we protect the quota of low-income countries in Africa and small medium countries. That is important because it determines the aids to get and the voice in policy issues,” he assured.
Meanwhile, the CBN has raised concerns over the rate Nigeria’s foreign reserves is depleting, saying that plans are underway to slow the pace of spending from the reserves to defend the naira.
Sanusi told newsmen at the sidelines of the IMF and World Bank meeting, at the weekend, adding that the apex bank must make sure the Federal Government did not have access to “easy money” to continue its deficit spending habits.
A series of factors that had been driving the CBN to draw down its forex reserves in defense of the naira were winding down, as the bank reported that its forex reserves were down by 15 per cent from a year earlier at about $34.57 billion, including a seven percent decline in the last few weeks.
“I think we’ll see less spending, but I think the naira will remain stable,” Sanusi said.
The naira slid to a 13-month low in September amid strong local demand for the United States dollar by gasoline and rice importers.
Sanusi said the current exchange rate was not a level that needed to be maintained “at all costs,” adding that “in the short to medium term, we do believe we can maintain this range.”
It will be recalled that the CBN surprised analysts and investors, last month, by raising its benchmark interest rate by a quarter of a percentage point to 6.25 per cent.
Showing posts with label SANUSI LAMIDO. Show all posts
Showing posts with label SANUSI LAMIDO. Show all posts
Monday, 11 October 2010
More bank directors ’ll be jailed –Sanusi •Nigeria is world’s 3rd fastest growing economy – IMF
GOVERNOR of Central Bank of Nigeria (CBN), Mallam Lamido Sanusi, has vowed that fraudulent directors of banks operating in Nigeria will go to jail. Sanusi said this after he was presented with an award in the United States of America by Euromoney Institutional Investor Plc as an outstanding Central Bank Governor in sub-Sahara Africa in the Emerging Market.
The move is designed to sanitise the Nigerian banking industry of corrupt practices and encourage inflow of foreign direct investment (FDI) into the Nigerian economy.
Former Chief Executive Officer of Oceanic Bank International Plc, Dr (Mrs) Cecilia Ibru, sacked by the CBN last year after an indictment by the joint audit report of the apex bank and the Nigeria Deposit Insurance Corporation (NDIC), was sentenced to six months imprisonment on Friday by a federal high court in Lagos.
In the ruling of the court, she forfeited assets worth N191 billion after pleading guilty to a three-count charge of misappropriation of depositors’ fund.
Sanusi disclosed on Saturday in Washington DC, that the CBN had enough evidence to jail fraudulent bank directors that mismanaged depositors fund. According to him, “I know what I saw in the report of weak banks investigated by our auditors from the first day and have no doubt these people would go to jail. I have no doubt that everybody we are trying will go to jail.”
Sanusi explained that the sanitisation of the banking industry was not about individuals as the CBN continued with the legal process but was designed to ensure the safety of depositors’ fund.
He said: “A year ago, when we removed Mrs Ibru, the story was that it was not possible and that it would not last. When we started the trial, the story was that in Nigeria, it is not possible to jail a CEO.
The time that people who were rich and were connected would go free when they committed offence is now a thing of the past.”
Sanusi vowed that if any of the directors of banks in Nigeria should commit any offence, they will pay the price for it, no matter the level of connection and political influence. “For the fact that Mrs Ibru today is convicted is a big lesson for the elite, the rich and the powerful people in Nigeria. It is not perfect, it is not ideal but maybe I would have wanted more but in the circumstance, the Justice Ministry has done very well and the minister must be commended for holding firm on the trial,” he said.
“I think it is a good thing for the country. It has shown that the way people think, that maybe because somebody is my friend or from one part of the country, will make them go free if they are caught, will no longer happen,” he added.
Meanwhile, the International Monetary Fund (IMF) has announced that Nigeria is the third fastest growing economy in the world after China and India, as a result of the growth of the nation’s economy from 6.9 per cent in 2009 to 7.4 per cent this year.
The Minister of Finance, Dr Olusegun Aganga, who described this rating by IMF as a good development at a time when the economies of the developed countries were contracting, said with new policies being initiated by the Federal Government, the economy would witness a turnaround in a very short time.
“What we need in Nigeria is continuity in policies and leadership to sustain the growth,” he advocated.
Speaking at a joint press conference with Sanusi at the World Bank/IMF meetings in Washington DC, Aganga said the economic prospect was bright because despite the fact that Nigeria was yet to take advantage of opportunities and resources available within the country, it achieved 7.4 per cent growth and 48 per cent increase in revenue in the first half of the year.
Among the advantages he identified were existence of 33 untapped solid minerals, steady increase in the oil revenue and 75 million telecommunic-ations subscribers.
“If we have continuity in policy, a lot will be done in the economy and we will do more as shown with the increase in oil revenue by 46 per cent during the first six months of 2010,” he said.
However, Dr Aganga said “the Federal Government requires N100 billion to finance infrastructure development for the next four years in order to add two per cent to the gross domestic product (GDP) of Nigeria.”
He made reference to the state of the manufacturing sector, where operators put 40 per cent of cost on power generation, saying, if infrastructure in Lagos and other places were upgraded, there would be a major relief across the country.
“This could be our decade. I am more excited about the country today than few years back,” Aganga said.
The finance minister, who also is the chairman of World Bank 2010 annual meeting, confirmed his push for Africa to emerge as the president of World Bank and Managing Director of the IMF.
“Of course and it is clear that since 1946, the president of the World Bank has always been from America and the MD of IMF is always from Europe . We are all in agreement that it should change. The appointment to leadership positions should be open to all members, transparent and based on merit going forward. That is part of the reform.”
He added that he had been making the case to increase the quota of the constituency in Africa.
“Whatever we come out with, it is better that we protect the quota of low-income countries in Africa and small medium countries. That is important because it determines the aids to get and the voice in policy issues,” he assured.
Meanwhile, the CBN has raised concerns over the rate Nigeria’s foreign reserves is depleting, saying that plans are underway to slow the pace of spending from the reserves to defend the naira.
Sanusi told newsmen at the sidelines of the IMF and World Bank meeting, at the weekend, adding that the apex bank must make sure the Federal Government did not have access to “easy money” to continue its deficit spending habits.
A series of factors that had been driving the CBN to draw down its forex reserves in defense of the naira were winding down, as the bank reported that its forex reserves were down by 15 per cent from a year earlier at about $34.57 billion, including a seven percent decline in the last few weeks.
“I think we’ll see less spending, but I think the naira will remain stable,” Sanusi said.
The naira slid to a 13-month low in September amid strong local demand for the United States dollar by gasoline and rice importers.
Sanusi said the current exchange rate was not a level that needed to be maintained “at all costs,” adding that “in the short to medium term, we do believe we can maintain this range.”
It will be recalled that the CBN surprised analysts and investors, last month, by raising its benchmark interest rate by a quarter of a percentage point to 6.25 per cent.
The move is designed to sanitise the Nigerian banking industry of corrupt practices and encourage inflow of foreign direct investment (FDI) into the Nigerian economy.
Former Chief Executive Officer of Oceanic Bank International Plc, Dr (Mrs) Cecilia Ibru, sacked by the CBN last year after an indictment by the joint audit report of the apex bank and the Nigeria Deposit Insurance Corporation (NDIC), was sentenced to six months imprisonment on Friday by a federal high court in Lagos.
In the ruling of the court, she forfeited assets worth N191 billion after pleading guilty to a three-count charge of misappropriation of depositors’ fund.
Sanusi disclosed on Saturday in Washington DC, that the CBN had enough evidence to jail fraudulent bank directors that mismanaged depositors fund. According to him, “I know what I saw in the report of weak banks investigated by our auditors from the first day and have no doubt these people would go to jail. I have no doubt that everybody we are trying will go to jail.”
Sanusi explained that the sanitisation of the banking industry was not about individuals as the CBN continued with the legal process but was designed to ensure the safety of depositors’ fund.
He said: “A year ago, when we removed Mrs Ibru, the story was that it was not possible and that it would not last. When we started the trial, the story was that in Nigeria, it is not possible to jail a CEO.
The time that people who were rich and were connected would go free when they committed offence is now a thing of the past.”
Sanusi vowed that if any of the directors of banks in Nigeria should commit any offence, they will pay the price for it, no matter the level of connection and political influence. “For the fact that Mrs Ibru today is convicted is a big lesson for the elite, the rich and the powerful people in Nigeria. It is not perfect, it is not ideal but maybe I would have wanted more but in the circumstance, the Justice Ministry has done very well and the minister must be commended for holding firm on the trial,” he said.
“I think it is a good thing for the country. It has shown that the way people think, that maybe because somebody is my friend or from one part of the country, will make them go free if they are caught, will no longer happen,” he added.
Meanwhile, the International Monetary Fund (IMF) has announced that Nigeria is the third fastest growing economy in the world after China and India, as a result of the growth of the nation’s economy from 6.9 per cent in 2009 to 7.4 per cent this year.
The Minister of Finance, Dr Olusegun Aganga, who described this rating by IMF as a good development at a time when the economies of the developed countries were contracting, said with new policies being initiated by the Federal Government, the economy would witness a turnaround in a very short time.
“What we need in Nigeria is continuity in policies and leadership to sustain the growth,” he advocated.
Speaking at a joint press conference with Sanusi at the World Bank/IMF meetings in Washington DC, Aganga said the economic prospect was bright because despite the fact that Nigeria was yet to take advantage of opportunities and resources available within the country, it achieved 7.4 per cent growth and 48 per cent increase in revenue in the first half of the year.
Among the advantages he identified were existence of 33 untapped solid minerals, steady increase in the oil revenue and 75 million telecommunic-ations subscribers.
“If we have continuity in policy, a lot will be done in the economy and we will do more as shown with the increase in oil revenue by 46 per cent during the first six months of 2010,” he said.
However, Dr Aganga said “the Federal Government requires N100 billion to finance infrastructure development for the next four years in order to add two per cent to the gross domestic product (GDP) of Nigeria.”
He made reference to the state of the manufacturing sector, where operators put 40 per cent of cost on power generation, saying, if infrastructure in Lagos and other places were upgraded, there would be a major relief across the country.
“This could be our decade. I am more excited about the country today than few years back,” Aganga said.
The finance minister, who also is the chairman of World Bank 2010 annual meeting, confirmed his push for Africa to emerge as the president of World Bank and Managing Director of the IMF.
“Of course and it is clear that since 1946, the president of the World Bank has always been from America and the MD of IMF is always from Europe . We are all in agreement that it should change. The appointment to leadership positions should be open to all members, transparent and based on merit going forward. That is part of the reform.”
He added that he had been making the case to increase the quota of the constituency in Africa.
“Whatever we come out with, it is better that we protect the quota of low-income countries in Africa and small medium countries. That is important because it determines the aids to get and the voice in policy issues,” he assured.
Meanwhile, the CBN has raised concerns over the rate Nigeria’s foreign reserves is depleting, saying that plans are underway to slow the pace of spending from the reserves to defend the naira.
Sanusi told newsmen at the sidelines of the IMF and World Bank meeting, at the weekend, adding that the apex bank must make sure the Federal Government did not have access to “easy money” to continue its deficit spending habits.
A series of factors that had been driving the CBN to draw down its forex reserves in defense of the naira were winding down, as the bank reported that its forex reserves were down by 15 per cent from a year earlier at about $34.57 billion, including a seven percent decline in the last few weeks.
“I think we’ll see less spending, but I think the naira will remain stable,” Sanusi said.
The naira slid to a 13-month low in September amid strong local demand for the United States dollar by gasoline and rice importers.
Sanusi said the current exchange rate was not a level that needed to be maintained “at all costs,” adding that “in the short to medium term, we do believe we can maintain this range.”
It will be recalled that the CBN surprised analysts and investors, last month, by raising its benchmark interest rate by a quarter of a percentage point to 6.25 per cent.
Friday, 17 September 2010
Power Sector to Get N400bn from Pensions Fund •CBN rejects bids for some rescued banks •MPC to tackle inflation, rising expenditure
The Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, said yesterday that about N400 billion from Pension Funds will be deployed in the power projects to encourage investment in that sector.
He also said some bids for the rescued banks may be rejected.
Sanusi was quoted by Bloomberg as saying at a conference in London that the role of the apex bank would be to “provide the comfort and the guarantees to allow the release of the money to viable and eligible power projects.”
President Goodluck Jonathan had last month announced a plan to end the Federal Government monopoly of the power sector and expand electricity generation through private investment.
The government proposed to sell 11 distribution units of Power Holding Company of Nigeria and allow private companies to build gas-fired, coal-fuelled and hydroelectric plants.
It also plans to increase output to 14,019 megawatts by 2013.
Sanusi told Bloomberg that out of about N2 trillion of pension funds in the country, the CBN is working with the Pensions Commission “to see how we can unlock about N400 billion of that into power infrastructure.”
The Finance Minister, Mr Olusegun Aganga, had said that the country could achieve an annual growth rate of 10 per cent if the government improves its power and transport capacity.
Nigeria achieved growth of 7.4 per cent in the first half of the year, compared with 5.9 per cent in the same period last year, the Bloomberg report quoted Sanusi to have said further.
The CBN Governor pointed out that the apex bank is targeting an inflation rate of less than 10 per cent.
The National Bureau of Statistics (NBS) changed the CPI basket last month, reducing the weighting of food to 50.7 per cent from 63.7 per cent.
Prior to the re-weighting, inflation was at 10.3 per cent.
“Last month’s reduction of the weighting of food in the inflation basket may help the bank achieve that goal by reducing the impact of rising costs on the overall inflation rate. For cosmetic reasons, it is extremely important to make sure that we attack inflation.
“Reducing the weight given to food actually improves the efficacy of monetary policy in checking inflation so we should be able to target single digit and basically address that through adjustments in monetary variables,” Sanusi said.
The CBN Governor also told Reuters that the CBN had received good bids for some of the rescued banks but he needed to protect shareholder value “and not every bid would be accepted.”
He said: "We would like to complete deals as soon as possible but we need to protect shareholder value. Many people are of the opinion that these banks are there for the taking and they can get them for nothing. Some of the bids are very good, some of them are acceptable given where we stand. Given that we have AMCON and they can recapitalise the banks, we can get a better deal, so we don't have to accept every offer."
On what to expect at the meeting of the Monetary Policy Committee (MPC) scheduled for next week in Abuja, the apex bank chief said: “The discussions at MPC next week will be on the relative balance of inflation and expenditure.”
The governor said the country must fashion out strategies to “attack” inflation, which he noted reached an annual 13 per cent in July after a re-weighting of the consumer price index.
Sanusi disclosed that bank lending has not been growing as expected while the upside risk to inflation is very high.
He said that higher government spending, with elections due next January, and the establishment of the Asset Management Company (AMCON) to soak up bad bank loans should help put more money into the system, meaning the inflation risk was not zero.
"(The risk) is there with an election year and with money likely to come in with the asset management corporation," he said.
He also said some bids for the rescued banks may be rejected.
Sanusi was quoted by Bloomberg as saying at a conference in London that the role of the apex bank would be to “provide the comfort and the guarantees to allow the release of the money to viable and eligible power projects.”
President Goodluck Jonathan had last month announced a plan to end the Federal Government monopoly of the power sector and expand electricity generation through private investment.
The government proposed to sell 11 distribution units of Power Holding Company of Nigeria and allow private companies to build gas-fired, coal-fuelled and hydroelectric plants.
It also plans to increase output to 14,019 megawatts by 2013.
Sanusi told Bloomberg that out of about N2 trillion of pension funds in the country, the CBN is working with the Pensions Commission “to see how we can unlock about N400 billion of that into power infrastructure.”
The Finance Minister, Mr Olusegun Aganga, had said that the country could achieve an annual growth rate of 10 per cent if the government improves its power and transport capacity.
Nigeria achieved growth of 7.4 per cent in the first half of the year, compared with 5.9 per cent in the same period last year, the Bloomberg report quoted Sanusi to have said further.
The CBN Governor pointed out that the apex bank is targeting an inflation rate of less than 10 per cent.
The National Bureau of Statistics (NBS) changed the CPI basket last month, reducing the weighting of food to 50.7 per cent from 63.7 per cent.
Prior to the re-weighting, inflation was at 10.3 per cent.
“Last month’s reduction of the weighting of food in the inflation basket may help the bank achieve that goal by reducing the impact of rising costs on the overall inflation rate. For cosmetic reasons, it is extremely important to make sure that we attack inflation.
“Reducing the weight given to food actually improves the efficacy of monetary policy in checking inflation so we should be able to target single digit and basically address that through adjustments in monetary variables,” Sanusi said.
The CBN Governor also told Reuters that the CBN had received good bids for some of the rescued banks but he needed to protect shareholder value “and not every bid would be accepted.”
He said: "We would like to complete deals as soon as possible but we need to protect shareholder value. Many people are of the opinion that these banks are there for the taking and they can get them for nothing. Some of the bids are very good, some of them are acceptable given where we stand. Given that we have AMCON and they can recapitalise the banks, we can get a better deal, so we don't have to accept every offer."
On what to expect at the meeting of the Monetary Policy Committee (MPC) scheduled for next week in Abuja, the apex bank chief said: “The discussions at MPC next week will be on the relative balance of inflation and expenditure.”
The governor said the country must fashion out strategies to “attack” inflation, which he noted reached an annual 13 per cent in July after a re-weighting of the consumer price index.
Sanusi disclosed that bank lending has not been growing as expected while the upside risk to inflation is very high.
He said that higher government spending, with elections due next January, and the establishment of the Asset Management Company (AMCON) to soak up bad bank loans should help put more money into the system, meaning the inflation risk was not zero.
"(The risk) is there with an election year and with money likely to come in with the asset management corporation," he said.
Wednesday, 4 August 2010
Akingbola Returns, May Report to EFCC Today
Former Vice-Chairman and Chief Executive Officer of Intercontinental Bank Plc, Dr. Erastus Akingbola, made a surprise return to the country yesterday and is said to be ready to challenge allegations levelled against him by the Central Bank of Nigeria (CBN). Akingbola, who has been in the United Kingdom since the CBN removed him and other bank CEOs last year, arrived Abuja in the morning. He was received by close family members as well as his lawyer, Chief Felix Fagbohungbe (SAN).
"Akingbola's voluntary return to the country is to defend himself of all allegations against him in the law courts. His return shows that he is not afraid to face trial in proper courts of law. He is presently consulting with his legal team and the outcome of these consultations would determine his next steps," a family source said last night, hinting that Akingbola may report to the office of the Economic and Financial Crimes Commission (EFCC) today. Akingbola "emphatically denies all allegations of wrong-doing or improper conduct", the source added, disclosing that the former CEO has challenged the legal validity of his removal from office as Group Chief Executive of the Intercontinental Bank Plc by way of Judicial Review.
On August 14, last year, the CBN governor, Mallam Sanusi Lamido Sanusi, had sacked the senior management teams of five banks - Afribank, Finbank, Intercontinental Bank, Oceanic Bank and Union Bank - and injected N420 billion, saying lax governance had left them dangerously undercapitalised. Akingbola has challenged the legal validity of his removal, maintaining that he was the target of the CBN action. Akingbola and Sanusi had reportedly had some disagreements over de-marketing when Sanusi was the CEO of First Bank of Nigeria Plc. The former Intercontinental Bank boss had alleged that First Bank was de-marketing Intercontinental Bank and even placed an advertorial to that effect in some newspapers but did not mention First Bank or the name of its CEO.
The advert referred to "one of the old generation banks whose CEO had an ambition to become the Governor of the CBN". De-marketing is a term used to describe competitors trying to pull down one another. Akingbola left the country shortly before his removal and EFCC filed charges against him and other directors of the bank. The directors were arraigned by the EFCC on a total of 131-count charge bordering on fraud, concealment and granting loans without adequate collateral running into about N700 billion.
They were alleged to have committed offences contrary to and punishable under Sections Section 20(b) (7), 28 (1,2, and 3), 24 and 50 of the Banks and Other Financial Institutions Act (BOFIA) Cap B3, Laws of the Federation, 2004; Section 422 of the Criminal Code Act, Cap C38 Laws of the Federation, 2004. In a statement earlier this year, Akingbola's counsel, Mr. Charles Nwajagu, had indicated that Akingbola was ready to come back to Nigeria as soon as the suit in London would have been given mention in court, saying that the suit required his personal attention.
The case, mentioned in London court on July 14, 2010, was adjourned till December, 2010. According to the counsel, all the transactions conducted under Akingbola's stewardship were legitimate and lawful and that he never wrongly took or misappropriated any funds whatsoever. He said if there were any allegations against Akingbola, they should be left up to an impartial and fair court to decide, stressing that by resorting to trial in the court of public opinion through the media, his accusers are turning themselves into the complainant, the prosecutor and the judge.
"He would like to reassure Nigerians that he is and has always been prepared to come home, once he is sure of his personal safety and that of his family, and confident that no steps will be taken to attempt to implicate him in other crimes as a way of forcing him to withdraw his case in court against the CBN. "His whereabouts are known to the United Kingdom authorities. He is not now or ever been in hiding," said the counsel.
Thursday, 29 July 2010
Govt, banks seal N500b deal for real sector
A NEW vista was on Wednesday opened in efforts to revive Nigeria’s manufacturing sector as the Central Bank of Nigeria (CBN), Bank of Industry (BoI) and commercial banks in Nigeria put pen to paper to execute a N500 billion deal to fund the power and manufacturing sectors, thereby marking a remarkable departure from words to action.
The deal, which was supervised by Vice President Namadi Sambo at a ceremony at the Presidential Villa, aims to revolutionise funding for the real sector and breathe life into the ailing industries.
The fund is to be disbursed to beneficiaries at a concessionary interest rate of not more than seven per cent and with a tenor of 10 to 15 years. It covers lending and re-financing of projects, restructuring of existing portfolios to manufacturers and support for investment in industrial clusters’ power supply.
The deal was signed just as the Governor of the CBN, Mallam Sanusi Lamido Sanusi yesterday briefed the Federal Executive Council (FEC) on the performance of the Nigerian economy in the second quarter of 2010, with the Council urging the CBN “to realign economic policies to the financial reforms” as a way of encouraging “credit flow into the real and strategic sectors of the economy.”
Vice President Sambo who was obviously overwhelmed by what he termed as “the creative intervention” by the CBN team said: “The sector has suffered immensely from infrastructural problems and access to credit, especially the manufacturing sector suffered. The manufacturing sector is critical to our Vision 20:2020 and Millennium Development Goals (MDGs)targets.
“This realisation obviously influenced the CBN in its latest efforts. This is a creative initiative to revive and improve access to credit to SMEs and improve liquidity for the participating banks. It will also create employment.
“It is a reprieve for those borrowing as it would enhance the liquidity of the banks. Our banks need to drive the economy and meet global competitiveness. The money is in two components. One part is N200 billion for small and medium enterprises, and the manufacturing sector. Already, approval has been granted for over 60 per cent of the fund. The second component is for funding for the power sector.
“This intervention is coming when government is initiating several other efforts to revive several sectors of the economy. For the first time, a government in this country is coming up with a total package to address the problems of the economy. I wish to praise the CBN management for driving the process. I am glad that the banks have also bought into the scheme. I hope that the banks would match the efforts of government within the stipulated time.”
Speaking earlier, the Central Bank Governor, Sanusi Lamido Sanusi stressed that the growth of the economy was dependent on the growth and resilience of the real sector.
He said: “Things must change. We believe that the banking industry can be the catalyst for the sector. Every bank that has participated in the N130 billion we disbursed is to contribute its own share by at least N65 billion. Beyond providing finance, we are providing advice and impact assessment to aid the growth of the manufacturing sector.
“What we are doing now is a key mandate of the CBN which has over the years been relegated to the background. We will henceforth ensure that the developmental roles of the CBN would be refocused. It is a new era for all of us. Our target is economic growth, poverty alleviation and wealth creation.”
On her part, the Managing Director of BoI, Evelyn Oputa, described the occasion as historic while the Manufacturers Association of Nigeria (MAN) urged the banks to change their attitude and embrace lending to the real sector. President of MAN, Bashir Borodo praised the CBN’s efforts, saying it is “the way to go.”
At its meeting with Sanusi, the FEC approved January 1, 2012 as the effective date for convergence of accounting standards in Nigeria with International Financial Standards (IFRS). It urged the CBN to shield the newly established Assets Management Company of Nigeria (AMCON) from the sharp practices and financial engineering of the past that have plunged global and natural economies into avoidable crisis.
Sanusi’s report to the Council explained that the nation’s economy is “on sustainable growth, especially the non-oil sectors led by agriculture, retail trade, services and construction.”
He added: “There had been steady growth in GDP moderation in inflation. Inter-bank rates and other money market rates including lending also moderated. The foreign exchange market was substantially stable, while the recovery in the capital market continued. However, the growth in monetary and private sector credit aggregates remained sluggish.”
He regretted that Nigeria has “an economy in which you do not have power. If you don’t have electricity, you cannot attract investors. You cannot improve production. We don’t have power because the reforms that ought to have been carried out in four years have not been done. We keep talking and talking and talking and we have not yet created the right environment. I am saying that we have got to have a regulator (especially in the power sector). We have got to have good input for gas pricing. It will encourage investment. Deregulate electricity prices. This N7 is a myth because nobody can get power at that price. Ghana is paying N22. If we increase it to N22 and you increase gas prices, investments will come into power. We have not done that. That is the issue.
“We are spending N500 billion subsidies on petroleum products and nobody will invest in refineries if they believe that their business model is predicated on government subsidy. We are borrowing N500 billion on subsidies every year. We are borrowing money and we are leaving future generations to pay the debt. And the benefits of these subsidies are far outweighed by the long-term cost to the economy. So, the reality is that the government is not pursuing the right economic policies. And nothing in the banking reform will fix the economy unless you fix policy. And I say this as an adviser to the government.”
The Minister of Information and Communications, Prof Dora Akunyili told journalists at the end of the Council session that the body resolved that the CBN and the Economic Management Team should properly coordinate to ensure that the nation’s economic reforms are properly channeled towards the real sectors of the economy.
Said Maku: “Council appreciated the candour and depth of the CBN governors’ report on the economy especially his determination to press ahead with critical reforms in spite of pressures from vested groups to derail the reforms which have saved the nation’s financial sector from deep crisis. The need for deeper reforms in the energy, petroleum and power sectors was emphasized to realign economic policies to the financial reforms to encourage credit flow into the real and strategic sectors of the economy.”
Speaking on the January 1, 2012 effective date for convergence of accounting standards in Nigeria with International Financial Standards (IFRS), Akunyili, noted that “accounting standards are benchmarks for the preparation of financial statements by private and public institutions. Individual nations used to set their accounting standards until the widely reported financial scandals involving WorldCom and Enron in 2001.”
The Council approved the contract for the development of irrigation on 1,500 hectares of land and associated infrastructure, being Phase 1 of Tada-Shonga irrigation project located at Tada-Shonga in Kwara State. It is to cost a total of N3.26 billion.
The deal, which was supervised by Vice President Namadi Sambo at a ceremony at the Presidential Villa, aims to revolutionise funding for the real sector and breathe life into the ailing industries.
The fund is to be disbursed to beneficiaries at a concessionary interest rate of not more than seven per cent and with a tenor of 10 to 15 years. It covers lending and re-financing of projects, restructuring of existing portfolios to manufacturers and support for investment in industrial clusters’ power supply.
The deal was signed just as the Governor of the CBN, Mallam Sanusi Lamido Sanusi yesterday briefed the Federal Executive Council (FEC) on the performance of the Nigerian economy in the second quarter of 2010, with the Council urging the CBN “to realign economic policies to the financial reforms” as a way of encouraging “credit flow into the real and strategic sectors of the economy.”
Vice President Sambo who was obviously overwhelmed by what he termed as “the creative intervention” by the CBN team said: “The sector has suffered immensely from infrastructural problems and access to credit, especially the manufacturing sector suffered. The manufacturing sector is critical to our Vision 20:2020 and Millennium Development Goals (MDGs)targets.
“This realisation obviously influenced the CBN in its latest efforts. This is a creative initiative to revive and improve access to credit to SMEs and improve liquidity for the participating banks. It will also create employment.
“It is a reprieve for those borrowing as it would enhance the liquidity of the banks. Our banks need to drive the economy and meet global competitiveness. The money is in two components. One part is N200 billion for small and medium enterprises, and the manufacturing sector. Already, approval has been granted for over 60 per cent of the fund. The second component is for funding for the power sector.
“This intervention is coming when government is initiating several other efforts to revive several sectors of the economy. For the first time, a government in this country is coming up with a total package to address the problems of the economy. I wish to praise the CBN management for driving the process. I am glad that the banks have also bought into the scheme. I hope that the banks would match the efforts of government within the stipulated time.”
Speaking earlier, the Central Bank Governor, Sanusi Lamido Sanusi stressed that the growth of the economy was dependent on the growth and resilience of the real sector.
He said: “Things must change. We believe that the banking industry can be the catalyst for the sector. Every bank that has participated in the N130 billion we disbursed is to contribute its own share by at least N65 billion. Beyond providing finance, we are providing advice and impact assessment to aid the growth of the manufacturing sector.
“What we are doing now is a key mandate of the CBN which has over the years been relegated to the background. We will henceforth ensure that the developmental roles of the CBN would be refocused. It is a new era for all of us. Our target is economic growth, poverty alleviation and wealth creation.”
On her part, the Managing Director of BoI, Evelyn Oputa, described the occasion as historic while the Manufacturers Association of Nigeria (MAN) urged the banks to change their attitude and embrace lending to the real sector. President of MAN, Bashir Borodo praised the CBN’s efforts, saying it is “the way to go.”
At its meeting with Sanusi, the FEC approved January 1, 2012 as the effective date for convergence of accounting standards in Nigeria with International Financial Standards (IFRS). It urged the CBN to shield the newly established Assets Management Company of Nigeria (AMCON) from the sharp practices and financial engineering of the past that have plunged global and natural economies into avoidable crisis.
Sanusi’s report to the Council explained that the nation’s economy is “on sustainable growth, especially the non-oil sectors led by agriculture, retail trade, services and construction.”
He added: “There had been steady growth in GDP moderation in inflation. Inter-bank rates and other money market rates including lending also moderated. The foreign exchange market was substantially stable, while the recovery in the capital market continued. However, the growth in monetary and private sector credit aggregates remained sluggish.”
He regretted that Nigeria has “an economy in which you do not have power. If you don’t have electricity, you cannot attract investors. You cannot improve production. We don’t have power because the reforms that ought to have been carried out in four years have not been done. We keep talking and talking and talking and we have not yet created the right environment. I am saying that we have got to have a regulator (especially in the power sector). We have got to have good input for gas pricing. It will encourage investment. Deregulate electricity prices. This N7 is a myth because nobody can get power at that price. Ghana is paying N22. If we increase it to N22 and you increase gas prices, investments will come into power. We have not done that. That is the issue.
“We are spending N500 billion subsidies on petroleum products and nobody will invest in refineries if they believe that their business model is predicated on government subsidy. We are borrowing N500 billion on subsidies every year. We are borrowing money and we are leaving future generations to pay the debt. And the benefits of these subsidies are far outweighed by the long-term cost to the economy. So, the reality is that the government is not pursuing the right economic policies. And nothing in the banking reform will fix the economy unless you fix policy. And I say this as an adviser to the government.”
The Minister of Information and Communications, Prof Dora Akunyili told journalists at the end of the Council session that the body resolved that the CBN and the Economic Management Team should properly coordinate to ensure that the nation’s economic reforms are properly channeled towards the real sectors of the economy.
Said Maku: “Council appreciated the candour and depth of the CBN governors’ report on the economy especially his determination to press ahead with critical reforms in spite of pressures from vested groups to derail the reforms which have saved the nation’s financial sector from deep crisis. The need for deeper reforms in the energy, petroleum and power sectors was emphasized to realign economic policies to the financial reforms to encourage credit flow into the real and strategic sectors of the economy.”
Speaking on the January 1, 2012 effective date for convergence of accounting standards in Nigeria with International Financial Standards (IFRS), Akunyili, noted that “accounting standards are benchmarks for the preparation of financial statements by private and public institutions. Individual nations used to set their accounting standards until the widely reported financial scandals involving WorldCom and Enron in 2001.”
The Council approved the contract for the development of irrigation on 1,500 hectares of land and associated infrastructure, being Phase 1 of Tada-Shonga irrigation project located at Tada-Shonga in Kwara State. It is to cost a total of N3.26 billion.
Subscribe to:
Posts (Atom)