The removal of the Managing Directors and Directors of five banks by the Central Bank of Nigeria, given the undisputed fact that they depleted their shareholders funds and were illiquid as a result of their recklessness and unprofessional practices, cannot in my view be faulted. I support the CBN in the step it has taken to restore the confidence of the banking public in that sector.
The only criticism that can be sustained is that it is wrong for the apex bank not to have taken over the banks completely.The CBN should not have injected N 400 Billion of taxpayers’ money into the illiquid banks without holding corresponding equities in the banks. Those who manage public quoted companies must be held accountable for the way and manner they use shareholders’ funds. The CBN should hold equities in the banks and also ensure that any of the sacked directors who engaged in any unprofessional, illegal or improper act is made to face the music by prompt prosecution. Many of those banks had the worst labour practices imaginable. One of them was so emboldened to cut staff salaries for their inability to meet irresponsibly set deposit targets. The CBN must boldly deal with the immoral and illegal targets that have turned many of our young bank workers into dignified and not too dignified prostitutes. I expect more heads to roll in the banking sector. For too long we have seen bankers who contested for front pages of our newspapers with Nollywood stars. Enough is enough.
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