Of CBN’s Unremitted $49.8billion and the Banking Reform – Lanre Shadiya

Published:28 Jan, 2014

Among the current crop of government officials in Nigeria, Sanusi Lamido Sanusi, the Central Bank Governor ranks evidently in the top league of those highly respected for diligence, knowledge and professionalism. Since the commencement of his term as the CBN governor in 2009 he has contributed immensely to the nation’s monetary policies for which he has won numerous local and international laurels and accolades. This is not really a surprise looking at his experience in the banking industry. Friends and acquaintances that have had the opportunity of working with him directly or indirectly have always said a lot about the wealth of experience that he carries. Some have even referred to him as a banking genius. Personally, I believe, strongly, that the outgoing CBN governor has given a good account of himself in the five years that he has spent at the apex bank and he will be remembered for a whole lot of achievements.

There are four things that happened during Sanusi’s tenure which will not be forgotten in a hurry in Nigeria; the banking reform, the cashless policy, the aborted introduction of the N5,000 note and lastly, his $49.8billion unremitted crude oil revenue letter to Mr. President. The banking reform was the whirlwind that blew across the banking and financial industry with the objective of increasing the confidence in the banks and financial institutions and also create a decent industry with little or no room for personalization of public funds. The cashless policy mandated the reduction in the physical movement of huge cash sums for business transactions. The failed introduction of the N5000 billed, amongst other things, was aimed at making life easy during the transfer of high volume of physical cash. However, this was seen, in some quarters, as a sharp contrast to the cashless policy of the bank. The $49.8billion letter needs no introduction; it is still making waves like the beaches in Hawaii.

The banking reform which commenced in 2009 was perhaps the most far reaching for the common Nigerian of all of the four stated above. This is because it affected every strata of the nation as never seen before. Having noticed a huge gap between the financial statuses of most Nigerian banks against their financial claims, Sanusi embarked on a sanitizing mission to build a robust industry where transparency and professionalism will be the guiding principle. Although, this mission was perceived and also celebrated as a step in the right direction, it also contributed to varying setbacks for numerous Nigerians. Shareholders saw the value of their shares plummet outrageously to almost nothing. This, reportedly, caused some deaths. A significant number of employees in some of the affected banks were laid off including, in some instances, a whole bank branch. Some of these employees were not paid any severance payment despite the numerous years of service that they have offered their services to these institutions. Today, almost five years after, some of them are yet to secure any employment. The reform also contributed to slow economic activities in the country as the debt hole said to be created by the affected banks had to be filled by funds from the government – funds that could have been used to develop other sectors and make life more bearable for Nigerians.

During the banking reform, and even till date, the position, analysis and actions of the CBN headed by Sanusi continued to generate intense debates even within the banking industry. Numerous counter analysis were presented by analysts of great reputes on how the reform should be conducted and why the approached taken by Sanusi was not the best. As a nation, we accepted the reform as the best and we moved on.

Since the revelation of the error in Sanusi’s $49.8billion letter, I have continued to ask myself numerous questions that I believe we should be asking as a nation. But for the joint review done by the NNPC, Ministry of Petroleum and Ministry of Finance and the CBN governor and announced on December 18, 2013, we would all have continued to believe that indeed $49.8billion realized from crude oil sale has not found its way into the purse of the federal government. With all respect, I believe that the case of the unremitted $49.8billion was simply a case of wrong calculation but not wrong intentions. Considering the abundance of resources at the disposal of the CBN to compute figures of national impact, it can reasonably be concluded that all the apparatus at the disposal of the CBN governor to ensure the efficacy of data and figures used in the collation of figures available to the CBN failed. It will be responsible to assume that all the information and figures used in the computation must have been respectively checked and confirmed by the different relevant departments and directorates in the CBN before it was brought to the CBN governor as the unquestionable truth on the highhandedness of the NNPC. Regrettably, we realized on December 18, 2014 that not all that comes out of the CBN is true. Has it then occurred to anyone, that given this huge difference in reality and the picture painted by Sanusi’s CBN on the unremitted revenue, a similar error could have been made before the implementation of the banking reform? I am sure that torrents of counter opinions may trail this write up, but before you crucify my thoughts please ask yourself if you ever thought that the CBN as a whole, through the governor, will ever send a report to the president containing data with a bloated error of up to 450%?

I believe there is a need to critically review the information for the decision-making in the days leading to the banking reform. If anything, this will ensure that we eradicate the lurking doubts in the minds of a few of us. It will allay our worries regarding the possibility of an error as enormous as the $49.8billion unremitted crude oil revenue claims of the CBN. Let me make it clear that I am not advocating for any bank to be returned to its previous owners. I firmly believe that any executive of any bank, organization or establishment found wanting on his or her job should face the appropriate sanctions.  Recanting the arguments of some of the antagonists of the reform and going by the information surrounding the $49.8billion claim, one will see that there are similar occurrences which are too obvious to ignore; the CBN arrived at the $49.8billion independently just as it did in the calculation of deficit of the “failed banks”. CBN did not present its figures to the appropriate department/ministries for confirmation just as it did not request an explanation from the boards of the ‘failed banks”. The CBN advised the Presidency through Sanusi’s letter of 24th September of the colossal revenue loss from NNPC, the same way it advised it on the need to embark on the reform based on the monumental financial imbalance of the banks.

This is not a call for the review of all decisions made and actions taken by the CBN under the governorship of Sanusi Lamido Sanusi. It is simply a call to confirm that we have built our new banking industry on a robust foundation devoid of innocent mistakes and positively initiated but bogus claims.

Lanre Shadiya

@lanreshadiya

The views expressed above are solely that of the writer and not necessarily that of Omojuwa.com or its associates.

  • Don

    In the same way that the truth came out for the unremitted cash, the bank CEOs would have been able to prove the cbn wrong by now.

Related Posts

Recent Posts

Turkey, Scotland Allows Policewomen To Wear Hijabs

Turkey has for the first time allowed policewomen to wear headscarves while on duty as part of their uniform.   Women serving in the police force “will be able to cover their heads” under their caps or berets so long as the headscarf is “the same colour as the uniform and without pattern”, said the ruling published in the government’s Official Gazette on Saturday.   It came into force immediately.   The ruling Justice and Development Party (AKP) has long pressed for the removal of...

Dilemma of the Nigerian Youth, By Gimba Kakanda

These past weeks, I've had reason to reflect more on the place of the Nigerian youth in politics and public service. The inspiration for this was the hypocrisy I witnessed all the times our gerontocratic political establishment opened its door for the young join to them. The strangest dilemma is this: the youth advocate inclusion in governance and participation in politics yet any time a young person...

Security: Governor Bello Advises Citizens To Be Vigilant.

Kogi State Governor, Alhaji Yahaya Bello, has called on the people of the state to be vigilant and security conscious by checking movement of strange persons in their neighbourhood  and report suspicious individuals to security agents. The Governor stated this today in Lokoja at the Jumat Mosque Prayers  to mark the 25th Anniversary of the creation of the state. Bello disclosed that some people have recruited some miscreants and imported...

Governor Ganduje Reaffirms Commitment To Completion Of Ongoing Projects.

Kano State government has reaffirmed its commitment to ensure successful completion of the ongoing road projects within the period stipulated.   The State Commissioner Ministry of Land and Physical Planning Dr. Farouk Bibi Farouk gave the assurance while inspecting the ongoing road construction works at Lamido and Kingsgarden - Kwanar Tudun Wada road in Nassarawa Local Government Area.   Dr. Farouk disclosed that the administration of Dr. Abdullahi Umar Ganduje awarded the construction of 11...

Write Your Will Before Travelling For Hajj – Abuja Islamic Cleric Tells Pilgrims

An Abuja-based Islamic scholar, Sheikh Yahya Al-Yolawi, has advised intending pilgrims to settle their debts and leave their wills behind before travelling to Saudi Arabia. Al-yolawi, who is the Chief Imam of Area 10 Mosque, made the call while delivering Jumma’at sermon title:“ Essential tips for Hajj Preparations“ on Friday in Abuja. “An intending pilgrim should settle his debts and leave behind him a clear record as well as writing all his wills or what...

My Life Flashed Before My Eyes – Virgin Airline Owner, Richard Branson Almost Killed in Crash Horror

Multi-billionaire business tycoon and owner of Virgin Airline, Richard Branson, has narrated his near-death experience on a training cycle run with his two grown up children when disaster struck which nearly took his life. Read below; A couple of nights ago I went cycling on Virgin Gorda with Holly and Sam as part of my training for the Virgin Strive Challenge. I was heading down a hill...

50 Cent Talks “Power”, Sex Scene, The Game and More On Big Boy Tv

50 Cent is currently on a media campaign in support of his hit show Power, and recently stopped by Big Boy TV to catch up with his fans. Curtis spoke on the development of his character on the show, his recent sex scene, settling differences with The Game, Starz Vs. Netflix, only flying coach once in his life, and more. Watch below and expect DJ Whoo Kid and G-Unit’s Lost...

Watch Jidenna Perform “Little Bit More” On Jimmy Kimmel Live

Jidenna continues to work on his Long Live The Chief album, and after blessing fans with a video for his single “Little Bit More” last month, he stopped by to perform the song on last night’s airing of Jimmy Kimmel Live! Watch Jidenna light up the stage below and check out his  “Chief Don’t Run”visuals if you haven’t already.

Japan Warns On Measles After Infected Fan Joins Bieber Concert

Japanese authorities have warned of a possible measles outbreak after a fan who went to a Justin Bieber concert near Tokyo was diagnosed with the contagious disease, officials said Friday. A 19-year-old man had a fever of more than 39 degrees Celsius (102 degrees Fahrenheit) and a rash over his body after returning from Indonesia earlier this month, the Disease Control and Prevention Center (DCC) and local media have said. Despite the condition, the man,...

Nigeria’s D’Tigers Now 16th In Latest FIBA World Ranking

Nigeria's men basketball team, D'Tigers have moved 9 places to rank 16th (with 106.2 points) in the 2016 FIBA World Ranking released on Thursday. The African champions outshone their arch rivals, Angola to lift the Nations Cup for the first time last year which earned the country an automatic qualification to the Rio 2016 Olympic Games. The performance of teams at the just concluded Games also led to drastic changes...

Buhari Lacks Political Will To Rescue Chibokgirls – BBOG

The #BringBackOurGirls (BBOG) movement, yesterday, took a swipe at President Muhammadu Buhari for lacking the political will to rescue 218 Chibok girls. BBOG said as opposed to the President’s excuse that he lacked “credible intelligence” to rescue the girls, what he actually required was the political will to take decisive action in the present circumstance. The group stated this in an address jointly signed by its leaders, Oby Ezekwesili and Aisha Yesufu, which was read...

EFCC Doesn’t Torture Suspects- Magu

 the first time in 13 years, the Economic and Financial Crimes Commission (EFCC), yesterday opened the doors of its interrogation rooms and its cells to reporters to inspect. Chairman of the anti-graft agency Ibrahim Magu said the Commission does not torture suspects because it is investigating non-violence crimes. He added that the anti-graft agency had always put the interest of the country above any other consideration. Magu, who personally conducted reporters round the EFCC cells...

Artist Buries Dress Inside the Dead Sea for 3 Months… See Amazing Transformation That Happened

An artist buried a dress right inside the red sea for as many as three months and brought it out again only to see a totally different thing. In 2014, Israeli artist Sigalit Landau submerged a 19th century-style gown into the lifeless waters of the Dead Sea, for a unique photo project. The dress was retrieved after three months, and as you can see in the photos below, the transformation is quite significant.

NLC Wants Ghost Workers’ Perpetrators Prosecuted

The Akwa Ibom chapter of Nigeria Labour Congress (NLC) has called for the prosecution of all perpetrators of ghost workers syndrome in the nation’s public service. Chairman of the council in the state, Mr Etim Ukpong, made the call in Uyo on Friday in an interview with the News Agency of Nigeria (NAN). Ukpong decried that over the years, different tiers of government had complained of ghost workers but that no perpetrator of the act had been identified or...

#Rio2016: Senate Probes Dalung, Others

Less than one week after the end of the 2016 Rio Olympics in Brazil, where Nigeria won only a Bronze Medal in male soccer game, the Senate has revealed plans to probe the roles of the of Minister of Sports, Solomon Dalung and the Nigeria Olympics Committee (NOC), over the poor performance of the country’s contingent to the global event. Chairman of the Senate Committee on Sports, Senator Joe Obinna Ogba made the disclosure during an interview with...

Lagos To Wait For Crude Export To Get 13% Derivation

In spite of the commencement of production from its newly discovered oil wells, Lagos State may have to wait until crude oil export commences before it joins the league of states benefitting from the 13 per cent derivation principle. This clarification was made yesterday at Federation Account Allocation Committee (FAAC) meeting. This emerged just as allocation available for sharing by three tiers of government for the month of July dipped by N115.369 billion to N443.663 billion as against June’s allocation of...

EFCC Arrests Man Over $145,000 Love Scam

The Economic and Financial Crimes Commission, EFCC, on Tuesday, said it arrested Iwuchukwu Uche for obtaining money under false pretence to the tune of USD145, 000. Mr. Uche, who said he was a military officer working for the North Atlantic Treaty Organization, NATO, in Kabul, Afghanistan, allegedly collected the money from his victim, H. Uyen, a Vietnamese woman, after promising to marry her. The suspect, who also claimed to be a property agent operating in...

Minister Beaten To Death By Miners

Bolivian miners on Thursday during a clash with the police in the town of Panduro hacked the Deputy Interior Minister to death. Interior Minister, Carlos Romero, confirmed on Friday that reports by witnesses indicated that the 55-year-old was beaten to death following clashes between police and miners in the town of Panduro, 165 kilometres south-east of La Paz. Romero said Illanes had been kidnapped by miners after attempting to initiate talks with them at a roadblock....

20 Shipping Firms Leave Nigeria Over Low Business

Groaning under intense hardship imposed by poor government policies and global economic crunch, over 20 shipping firms have exited the nation’s shores. This is coming as Dockworkers Union of Nigeria (DUN) lamented that over 3,000 workers have already been laid off by various shipping companies, terminal operators and logistic companies, owing to lack of financing and poor import policies of the Federal Government. The workers also blamed the massive retrenchment on the inability of the...

Again, Herdsmen Invade Enugu Community, Kill Catholic Seminarian

Suspected Fulani herdsmen in the early hours of on Thursday invaded the sleepy Ndiagu Attakwu Akegbe-Ugwu community in Nkanu West Local Government Area of Enugu State, killing a Catholic seminarian, Lazarus Okafor, and injuring four others, including a pregnant woman. The suspected herders were said to have invaded the Ogbodo Nwarum family compound in the community at about 2 a.m. and wreaked havoc on the entire household. While the seminarian had severe machete cuts which led...

Majek Fashek, The Rainmaker, Returns With New Single

Reggae star, Majek Fashek, is in the news again. This time, the musician’s numerous fans, especially in Nigeria, are excited that he has finally released the product of his much-publicised collabo with equally gifted singer, Tuface Idibia. The single, which is available on the Internet, is a remix of Majek’s wave-making song titled, No more sorrow from his 1991 album, Spirit of love. Many music fans of the older generation are, no doubt, familiar with the...