Shareholders charge FG to guide against banks takeover by regulator

Some shareholders in the banking sector have urged President Muhammadu Buhari to stop the Central Bank of Nigeria (CBN) from forcefully winding up some banks in the country.

The group, in a press statement issued in Lagos and signed by one Johnson Biboye, also urged the President to prevail on the CBN Governor, Godwin Emefiele to withdraw a letter addressed to 11 banks, including Skye Bank Plc compelling them to bring ‘insider related credits’ before December 31, describing it as anti-people’s policy.

This, they said would throw the country into economic instability should the apex bank be allowed to go ahead with its planned directive as the plan was nothing but to take-over the 11 banks.

The CBN had in a letter dated January 22 and signed by its Director of Banking Supervision, Benjamin Fakunle asked the banks to bring 10 per cent of their paid-up capital per director before December 31.

The letter reads: “The Central Bank of Nigeria has granted an extension of time till December 31, 20 I6 to enable you bring your insider related credits within the stipulated regulatory maximum of 10% of your Paid-up Capital per director including his/her related parties and 60% Paid-up Capital for total related credits in line with our circular BSD/9/2004 on Large Exposures and Connected Lending. You are however required to provide quarterly report/update on the progress made.”

Six months before the expiration of its directive, the CBN sacked Skye Bank management.
The group asked the President to remove the CBN Governor, Emefiele, describing his policy as anti-people.
The statement reads “Your Excellency, we are saddened as Nigerians that recent economic policies being released by the Central Bank Governor, (CBN), Mr. Godwin Emefiele, are not only anti-people, anti-economic development but also anti-progressive. It is very important to let you know of the ongoing harassment/intimidation of Chairmen of banks including their Managing Directors and Chief Executives.

“This, Your Excellency, should be aware, is a well-orchestrated plot by enemies of your government to use the Central Bank Governor, Mr. Godwin Emefiele, to systematically collapse the nation’s economy, so that global watchers could make mockery of your government and finally turn Nigeria to a laughing stock locally and internationally.”