Business
Bank Directors Await CBN Ultimatum’s Results
Fears of losing investments and positions have gripped directors of banks as they await the verdict of the Central Bank of Nigeria (CBN) following the expiration of the December 31,2009 deadline for them to regularise their non-performing facilities.
Sources revealed that many of the directors who failed to regularise their non-performing facilities had subjected the CBN to immense pressure to extend the deadline for the exercise which is one of the measures being taken by the apex bank.
A well placed official told The Tide source that the directors are employing the services of The Presidency and members of the National Assembly to lobby the CBN to extend the deadline for the exercise. It was gathered that the moves made by most of the directors to regularise their facilities, including selling off of their holdings in the stock markets fell short of raising the required funds to meet their obligations in the market.
The CBN has directed all executive and non-executive directors with non-performing facilities, either in their banks or other banks and financial institutions to regularise such facilities on or before November 30,2009 failing which their appointments would be reviewed by December 31,2009.
The order was served to about 500 directors of the 24 banks through a memo titled “Proposed review of the appointments of executive and non-executive directors in banks”, sent out to all the banks. Debtor directors were known to have embarked on massive disposal of their various fixed assets, most of which did not attract buyers. It is believed that the apex bank may succumb to pressure for possible extension. As at close of banking activities last Friday, restive bank directors were seen making last minute efforts.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.