BAUCHI — THE Central Bank of Nigeria (CBN) is to begin full restructuring of the Nigerian security printing and minting company next year. The apex bank Governor, Professor Charles Soludo who was speaking at the sixth CBN seminar for finance correspondents and Business Editors held in Bauchi, Tuesday announced that the country would stop the importation of finished mints of Nigeria currency in 2007.
Soludo in his keynote address stated that the taking over of the company by the federal government was a temporary measure that would reposition it to meet the world-class standard.
According to him, the process of carrying out the restructuring would take the CBN between three and five years to ensure a thorough job preparatory to the privatization of the company. He said however, that only 50 percent of shareholding of the minting company would be sold out to Nigerian public while the government would retain the remaining percentage.
Professor Soludo stated that the apex bank had resolved not to go ahead with the management contract arrangement recommended by the panel having realized that the CBN has the ability and capability to manage the mint company. He expresses optimism that the mint company which is now in bad shape would be put in a proper shape to function effectively and the country would stop importation of its currency in 2007. Soludo said the CBN would not be fully involved in the running of the printing press to enable the bank concentrate on its four core responsibilities such as currency operations, external reserve monitoring, ensuring monetary and financial sector stability and serving as bankers and financial adviser to the federal government.
Meanwhile, the CBN governor said no bank in Nigeria rank among the top 1000 banks in the world, saying it was a big contrast to the past when 3 Nigerian banks ranked among the 500 top banks in the world. He also warned that the apex bank would not spare any bank involved in the sponsorship of oil bunkering, said the bank was waiting to get of any such report from any company for it to commence investigation. In a related development ,Governor Adamu Mu’azu of Bauchi state has appealed to the Central Bank (CBN) to create allowance for the existence of smaller banks which could not meet the N25billion recapitalization to carry out commercial banking activities.
Mu’azu made the call when he granted audience to the Central Bank Governor, Professor Charles Soludo who led his management team to pay courtesy call at the Government House, Bauchi.
He stated that smaller banks should be allow to exist but under close supervision of the apex banks. He noted their existence would encourage healthy competition between the mega and small banks.Speaking further, Governor Muazu decried how shareholders and investors have been denied access to their money following the collapsed of banks, adding that some have invested their live saving only for the bank to collapse. He noted that some have even died while the directors of such banks drive around in expensive cars.
The governor suggested a working collaboration with Economic and Financial Crime Commission to reassure that these directors were brought to book.
He stated that they should be force to pay back investors money.Muazu tasked the management of the apex bank to go extra mile to safeguard investors money. Noting that reforms should include the safety of their financial institutions so that investors could deposit their life saving without having nightmares.The governor stated that he knew that to bring back directors to account for their wrong doings was a difficulty task. He expressed his optimism that "where there is vision, there is determination to excel".
The governor appealed to the apex bank to see that investors do not suffer unnecessarily when banks are distress.Responding, the Governor, Professor Charles Soludo, expressed his optism that the reform in the banking sector would result to big banks that would strengthened the economy.
He added that commercial banks due to low capital base could not finance capital intensive projects as investors look to foreign banks for their finance.Professor Soludo gave assurance that the apex bank was working hard to see a stable financial system that would contribute to the economic growth of the nation.The CBN Governor observed that the law regarding the vicarious liability of banks directors exist but regretted that they were not enforce. He assured that henceforth the law would take it cause.
