Editorial
Salaries Of Bank Executives In A Dwindling Economy
When the Central Bank of Nigeria, (CBN), not too long ago sacked chief executives of some troubled banks in Nigeria and traced their investments to 60 multi-million naira shops in Dubai, many Nigerians expected a comprehensive sanitization of the financial sector.
For instance, apart from their removal and subsequent trial for alleged corrupt enrichment, many had thought that their fabulous pay packages which normally formed an additional driving force for their flamboyance would be addressed.
Instead, the apex bank re-appointed substantive managing directors in replacement who are now known to earn the same fabulous salaries considered very outrageous, even unthinkable by the banking public whose funds form part of the package.
For instance, a new CBN appointee in one of the troubled banks, whose predecessor was removed in August, this year, is said to have earned a whooping N5.8 million as October salary, exactly the same amount the deposed managing director often received.
That figure, The Tide learnt does not include questionable quarterly payments and other sundry allowances usually not contained on the monthly payroll.
Just like the managing directors, the executive directors of the affected banks, it is now known, received take-home pay of N3.8 million each during the same period, a figure which is exactly the same paid to their sacked predecessors. Like their superiors that amount excludes the now known quarterly payments and sundry allowances not usually contained in the payroll.
The Tide is concerned because; in order to save the ailing banks from total collapse public funds were injected into the financial sector which naturally should bring about attitudinal change in the spending pattern of banks.
Furthermore, the new bank executives should have seen public involvement in their private malaise as a pointer to the fact that their flamboyance and lavish personal investment, outside the shores of the country, like the 60 mega shops in Dubai will no longer be acceptable and that such a life style should be done away with.
But it seems that such a tall expectation will remain a pipe dream because even the CBN, The Tide understands, has said it is not part of its own duties to recommend the emoluments of bank staff so long as such remuneration do not affect the finances of such banks.
We disagree with the CBN to the extent that public funds were injected into the banks and for that singular reason should not be allowed to exclusively decide how much to pay to themselves in view of the dwindling resources which prompted government intervention in the first place.
Another, is the state of the economy which is made even worse by the prevailing global economic meltdown both of which should require some form of fiscal responsibility of whoever is charged with the responsibility of managing either public or depositors funds.
We say so because, even in the USA, in appreciation of the hard times President Barrack Obama imposed $500,000.00 pay cap on some senior executives whose firms benefited from government financial rescue funds.
This is why The Tide thinks that it would not be entirely proper for the CBN to look the other way and fail to wade into the pay disparity, if for nothing else, the crippling economic times Nigerians and others alike today face.
It is our view that N69.6 million annual pay packages to a bank chief executive whose institution was bailed from collapse with public funds is outrageous and unacceptable and so should be reviewed.
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Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
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