The appointment of Nigeria CBN Governor & His scripted discharging Duty Dilemma.
Contrary to international Communities ‘expectation and opinion of appointing at least Core North radical knowledgeable Economic/Finance University Professor to saddle with the sensitive and complex nature of CBN think tank job, the Nigeria President Musa Yar’dua has instead appointed an IBB crony/point man, a renowned UBA/First Banker, a feudal Hegemony icon & Fulani Aristocrat, better referred to, as Risk/Crisis Manager, otherwise regarded as Risk/Crisis initiator or programmer, whom the World assumed that does not posses the type of vast knowledge based academic think tank Reservoir, technical/tactical micro or macro Economic Strategy and well grounded in Brentwood Strategy and finance World bank/IMF Policy fellowship with the required intra world Tactics and intrigues of positioning sensitive CBN policy & coordinate Nigeria in line or in par with the US driven complex Brentwood strategy.
Now, the modern CBN job includes articulation/formulation of styled US modern Brentwood Economics/Finance, composition of various short/long term Analysis with clinical Policy Guidance and the lubrication of Policy association with the World Bank/IMF, as either as contractual World bank Policy Academic contributor or Brentwood Scholar.
The sources had it that CBN and NDIC recent Nigeria banking books auditing exercise, were technically to have some discrepancies of bank unauthorized encroachment and not large scale case, if compared to the bank volume of bank Asset/Reserve, as bank abuse is being expected, as far as banks are institutions peopled by humans not Angels and cannot exist without one fault or the other.
The CBN Governor using a distress sanction, instead of using in house of CBN regulatory cautioning, oversight regulatory correction and possibly advising these erring banks, have made the world to look at Nigeria with caution.
The CBN distress tactics by sacking the affected Banks’ MDs with entire Board with a fiat action has portrayed danger for Nigeria Economy. This CBN action has already erased the needed bank trust, confidence and has created bank panics, which have rubbished whatever good intention CBN Gov had and have cause irreparable long economic damage for Nigeria with multiple economic effects, which Nigerians are going to witness in 6 months time. As goods and services being consumed or to be consumed from now to next 6months, are not to be properly replaced, due to the bank created fears/panic and unnecessary bank caution on credit rules which stiff credit facility, which lead all the Nigeria banks to have rigid regulations on lending/borrowing and tighten credit facility on those who run to bank to any form of assistance. Discouraging or impeding the smooth running of businesses, imports, exports and industries, will definitely impede production and provision of goods and services.
By now, no further job creation, is to be witnessed, as slow pace of activities in businesses, imports, exports and industries, scale down employment, while the affected banks and unaffected banks will scale down numbers of their bank Staff, as a strategy to survive and to stay profitable. Also, as Nigeria banks are sizable big, with extension ownerships in various Micro finance institutions, Mortgage, Stock Brokerage firms, in Partnership with large scale Firm as well as investors to many corporation and firm, their affected problems shall definitely be affected, more than the expected.
The Core North Cabal/feudal Power Hegemony who could know tactically that they have overplayed their Agenda of controlling the banks, have overheated the economic system and the consequences have backfired above their imagination and scope. The Dynamism and advance economic and structural transformations of Nigeria , were not known to Hegemony and Nigerians, as any hidden Agenda tactics always boomerang with dire consequences that affected all, including those Power Hegemony who virtually control the economy of Nigeria .
The irony is that the IBB cronies who are the new made Billionaires, who took the unsecured loans without required bank Sureties or bank loan requirements, were granted such loans under a powerful pressure and lobby from Minna or Abuja, which made the cowed bank MDs to grant the loans and this, have made the affected bank MDs as escape goats and to look foolish, as they cannot explain such unprofessional act, despite their acquired academic and bank experience/knowledge. The behind scene acts to led to bad loans, is same setting, who is behind CBN Governor’s action, make a good case for thinkers, as all will definitely lead us into a big play or scam of foul bank ownerships or bank settlement but the World have understood Nigeria and have carefully follow this banks’ saga with caution and expected analysis, to avoid any maneuver.
Presumably, since Nigeria is practicing US patterned Democracy, we opt to emulate their Senate/Rep.(Congress) Public hearing on any national matter before accepting any sanction or proposal, as this, will enable the affected bank MDs to have chance of defending themselves and to let Public why they handle loan issues and the new CBN appointed MDs to showcase themselves on technicalities on they intend to revive the affected banks.
Despite the controversy between House and CBN on how to inject funds into the affected, there is much micro, macro, economic national matrix and industrial index, which CBN have to resolved, unlike western Nations that create economic wealth. Nigeria unlike those productive and economic Nations, can only create wealth or inject CBN create wealth or increase the volume of currency circulation, by ways and means of our liquidation of External Reserve or by foreign loans or through bilateral arrangement on the increase Oil exportation, since Nigeria don’t have required technical higher industrial index, productive index, no technology production, weak exports only depending on Oil one commodity transaction and massive importation of almost needed goods and services. Any injection of fund on literally CBN created, based on only constitution, will weigh down the value of Naira, as the only economic tool of ease out the injected or created funds. CBN should carry out exhaustive consultation with the World Bank and other international Creditors for appropriate Advice before Nigeria will commit such economic suicide.
...to be contd..
Mazi Onigbo Maduabuchim