A coalition of civil society organisations yesterday expressed worry over an alleged move by some vested interests within the banking system to orchestrate a diversionary campaign to stop the recapitalisation programme in the sector.
They urged the Federal Government, Central Bank of Nigeria (CBN), the Economic and Financial Crimes Commission (EFCC), the Department of State Services (DSS), and the Bankers Committee to disregard campaigns against the planned banking sector reforms.
The groups, which comprise the Constitutional Rights Advocate Initiative, Cadrell Advocacy Center, Movement for Nigeria Restructuring, Center for Social and Economic Rights, Committee for the Protection of People’s Mandates, CACOL, and Commonwealth Institute of Advanced & Professional Studies, disclosed this in Lagos.
Specifically, Past Chairman, ICAN Lagos, Alesta Wilcox noted that the goal of the campaign is to either delay or force the CBN to drop the ongoing reforms of the banking sector, so as to elongate the stay of their loyalists at the helm of affairs at some of the banks that require recapitalization most.
“We have credible intelligence that they intend to make some unsubstantiated allegations against the CBN Governor, Olayemi Cardoso, Finance Minister and Coordinating Minister for the Economy, Mr. Olawale Edun, and some investors in the banking sector,” he said.
“It is germane to say that some of the banks that require recapitalization most are the very ones in need of the injection of capital off the back of the recapitalization programme. But these vested interests would rather leave the banks in their sick state, so as to prevent the truth from being unearthed. Recapitalization programmes, as you well know, require forensic audits of the loan books. This is what they do not want.
“In the case of one of the banks, the ages of some of the Non-Performing Loans (NPLs) will shock the Nigerian public. They date back to the 1970s, with interest capitalised running into decades. But thankfully, there has been a successful sale of the debt to a company, as it is done worldwide. This has received a ‘No Objection’ verdict from AMCON and approved by the CBN.
“But the vested interests do not want fresh capital injected into the bank. Why? They will lose their ravenous positions to new executives who will be appointed by the investors. If indeed they care about the interest of the bank in question, why don’t they want new capital injected to save the bank? It is like the parent of an anaemic child rejecting blood donation, even when the doctors have certified the blood to be clean.
“One of the critical pillars upon which the economic reforms agenda of the Federal government is anchored is the proposed banking sector reforms. Nigeria cannot afford another banking sector crisis. It will throw more Nigerians into the unemployment market. This is why we are raising this alarm. They have secured the services of some faceless civil society and some online media to advance this gaslighting campaign.”
