Nigeria: 14 Nigerian Banks to Enjoy $7bn Reserve

Sep 17, 2018 | Vanguard; All Africa

The Chairman of the Special Presidential Panel for Recovery of Public Property, Mr. Okoi Obono-Obla, recently, (Sept. 7th 2018), noted in a NAN report in Abuja, that the Agency is continuing its investigations to "recover monies that have been taken away from the people of Nigeria."

One of such 'loot', according to the Chairman is the "almost $7bn bailout fund that the Central Bank of Nigeria (CBN) granted 14 commercial banks between 2006-2008. Obono-Obla also confirmed that "after 13 years, these banks have not returned the money to government's treasury." Curiously, however, according to Obono-Obla "when we enquired from CBN, the state of that money, the banks told us that the money was 'dashed' to them." It is not clear, why the Presidential Panel made its inquiry to CBN, but instead got a response from the banks; nevertheless, Obono-Obla rightly reiterated, that the $7bn, belonged to "Nigerians and so could not be given away, for free to commercial banks, owned by private individuals." Indeed, in exchange for their bloated bad debts, which were often poorly collateralized, over N5tn was also eased into the banking sector to bailout distressed banks in 2009. Notably, however, there has been no evidence of any refund whatsoever, of the $7bn, which CBN Governor, Soludo seemingly 'dashed' 14 banks after they raised the mandatory N25bn capital base in 2006; ironically, nonetheless, government has since borrowed trillions of Naira, and paid double-digit interest rates to the same banks with whom CBN had placed $7bn 'Awoof' Credit. The above title was first published in October 2006, after, former CBN Governor, Soludo, embarked on a bizarre escapade, which is, arguably, a scam of Nigeria's Treasury. A summary of that article follows hereafter. Please read on. "The report that 14 Nigerian banks were appointed as Asset Managers of Nigeria's reserves was published in The Guardian Newspaper of October 5th, 2006. CBN Spokesperson, Festus Odoko, also confirmed that "already, $7bn deposit representing, part of CBN's present share of foreign reserves, estimated at about $38bn, had been released to bankers." "Consequently, CBN made good its promise to invite Nigerian banks, with a consolidated $500m capital base to a "foreign reserves banquet", if they provided evidence of collaborative agreements with credible international financial houses. However, it is not clear whether or not the M.O.U. between the 14 Nigerian banks and their respective International affiliates, involves the adoption of global best banking practice and ethical standards with, collateral responsibility for financial integrity, or if the expected collaboration, is simply a glorified correspondence relationship. Read more on All Africa. Source: All Africa