Breaking News

Shareholders seeks CBN’s control of banks’ ratings report

By Michael Eboh
Following the controversy generated by recent ratings of banks in the country  by a number of rating agencies, shareholders, under the aegis of Proactive Shareholders of Nigeria have emphasized the need for Central Bank of Nigeria (CBN) to commence full control of all ratings on Nigerian banks before it is published.


Speaking in Lagos, ahead of its forthcoming Annual Investors’ Summit, Mr. Oderinde Taiwo, National Coordinator of the group, stressed the need for the CBN to promote a bill that will ensure that any organisation conducting survey on Nigerian banks with the aim of rating the banks  should get approval from it before the results of the report are published.

He noted that these reports and rating have caused panic in the Nigerian economy in the past, noting that the reports, if not checked, will put the investments of Nigerians in jeopardy.

He said, “There have been a number of ratings on Nigerian banks, these ratings, especially the most recent, can be identified as commercial ratings, because we do not understand the rationale or parameter used in the rating. This has brought to the fore, the need for the CBN to promote a Bill whereby any agency rating Nigerian banks should sought and get approval before the report is published. This is because this ratings if not checked, may send wrong signals to the investing community and also put our investments in jeopardy if such reports are not regulated.”

He also called on the registrars in the capital market to take advantage of advancement in information technology infrastructure, urging them to introduce online or electronic notice (e-notice) of meetings.He disclosed that the e-notice of meeting or online notice will help address the issue of late dispatch of annual reports and notice of meetings to shareholders.

According to him, the need to introduce electronic dispatch of mails and notices of meetings, becomes relevant, when viewed against the backdrop of the recent strike embarked upon by staff of Nigeria’s postal agency and other government agencies.

He disclosed that the forthcoming seminar is designed to contribute to the restoration of confidence in the market, noting that it will serve as a catalyst for individuals and institutional investors who have developed lukewarm attitude to the market to become active participants again.He said, “The seminar is designed to give hope and strength to fainting and doubting investors that the Nigerian capital market is still very viable and virile and that our companies’ fundamentals are still very strong.”


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.