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Crisis In The Banking Sector

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Banking has many functions but the oldest of these functions is the provision of safe place for valuables. These valuables include customers’ money among others. Another function of banks is the lending of money to investors whose activities keep the economy of nations vibrant. But banks safeguard themselves by requiring borrowers to provide some kind of collateral security to cover the value of the loan being given out to borrowers. This is the standard practice anywhere in the world.
It is therefore surprising to note that five Megabanks in Nigeria gave out a loan amounting to 747 billion naira to investors without the usual collateral security. A behaviour such as this is a crime in banking practice. How could banks do this in their very economically strategic sector without considering the consequences of their action on the overall economic well-being of the nation. However, the five banks in question are the Afribank, Intercontinental Bank, Union Bank of Nigeria, Oceanic International Bank and Finbank.
According to the Governor of the Central Bank, Mr Sanusi Lamido Sanusi, the persistence and frequency or the demand of the five banks pointed to a deeper problem due to non-performing loans. He stressed that it was clear that the five banks did not have the ability to meet their obligations to depositors and creditors as they were in grave situation. A special examination of the banks was therefore carried out to ascertain their financial health. After the examination the Central Bank of Nigeria discovered that their sickness included, among others, high level of non­performing loans in the five banks which was attributed to poor corporate governance’ practice and non-adherence to the bank’s credit risk management practice. Because of this, the five banks were seen to be undercapitalized for their current level of operation. The Governor of the Central Bank of Nigeria Mr Sanusi therefore acting in accordance with the powers bestowed on him decided to remove the chief executive officers of the five banks in question because they kept the banks in grave situation and acted in a manner detrimental to the interest of their depositors and creditors.
The Central Bank appointed new chief executive officers to take charge of the affairs of the banks. They are Mr John Aboh, Oceanic International Bank, Mr Mahumud Alibi, Intercontinental Bank, Mr Nebolisa Arah, Afribank, Mrs Suzanne Iroche Finbank and Mrs Funke Osibodu Union Bank of Nigeria. In any case, realizing that changing management alone will not solve the problem the Central Bank injected a total of four hundred billion naira into the banks to cushion the effects of the alleged financial recklessness of their former chief executive officers who are now being arrested by the Economic and Financial Crime Commission.
Meanwhile, there had many reactions to the development In the banking sector. For instance, the chairman of the EFCC, Mrs Farida Waziri says it is a shock to her that any bank anywl1ere in the world will give such magnitude of money without any collateral. She emphasized that her commission would not relent in its efforts to recover the non­performing loans owed the five troubled banks. And according to a former Head of State General Muhammadu Buhari the problem is traceable to indiscipline in the banking sector. He urged the government to observe legal provision and be steadfast in its efforts to recover public funds in the banks.
However, as already noted, it is unthinkable for any bank anywhere in the world to give out loans amounting to billions of naira without collateral security to cover the loan. Any banker who is worth his or her salt ought to know that it is a standard practice to give loan under collateral security cover. We are therefore worried that these five banks could give out as much as 747 billion naira without collateral. Something serious must have gone wrong somewhere. The EFCC must therefore find out what went wrong. Nobody should steal money deposited in the banks. Stealing money deposited in the banks is a criminal offence. Therefore, all those found guilty of stealing money deposited in the banks should be given adequate punishment. It will be recalled that many banks were distressed in Nigeria in the 1990s. And many people who had money in these banks lost their life savings. Some of them died. We do not hope for this to repeat itself.
In a similar development, the managing directors of two microfinance banks have been arrested for squandering depositors money. The banks are Allmon Microfinance bank, Ijanikin, Lagos, and First call Micro Finance Bank. Maryland, Lagos. The managing directors of these banks Messrs David Ahmed and Ochuko Akpabiohikh did not set up their banks with the aim of doing a legal business but to dupe unsuspecting members of the public. According to the police by the time Ahmed was arrested he had collected 180 million naira from depositors while Akpabiohikh had garnered 300 million naira from the unsuspecting public. This is the type of thing people experience almost monthly in this country. Many people without good training and upbringing go about setting up spurious companies and banks through which they dupe the unsuspecting public. This should be condemned in its entirety. Nigeria should be made a safe place for decent law abiding citizens.
At this stage, we call on the police to carry out a thorough investigation into the activities of these wonder microfinance Banks operating in Lagos and duping innocent citizens. Those found guilty should also be given adequate punishment.
Tolofari is a Fellow, Institute of Corporate Administration of Nigeria, Abuja.

Dr Mann Tolofari

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Opinion

Restoring Order, Delivering Good Governance 

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Quote:”But the tide must now turn. With the Senate’s approval of a record ?1.485 trillion budget for Rivers State for 2025, a new opportunity has emerged”.

The political atmosphere in Rivers State has been anything but calm in 2025. Yet, a rare moment of unity was witnessed on Saturday, June 28, when Governor Siminalayi Fubara and Minister of the Federal Capital Territory, Chief Nyesom Wike, appeared side by side at the funeral of Elder Temple Omezurike Onuoha, Wike’s late uncle. What could have passed for a routine condolence visit evolved into a significant political statement—a symbolic show of reconciliation in a state bruised by deep political strife.

The funeral, attended by dignitaries from across the nation, was more than a moment of shared grief. It became the public reflection of a private peace accord reached earlier at the Presidential Villa in Abuja. There, President Bola Ahmed Tinubu brought together Governor Fubara, Minister Wike, the suspended Speaker of the Rivers State House of Assembly, Martin Amaewhule, and other lawmakers to chart a new path forward.

For Rivers people, that truce is a beacon of hope. But they are not content with photo opportunities and promises. What they demand now is the immediate lifting of the state of emergency declared in March 2025, and the unconditional reinstatement of Governor Fubara, Deputy Governor Dr. Ngozi Odu, and all suspended lawmakers. They insist on the restoration of their democratic mandate.

President Tinubu’s decision to suspend the entire structure of Rivers State’s elected leadership and appoint a sole administrator was a drastic response to a deepening political crisis. While it may have prevented a complete breakdown in governance, it also robbed the people of their voice. That silence must now end.

The administrator, retired naval chief Ibok-Ette Ibas, has managed a caretaker role. But Rivers State cannot thrive under unelected stewardship. Democracy must return—not partially, not symbolically, but fully. President Tinubu has to ensure that the people’s will, expressed through the ballot, is restored in word and deed.

Governor Fubara, who will complete his six-month suspension by September, was elected to serve the people of Rivers, not to be sidelined by political intrigues. His return should not be ceremonial. It should come with the full powers and authority vested in him by the constitution and the mandate of Rivers citizens.

The people’s frustration is understandable. At the heart of the political crisis was a power tussle between loyalists of Fubara and those of Wike. Institutions, particularly the State House of Assembly, became battlegrounds. Attempts were made to impeach Fubara. The situation deteriorated into a full-blown crisis, and governance was nearly brought to its knees.

But the tide must now turn. With the Senate’s approval of a record ?1.485 trillion budget for Rivers State for 2025, a new opportunity has emerged. This budget is not just a fiscal document—it is a blueprint for transformation, allocating ?1.077 trillion for capital projects alone. Yet, without the governor’s reinstatement, its execution remains in doubt.

It is Governor Fubara, and only him, who possesses the people’s mandate to execute this ambitious budget. It is time for him to return to duty with vigor, responsibility, and a renewed sense of urgency. The people expect delivery—on roads, hospitals, schools, and job creation.

Rivers civil servants, recovering from neglect and under appreciation, should also continue to be a top priority. Fubara should continue to ensure timely payment of salaries, address pension issues, and create a more effective, motivated public workforce. This is how governance becomes real in people’s lives.

The “Rivers First” mantra with which Fubara campaigned is now being tested. That slogan should become policy. It must inform every appointment, every contract, every budget decision, and every reform. It must reflect the needs and aspirations of the ordinary Rivers person—not political patrons or vested interests.

Beyond infrastructure and administration, political healing is essential. Governor Fubara and Minister Wike must go beyond temporary peace. They should actively unite their camps and followers to form one strong political family. The future of Rivers cannot be built on division.

Political appointments, both at the Federal and State levels, must reflect a spirit of fairness, tolerance, and inclusivity. The days of political vendettas and exclusive lists must end. Every ethnic group, every gender, and every generation must feel included in the new Rivers project.

Rivers is too diverse to be governed by one faction. Lasting peace can only be built on concessions, maturity, and equity. The people are watching to see if the peace deal will lead to deeper understanding or simply paper over cracks in an already fragile political arrangement.

Wike, now a national figure as Minister of the FCT, has a responsibility to rise above the local fray and support the development of Rivers State. His influence should bring federal attention and investment to the state, not political interference or division.

Likewise, Fubara should lead with restraint, humility, and a focus on service delivery. His return should not be marked by revenge or political purges but by inclusive leadership that welcomes even former adversaries into the process of rebuilding the state.

“The people are no longer interested in power struggles. They want light in their streets, drugs in their hospitals, teachers in their classrooms, and jobs for their children. The politics of ego and entitlement have to give way to governance with purpose.

The appearance of both leaders at the funeral was a glimpse of what unity could look like. That moment should now evolve into a movement-one that prioritizes Rivers State over every personal ambition. Let it be the beginning of true reconciliation and progress.

As September draws near, the Federal government should act decisively to end the state of emergency and reinstate all suspended officials. Rivers State must return to constitutional order and normal democratic processes. This is the minimum requirement of good governance.

The crisis in Rivers has dragged on for too long. The truce is a step forward, but much more is needed. Reinstating Governor Fubara, implementing the ?1.485 trillion budget, and uniting political factions are now the urgent tasks ahead. Rivers people have suffered enough. It is time to restore leadership, rebuild trust, and finally put Rivers first.

By: Amieyeofori Ibim
Amieyeofori Ibim is former Editor of The Tide Newspapers, political analyst and public affairs commentator

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Opinion

Checking Herdsmen Rampage

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Quote:”
Do the Fulani herdsmen have an expansionists agenda, like their progenitor, Uthman Dan Fodio? Why are they everywhere even the remotest part of other areas in Nigeria harassing, maiming, raping and killing the owners of the land?”
According to reports,   suspected Fulani herdsmen on June 25, 2025 invaded Ueken, the ancestral home of the Tai Kingdom, in the Ogoni Ethnic Nationality of Rivers State and murdered one  Goodluck Dimkpa, a father of one. The attack has reportedly caused panic and led to residents fleeing the community. It also generated coordinated protests from aggrieved Ogoni youths.
In a swift reaction, The Movement for the Survival of the Ogoni People (MOSOP) decried and  strongly condemned the  invasion  by suspected Fulani herdsmen.

In his denunciation,  MOSOP President Fegalo Nsuke described the incident as very unfortunate and deeply troubling, warning against a recurrence of the violence experienced in Benue State. “The killing of yesterday is bad and very unfortunate. We are getting preliminary information about how the herders gained access to the farmland, and it appears some hoodlums may be collecting money and granting access illegally.”

He called on the Hausa community in Rivers State to intervene swiftly to prevent further attacks.
“We want the Hausa community in Rivers State to take urgent action to ensure these issues are resolved”.
But will such appeal and requests end the violent disposition of the Fulani herdsmen? It is not saying something new that the escalating threat and breach of peace across the country by the Fulani herdsmen or those suspected to be Fulani herdsmen, leaves much to be desired in a country that is bedevilled by multi-dimensional challenges and hydra-headed problems.

On June 13-14, 2025, about 200 adults and children were reported to have been gruesomely murdered and burnt in Yelewata, Guma Local Government Area of Benue State, by suspected herdsmen who stormed the community, attacked the innocent people, and wreaked  havoc described as one the deadliest attacks in the Middle Belt of Nigeria, in recent times.Two days before the Yelewata senseless massacre, precisely on June 11, 2025, about 25 people were killed in Makurdi still by people suspected to be Fulani herdsmen.
Plateau State, Southern Kaduna and other Middle Belt States have their own tales of woe from the unprovoked attacks by the Fulani herdsmen leading to loss of lives and properties.
Some upland Local Government Areas  of Rivers State, such as Etche, Omuma, Emohua, Ikwerre, Oyigbo, Abua, Ogba/Egbema/Ndoni, have severally recounted their ordeals, as herdsmen invaded farmlands, destroyed crops, raped female farmers and killed protestant residents.

In my considered view the Fulani herdsmen whom life means nothing to, have gone too far. The right to life and property are fundamental but the  herdsmen’s invasions violate such inalienable rights of the people.Already Nigeria seems to exist on a precipice with the majority of her about 200 million people groaning in the quagmire of unpopular economic policies, reprehensible democratic practices translating to a gale of decampment to the ruling All Progressives Congress (APC) which is a tell-tale sign of an imminent one party State, looting of public funds with impunity and barefaced corruption in all sectors of the nation.
Nigerians, therefore, cannot afford to live with the debilitating consequences that the activities of the Fulani herdsmen portend in the face of the trending precarious socio-political and economic challenges. In fact, in all the States like Benue, Borno, Plateau, where incessant herdsmen attacks are frequent, residents live in petrified fear because of the disregard and disrespect for the sanctity of human lives. This fear leads to gross lack of development.
The governors of those States though Chief security officers, seem to be incapacitated, to carry out the primary responsibility of protection of lives and property of their citizens as enshrined in the grand norm. The mayhem caused by herdsmen in many states of Nigeria has left indelible pains in some families and communities, sufficient enough to make the government to control the activities of the herdsmen.
Some of these men who claim to ply their occupation are seen carrying lethal weapons. Which law in Nigeria gives people right to illegally possess weapons? How could the herders publicly carry lethal weapons without security operatives’ arresting and questioning them? The Fulani herdsmen, it’s not out of place to say,  are above the law. Because of their possession of weapons, the herdsmen are licensed to destroy lives, property and crops-the source of livelihood of others, thereby increasing food insecurity, poverty, hunger,  hostility and lack of development.
Do the Fulani herdsmen have an expansionists agenda, like their progenitor, Uthman Dan Fodio? Why are they everywhere even the remotest part of other areas in Nigeria harassing, maiming, raping and killing the owners of the land? Such nonsense must be made to stop, no matter whose ox is gored. Security operatives should be proactive to check  attempts of Fulani herdsmen to breach the peace. They should arrest and prosecute culprits because Fulani herdsmen who perpetrate  the heinous  acts have always been allowed to go  non reprimanded.
There is need to enhance vigilance and community coordination while residents should be alert,  take necessary precautions and work with traditional rulers, chiefs, youth leaders and local vigilante to stem the ugly trend.
Again the wanton destruction of lives and properties which no doubt has overwhelmed the Nigerian Police, makes the clamour for State Police, indispensable. The National Assembly should consider the amendment of the Constitution to allow States to have their Statutory policing agencies.
Igbiki Benibo
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Opinion

Is Nigeria Democratic Nation?

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As insurgency has risen to an all time high in the country were killings has now grown to be a normal daily activity in some part of the nation it may not be safe to say that Nigeria still practices democracy.

Several massacres coming from the Boko Haram and the herdsmen amongst all other insurgencies which have led to the destruction of homes and killing, burning of communities especially in the northern part of the country. All these put together are result of the ethnic battles that are fought between the tribes of Nigeria and this can be witnessed in Benue State where herders and farmers have been in constant clashes for ages. They have experienced nothing but casualties and unrest.

In the month of June 13-14, the Yelwata attack at the Guma Local Government Area by suspected gunmen or herdsmen who stormed the houses of innocent IDPs (Internally Displaced Persons) claiming the lives of families, both adults and children estimated to be 200 victims. They were all burnt alive by these unknown gunmen.

This has been recorded as one of the deadliest insurgencies that had happened in recent years.  Some security personnel that were trying to fight the unknown gunmen also lost their lives.

Prior to the Yelewata attack, two days before the happening, similar conflict took place in Makurdi on June 11, 2025. 25 people were killed in the State. Even in Plateau State and the Southern Kaduna an attack also took place in the month of June.

All other states that make up the Middle Belt have been experiencing the farmers/herders clash for years now and it has persisted up till recent times, claiming lives of families and children, homes and lands, escalating in 2025 with coordinated assaults.

Various authorities and other villagers who fled for safety also blamed the herdsmen in the State for the attack that happened in Yelwata community.

Ehebha  God’stime is an Intern with The Tide.

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