Tuesday, 18 August 2009

5 Nigerian Banks: Bosses get the Sack!

What a disaster, these 5 Nigerian Banks most of which were giants in the Nigerian Financial sector now brought to their knees in just space of time.

Most people in the west would not be aware of these banks existence, but they are another result of the current global economic recession now at hand. They are namely, Oceanic Bank, Union Bank, Finbank,Intercontinental Bank and Afribank. The bosses of these banks have been sacked by the Central Bank of Nigeria and 19 Top Executives are wanted for questioning regarding "bad loans" which led ultimately to the hundreds of billion of Naira ($2.6 billion) bail-out.

It can be argued that sacking these bosses seems quite drastic if not draconian, some-one even said if I can remember rightly that the Central Bank of Nigeria Governor has been too high handed and should not have taken this action as it has now caused panic amongst the banks clients. Britain and USA were cited as examples of countries that did not sack their bank bosses.

Maybe the argument should be that the Western government should take a leaf from the Governor of the Central Bank of Nigeria who has had the guts to get rid of the arm of "Untouchable Bankers" who think they can hold the economy of a nation in their hands and use it as a pun on their corrupt playing field.

The hope is that their injection of cash into the banks will help to free the flow of liquid cash into the system and that the panic will die down. A lot of work still needs to be done. But it seems that Nigeria's Central Bank has started cleaning house for the countries financial sector and the Naira may finally start finding its feet in the worlds economy

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