The Lagos Chamber of Commerce and Industry (LCCI) has faulted the CBN and the Nigerian Deposit Insurance Corporation (NDIC) over the current happenings in the banking sector.
The LCCI President, Mr Solomnon Onafowokan, said in a statement that if the two bodies had done their job they would have nipped the crisis in the bud.The current state of affairs is a strong indictment on the part of the Examination and Supervision Departments of the CBN and the NDIC. Their primary functions are to regularly carry out examination and supervision of these banks, Onafowokan said.
The CBN governor, Sanusi Lamido Sanusi, on August 14 sacked the chief executives of Union Bank, Intercontinental Bank, Finbank, Afribank and Oceanic bank over alleged mishandling of loans.Since then the Economic and Financial Crimes Commission (EFCC) has gone after quite a number of bank executives and the banksâ€™ debtors. Onafowokan said the CBN should expedite action on the audit of the remaining 14 banks. The president added that the partial audit had created a suspense situation for banks that had yet to be audited and had put some of them under stress.Â According to him, the ideal thing is to complete the entire exercise before announcing the outcome. He said the CBN should also make pronouncements that would give confidence and comfort to the depositors of the banks that had yet to be audited. Onafowokan said the major lesson from the crisis was that there was the need to strengthen the economy through proper diversification and enhancement
of the real sector of the economy.Â He said that unless investors in the real economy were strong, there would be limited investments for the banks to fund. Onafowokan said the sectoral concentration of credit on oil and gas, telecommunications, capital market and trading were manifestations of the structural weakness of the Nigerian economy.Â It is in the interest of sustainable economic growth to have an enabling environment for businesses to thrive and support the financial system, he said.