As a crucial meeting between the the governor of Central Bank of Nigeria, Sanusi Lamido, and CEOs of the nation’s banks is ongoing, industry sources have disclosed to NEXT that the sack of CEOs and management staff of five major Nigerian banks is the “CBN now acting in its full capacity”.
“What has happened is that these banks have not kept to the stipulations of corporate governance. There is no bank that is not exposed, but these sacks are likely about gross marginal exposure, to just a few corporate entities and individuals,” disclosed one of our sources, a top executive with a new-generation bank.
Another disclosed that police officers are currently on the premises of headquarters of all five banks affected, showing the hard-line stance that the CBN has adopted over reviving the sector; “continued failure of regulation and risk management of the nation’s financial institutions and the effects on banks is at the front-burner of this meeting, which is why no representatives have been allowed.”
It was also revealed that CEO of Bank PHB, Francis Atuche, was one of several executives who hurriedly booked flights in and outside of the country to attend the meeting.
Advising shareholders not to panic, the bank official said that the Central Bank of Nigeria’s motives were well-intended.
“These bankers have most likely been sacked because the government plans to re-inject funds into the banks, and to do so, they will have to oversee its management until the bank is on its feet again. It could have been worse, had the mismanagement been allowed to snowball into the beginnings of a financial crisis quite like that seen in the West.”
He added that this situation was not an industry first. “You will recall that Wema bank had management and shareholders’ funds misappropriation issues and the CBN stepped in, put it in receivership temporarily until it stabilised. Why there is an uproar is the calibre of people, and top-tier banks involved. Sadly, anyone sacked will never work in a financial institution; that is the law.”
Confirming that calls had been made by concerned bankers and shareholders across the nation’s 23 banks on the need for the CBN to clarify the situation, our source said: “until the CBN makes a categorical and detailed statements explaining its actions and the consequences to the Nigerian public, developments like this can in no way help the stock market. I cannot confirm the actual values right now but shareholder value is decreasing even as we speak.”
Reader Comments (58)
post a comment
* = Required information