Opinion
Crisis In The Banking Sector
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
Opinion
Wike VS Soldier’s Altercation: Matters Arising
The events that unfolded in Abuja on Tuesday November 11, 2025 between the Minister of the Federal Capital Territory, Chief Nyesom Wike and a detachment of soldiers guarding a disputed property, led by Adams Yerima, a commissioned Naval Officer, may go down as one of the defining images of Nigeria’s democratic contradictions. It was not merely a quarrel over land. It was a confrontation between civil authority and the military legacy that still hovers over our national life.
Nyesom Wike, fiery and fearless as always, was seen on video exchanging words with a uniformed officer who refused to grant him passage to inspect a parcel of land alleged to have been illegally acquired. The minister’s voice rose, his temper flared, and the soldier, too, stood his ground, insisting on his own authority. Around them, aides, security men, and bystanders watched, stunned, as two embodiments of the Nigerian state clashed in the open.
The images spread fast, igniting debates across drawing rooms, beer parlours, and social media platforms. Some hailed Wike for standing up to military arrogance; others scolded him for perceived disrespect to the armed forces. Yet beneath the noise lies a deeper question about what sort of society we are building and whether power in Nigeria truly understands the limits of its own reach.
It is tragic that, more than two decades into civil rule, the relationship between the civilian arm of government and the military remains fragile and poorly understood. The presence of soldiers in a land dispute between private individuals and the city administration is, by all civic standards, an aberration. It recalls a dark era when might was right, and uniforms conferred immunity against accountability.
Wike’s anger, even if fiery, was rooted in a legitimate concern: that no individual, however connected or retired, should deploy the military to protect personal interests. That sentiment echoes the fundamental democratic creed that the law is supreme, not personalities. If his passion overshot decorum, it was perhaps a reflection of a nation weary of impunity.
On the other hand, the soldier in question is a symbol of another truth: that discipline, respect for order, and duty to hierarchy are ingrained in our armed forces. He may have been caught between conflicting instructions one from his superiors, another from a civilian minister exercising his lawful authority. The confusion points not to personal failure but to institutional dysfunction.
It is, therefore, simplistic to turn the incident into a morality play of good versus evil.
*********”**** What happened was an institutional embarrassment. Both men represented facets of the same failing system a polity still learning how to reconcile authority with civility, law with loyalty, and service with restraint.
In fairness, Wike has shown himself as a man of uncommon courage. Whether in Rivers State or at the FCTA, he does not shy away from confrontation. Yet courage without composure often feeds misunderstanding. A public officer must always be the cooler head, even when provoked, because the power of example outweighs the satisfaction of winning an argument.
Conversely, soldiers, too, must be reminded that their uniforms do not place them above civilian oversight. The military exists to defend the nation, not to enforce property claims or intimidate lawful authorities. Their participation in purely civil matters corrodes the image of the institution and erodes public trust.
One cannot overlook the irony: in a country where kidnappers roam highways and bandits sack villages, armed men are posted to guard contested land in the capital. It reflects misplaced priorities and distorted values. The Nigerian soldier, trained to defend sovereignty, should not be drawn into private or bureaucratic tussles.
Sycophancy remains the greatest ailment of our political culture. Many of those who now cheer one side or the other do so not out of conviction but out of convenience. Tomorrow they will switch allegiance. True patriotism lies not in defending personalities but in defending principles. A people enslaved by flattery cannot nurture a culture of justice.
The Nigerian elite must learn to submit to the same laws that govern the poor. When big men fence off public land and use connections to shield their interests, they mock the very constitution they swore to uphold. The FCT, as the mirror of national order, must not become a jungle where only the powerful can build.
The lesson for Wike himself is also clear: power is best exercised with calmness. The weight of his office demands more than bravery; it demands statesmanship. To lead is not merely to command, but to persuade — even those who resist your authority.
Equally, the lesson for the armed forces is that professionalism shines brightest in restraint. Obedience to illegal orders is not loyalty; it is complicity. The soldier who stands on the side of justice protects both his honour and the dignity of his uniform.
The Presidency, too, must see this episode as a wake-up call to clarify institutional boundaries. If soldiers can be drawn into civil enforcement without authorization, then our democracy remains at risk of subtle militarization. The constitution must speak louder than confusion.
The Nigerian public deserves better than spectacles of ego. We crave leaders who rise above emotion and officers who respect civilian supremacy. Our children must not inherit a nation where authority means shouting matches and intimidation in public glare.
Every democracy matures through such tests. What matters is whether we learn the right lessons. The British once had generals who defied parliament; the Americans once fought over states’ rights; Nigeria, too, must pass through her own growing pains but with humility, not hubris.
If the confrontation has stirred discomfort, then perhaps it has done the nation some good. It forces a conversation long overdue: Who truly owns the state — the citizen or the powerful? Can we build a Nigeria where institutions, not individuals, define our destiny?
As the dust settles, both the FCTA and the military hierarchy must conduct impartial investigations. The truth must be established — not to shame anyone, but to restore order. Where laws were broken, consequences must follow. Where misunderstandings occurred, apologies must be offered.
Let the rule of law triumph over the rule of impulse. Let civility triumph over confrontation. Let governance return to the path of dialogue and procedure.
Nigeria cannot continue to oscillate between civilian bravado and military arrogance. Both impulses spring from the same insecurity — the fear of losing control. True leadership lies in the ability to trust institutions to do their work without coercion.
Those who witnessed the clash saw a drama of two gladiators. One in starched khaki, one in well-cut suit. Both proud, both unyielding. But a nation cannot be built on stubbornness; it must be built on understanding. Power, when it meets power, should produce order, not chaos.
We must resist the temptation to glorify temper. Governance is not warfare; it is stewardship. The citizen watches, the world observes, and history records. How we handle moments like this will define our collective maturity.
The confrontation may have ended without violence, but it left deep questions in the national conscience. When men of authority quarrel in the open, institutions tremble. The people, once again, become spectators in a theatre of misplaced pride.
It is time for all who hold office — civilian or military — to remember that they serve under the same flag. That flag is neither khaki nor political colour; it is green-white-green, and it demands humility.
No victor, no vanquish only a lesson for a nation still learning to govern itself with dignity.
By; King Onunwor
Opinion
Ndifon’s Verdict and University Power Reform
Opinion
As Nigeria’s Insecurity Rings Alarm
-
Business4 days agoCBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation
-
Business4 days ago
Shippers Council Vows Commitment To Security At Nigerian Ports
-
Politics4 days agoTinubu Increases Ambassador-nominees to 65, Seeks Senate’s Confirmation
-
Business4 days agoFIRS Clarifies New Tax Laws, Debunks Levy Misconceptions
-
Business4 days agoNigeria Risks Talents Exodus In Oil And Gas Sector – PENGASSAN
-
Sports4 days ago
Obagi Emerges OML 58 Football Cup Champions
-
Business5 days ago
NCDMB, Others Task Youths On Skills Acquisition, Peace
-
Sports4 days agoFOOTBALL FANS FIESTA IN PH IS TO PROMOTE PEACE, UNITY – Oputa
