Regulatory Alert – NIGERIA: CBN upends 2005 Soludo-era banking reforms

I seek your indulgence to deviate from our regular I.T. beats to share a write-up i saw on PROSHARENG.COM website about Nigeria’s Central Bank Governor, Lamido Sanusi’s Banking reforms.

Reactions welcomed.

Nigerian Central Bank Governor Lamido Sanusi has true to form and our longstanding expectations finally upended the fundamental structure of the Nigerian Banking sector. In a 8 September directive titled ‘Scope, Conditions & Minimum Standards for Commercial Banks Regulation #1’ Sanusi has given the country’s 24 universal banks 90 days to present re-organization plans and apply for new licenses. In 2004, after taking office, the former central bank governor Charles Soludo issued a directive forcing the consolidation of the country then almost 100 banks into 25 large universal banks by requiring a new minimum capital requirement of N25 billion. The M&A activity that ensued concurrent with the broader macroeconomic reforms launched under former Finance Minister Ngozi Okonjo-Iweala spurred the Nigerian Stock Markets to multi decade highs.

While Soludo’s reforms dramatically improved the capital base of the local banks and boosted the local bourse to dizzying heights, the reforms however failed to have any major structural macroeconomic impact on two of Nigeria’s largest economic sectors – Agriculture and Manufacturing. By late 2007 the agricultural sector, which accounts for almost 40% of Nigeria’s GDP, and which still employs the largest number of workers on received on average only about 5% of total bank private sector credit. The manufacturing sector which accounts for about 18%-20% of GDP also got very little credit from the consolidated banks.

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I Hate Windows – I am Afraid of Linux

Below is an excerpt from an article on www.osnews.com. It was published way back 2002.

First, a little background. I am a Windows user who has been using Windows since 3.1. I am not a programmer or a developer, I am a user. I process photos, use the internet, e-mail, write letters, play the ever important games and even use it to develop my comic strips. I am not computer illiterate and I use my computer with confidence and skill. Now with that said. I hate Windows.

Windows is what has always been around and I have always used it. I have seen the “Blue Screen of Death”. I have lost countless documents and information I have so carefully assembled. I have had a complete corruption of my hard drive by Windows. I have updated to new Windows products and found out that vital software programs that I use will not work. I have had to update my hardware to keep up with the ever-hungry latest version of Windows

The first dillemma that I faced (with Linux) is what company should I go with? As a Windows user I really never heard of the many different companies that produce Linux. I have heard of Red Hat and Mandrake (now known as Mandriva). I have read about them sort of on web pages, but since I never wanted to use Linux before I did not pay much attention. I wanted to find a version that was easy to install, I have heard the nightmares of having to configure all the hardware yourself. I read the web pages and decided to go with Mandrake. I really could not make heads or tails of the different distrubutions, even in the reviews. I picked Mandrake because it seemed like an easy install. Why did I have to pick? Why not just go to store and buy what ever and it is the right one?

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