How They Killed Nigeria's Banks
Economic Confidential, August 2010
2 Pages Posted: 3 Aug 2010
Date Written: August 2, 2010
The recent report by Standards and poor has generated a lot of controversies. While some commentators are saying such report should be discarded others are clamouring for its proper perusal and examination. Investors are beginning to panic over their investments. The question in the lips of Nigerians is that if S&P could foresee Nigeria dilemma, why did the big banks in the U.S. die? This rating to some extent may be true but it could largely be to an attempt for “hostile takeover” of our banks. How do you explain the regulatory laxity or lack of integration in regulatory framework within the financial sector? Unchecked governance malpractices at consolidation within the banks in Nigeria became a way of life with Chairman/CEO possessing unfetter powers over the bank. It was also discovered in the recent bank examination conducted that several abnormalities were done in the consolidation exercise. Accountants in public practice within financial sector no longer abide by the oath they sworn and the professional ethics of the accounting profession. There should be convergence of regulatory framework within the financial sector in Nigeria to protect investors. There is no protection for investors and consumers in Nigeria.
Keywords: Standards and Poor, Nigeria's Banks, Corporate Governance, Okubadejo Gbenga, Banking, Regulatory Failure, Consolidation
JEL Classification: G00, G20, G28, G29, G30, G32, G33, G34, G35, G36, G37, G38, G39
Suggested Citation: Suggested Citation