By Rotimi Oketade Esq
Banking and other related businesses are anchored on TRUST. This is equally well engraved and enshrined in the BOFIA, 2020. However, in Nigeria, the meaning of TRUST is distrust. This is evidently clear from the trajectory of failed Banks in Nigeria. These Banks includes Commerce, Société General, Republic, Skye Banks etc. to mention few. The reasons for extinction of these Banks and many others are principally lack of strict adherence to Banking Acts, rules and codes of Corporate governance. The nonchalant attitudes of the regulatory bodies is another cause for concerns.
A deep insight into Nigerian Banking Industry will show that the industry is on the edge because of deliberate profligate policies by those who should know better. The problems in the industry starts from how Banking licences are granted, lack verifiable antecedents of Bank promoters, the politicisation of the business of Banking by criminal political marauders at the corridors of powers. The combined effects of all these shenanigans led to Banking consolidation of 2004 and the birth of AMCON to warehouse toxic loans. It is only in Nigeria that from the genesis, loans are programmed to fail by intentionally circumventing the rules of the game.
The lay back attitudes of some shareholders also Stoke the endemic fire of corruption. Above all, the absence of square criminal liabilities on Bank defaulters is another incentive. The net effects of all these nefarious acts is economic disaster beckoning.
The First Bank issues that occasioned this latest development will not be the last as some others Banks are in throes of death due to distress because of financial rape orchestrated by insiders dealings and abuse.
Unfortunately, the buccaneers in the system are pretending over the monetary and fiscal vicissitudes they deliberately and concertedly launched on the country, through avarice, greed and covetousness.
They wantonly disregard regulatory functions, monetary, fiscal and economic prudential advises from global eminent economists.
They pursued economic i.e. (monetary and fiscal policies) voodoo through dubious pluralistic cum unsustainable foreign exchange regime, stupidly importing fuels with its attendant economic woes, instigating senseless terrorism with killings of innocent citizens on industrial scale, embarking on embarrassing poverty alleviation policies that only cater for their cronies, bogus and perforated borrowings for white elephant projects, porous, devious and duplicitous energy arrangements etc.
Through institutionalisation of pandemic I culture, they foster vicious corporate and political capitalism that feeds the scoundrels and wastrels amongst us. The end result will not be friendly. My fervent prayers is that, these shenanigans shall consume the authors, committee of thieves and their lieutenants.
To curb the incessant and systemic failure in the Banking industry and the economy, there is need to reset many laws and trust deficit, the process of granting Banking licenses to ensure that credible people are the promoters.
Also, failure to pay Bank loans must be criminalised, it must not be limited to seizure of corruption related properties as enshrined in the new AMCON Act. There is absolute need for strict adherence to BOFIA, CAMA, 2020, albeit, CAMA came with some innovations but there is need for improvement because of cesspool in the system. The investment and security Act need to be strengthen too. Global industry best practices, rules and codes of corporate governance must not be circumvented. Above all, there’s need for virile, vibrant and robust shareholders activism to ensure probity and accountability in the Banking industry and the economy. After all, it’s often said that, the absence of vigilance of farmstead brought birds to consume garden eggs.
Rotimi Oketade, Esq is a Corporate and Commercial legal practitioner based in Abuja, Nigeria
