The CEO of one of Nigeria’s bigger banks says there no need for a bank bail , this is contrary to the word on the streets. The Federal government of Nigeria is preparing a package for some banks who are in a bind. Then again our man is a CEO, frequent readers of this blog know little weight is accorded to CEO’s press releases. In tune with the whispers on the streets however the Tribune writes; Investigations conducted by the Nigerian Tribune showed that the nation’s banking industry is currently facing operational challenges, liquidity crisis and, in fact, all the challenges associated with the meltdown. Currently, some of the banks are finding it difficult to meet the expectations of their customers. Customers in the banks’ branches, especially in the rural areas, in most cases, are finding it difficult to make withdrawals as they have to wait for other customers to make deposits, owing to the banks’ poor liquidity positions. Even the National Council For Financial and Economic Development warns of a serious threat to the Nigerian economy, reminding us that Nigerian equity market has lost N8trillion to this crisis.
Though WEMA’s CEO claims everything is under control just like every other CEO out there calming frayed nerves. Some banks are forced to pay out remittances to Nigeria in the local currencies as opposed to the senders currency. A check on the operations of some of the banks, during the week, revealed that some customers, who received money from abroad, were practically compelled to claim same in Naira.
Stage 1 Denial: This is eerily similar to the state of denial undergone by many US banks even as the house of cards were crumbling. If the American experience is anything to learn from, openness and swallowing the bitter pillromptly could save Nigeria from a drawn out state of uncertainty. I long to be proven wrong.
Unfortunately, I don’t think you will be proven wrong.
sad