Shonekan Endorses N25bn Capital Base for Banks
By Idowu Sowunmi
Former Head of Interim National Governbment (ING), Chief Ernest Shonekan, yesterday supported the N25 billion capital base recently announced by the Governor of Central Bank of Nigeria (CBN), Prof. Charles Soludo, describing it is a good thing that could happen to the economy.
In an exclusive interview with THISDAY during the grand finale of 70th Anniversary of Women's Guild Auxiliary (WGA) of the Cathedral Church of Christ, Marina, the former Head of State noted that "if we are to develop our economy we need the banking industry to be able to fund developmental projects that will be found in all the sectors."
He observed that the new capital base is auspicius because "it is absolutely necessary for the Nigerian banks to compete with other banks around the world. So, the pronouncement I think is the right step in the right direction."
Shonekan, however, warned that "we need to be extremely careful about the way and manner of meeting up with the directive," adding that "if we look at some of the private and public offers that have been issued and the manner some of the banks are moving around to comply with the directive, I think they must not unnecessarily rush to do this. Though it is a tall order, they still have between a period of 16 and 18 months."
The new capital base has generated mixed reactions from private and public sectors in the last few weeks. But the former Head of ING predicted that some of the banks which have gone into the market to shore up their capital base may likely achieve this.
"I'm not sure whether all the banks operating in the country will be able to achieve this within the period of the time. Let's hope that at the end of the day the rule will help all the industries to enable them to be more efficient," he added.
About the controversy on the time frame of the policy, Shonekan said "in any programme, you will find people who will support it and people who will not. Whether the time is appropriate or not, the notice has been given for everybody to increase the capital base."
On the political issue of many retired generals in the presidential race for 2007, Shonekan, who former military President, General Ibrahim Babangida (rtd) handed over power in 1993, said that "our constitution gives every right to all Nigerians to aspire to that position. I think what we need in Nigeria is to pray to Almighty God to give us a good leader. A leader who will take care of all Nigerians, work relentlessly hard to give us the basic things, have the fear of God and will always do what is right." He declined to be categorical whether he would support Babangida, but said "voting supposes to be a secret ballot and I have not seen any general revealing his strategies before going to war. Let's wait until the time comes."
On his continual silence on what transpired between August and November 1993 before he was ousted by late General Sani Abacha, Shonekan said "there is time for everyhing. There is time to talk and time to keep quiet. At the appropriate time, the whole nation will know what transpired."
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