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Recapitalisation: MfBs canvass regulatory support to attract investors

Have bandit bankers struck again?

“Banka’ toxic assets may hit N3.0 trillion”. Emeka Anaeto, Economy Editor, VAGUARD, July 17, 2016. When George Santayana, 1863-1952, warned that “Those who do not remember the past [mistakes] are condemned to repeat it” (VANGUARD BOOK p 93), he did not have Nigeria’s banking sector in mind. In fact, that sector had recorded more high profile crooks than any other since the first authentic Nigerian banks were established in the 1950s by individuals whose names would not be mentioned now.

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Nigeria’s economic outlook for the rest of 2016

That the Nigerian economy is in a recession is no longer news. In fact, for some of us, it was predictable, even long before the Economic Management Team was aware that it was on the way. The International Monetary Fund, IMF, recently projected contraction of 1.8% for 2016. The Federal Government while not officially contesting the IMF estimates still clings to the faint hope that “the economy will show recovery in the third quarter of this year” (Mrs Adeosun).

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Diving headlong into another debt trap – 2

Popularity, real or imagined, is the opium of the political classes. The only way to wound a politician’s ego is to tell him that he is no longer popular or that his popularity is nosing downwards. Two weeks ago, President Buhari announced that the goodwill he started with among Nigerians is still intact. That shows the reader what the shift from candidate to President can do to anybody.

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Bailout, governors

Diving headlong into another debt trap

There are two Ministries scaring the hell out of a lot of experts these days the Ministries of Justice and Finance. Right now, it is difficult to know which of the two will finish us in first. This is not the Law page, comments on the activities of the Minister of Justice and Attorney-General of the Federation will be left to others versed in litigation. Finance is another matter and here what is easily discernible is that the Federal Government is setting a bad example in fiscal irresponsibility for the states by adopting a “borrow-and-spend” policy.

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How to kill a bank, cbn style

The report by Collins Nweze which dominated the financial news on that Tuesday ended weeks or even months of rumours and speculations that one or two banks were in distress. Even the unsolicited comment by one of the rating outfits, last week, stating that Nigerian banks are sound only served to increase anxieties among stakeholders. With the Central Bank of Nigeria, CBN, announcement on Monday afternoon of July 4, 2016, clients of Skye Bank, at least have now had their worst fears confirmed. The ripple effects in the banking sector are immeasurable but will certainly be considerable.

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Buhari Learns A Bitter Lesson: Economics is No Respecter of Presidents

Taft was American President from 1909 to 1913; meaning he served only one term during which the US economy was in a recession. He paid the price for coming to power at the wrong time. Taft was not the first, and he would not be the last president, to learn the age-long lesson that economics, like rain, sun or earthquakes etc, respects no president’s wishes. When Karl Marx, 1818-1883, pronounced that “Men make history, but not just as they please” (VBQ p 93), he must have had leaders like Buhari in mind. Nigerians were aware that Buhari, until he went to London for “God-knows-what”, was adamantly opposed to the devaluation of the naira for reasons that were badly explained because he is not an economist.

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Bailout, governors

Another round of bailout for states? God forbid (2)

The first part of this series appeared last week after the Federal Minister of Finance reversed herself by announcing that the Federal Government was again considering a bail-out package for the states. Even, before writing last week’s column, it was clear that advising governments in Nigeria is just about as useful as talking to a wall. They ask for “all hands on deck”; but they take cognizance of only the hands closer to the corridors of power and whose vested interests must be protected at all costs – even if the people pay dearly for it.

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Bailout, governors

Another round of bail-outs for states? God forbid

The same Chinese have been known to derisively refer to a person or government saying two opposite things at the same time as someone “speaking with forked tongues”. The Federal Government of Nigeria has been speaking with forked tongues with regard to fresh bail-out for the states, who despite a previous botched bail-out, are still in financial turmoil. Irrespective of political party in power, all the states are in various degrees in trouble. Even Lagos State, the Centre of Excellence, is feeling the pinch badly.

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Forget the 2016 budget; it’s no longer realistic(2)

The news report then went on to mention various individuals making the suggestion. It is the sort of report which makes one to wonder if it is intended to be taken seriously or as a joke. But then, one is reminded of the Hubert Humphrey, 1911-1978, late Vice President of the United States, who in Madison, Wisconsin, on August 23, 1965, left the world with the gem: “The right to be heard does not automatically include the right to be taken seriously.” The experts were wasting their time for several reasons. But before going into those reasons, it is vital to remind Nigerians of a new phenomenon in our economic landscape.

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Forget the 2016 budget: It’s no longer realistic

The 2016 budget should be thrown into the waste paper basket. It can no longer serve as a guide to what citizens can expect of the Federal, States and Local Governments this year. The Finance Minister’s admission, two days before the President addressed the world on his first year in office could not have come as a surprise to economists, finance experts, accountants and even those who have a good grasp of simple arithmetic and can think deeply. If ever there was a budget that was doomed even before it was written, the 2016 budget was it.

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