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Where Is $7bn CBN Placed With 14 Banks?

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5 years ago

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By our business correspondent

THE subject of the narrative, in this column, last week, was the $7bn which Festus Odoko, former CBN Corporate Affairs Director, confirmed had been deposited with 14 Nigerian banks in October 2006. It is not clear how many banks, actually, succeeded in raising the mandatory capital base of N25bn, and the additional N35bn steep threshold, required to manage part of Nigeria’s foreign reserves; nevertheless, on hindsight, CBN may have quietly dropped this clearly ambitious requirement, so as to pursue its declared agenda.  Regrettably, despite several promptings in repeat publications of the above title by this writer since 2006, CBN management, remained inexplicably, taciturn to any request to confirm status of the $7bn placed with Nigerian banks, without collateral, equity participation or profitable return after 13 years! Lately, however, the Chairman of the Special Presidential Panel for Recovery of Public Property, Mr. Okoi Obono-Obla, noted in a NAN report, in Abuja, on September 7, 2018, that these banks have not repaid the $7bn to government’s treasury “after 13 years.” Curiously, according to the Panel’s Chairman, “when we enquired from CBN, the state of that money, the banks told us that the money was ‘dashed’ to them.” Consequently, upon the Presidential Panel’s request, the EFCC ultimately, invited Dr.Obadiah Mailafia, a former CBN Deputy Governor, to shed light on the controversial $7bn ‘gift’ to banks, when Soludo was CBN Governor in 2006. It is a story of how hapless Nigerians may have been insensitively betrayed, when CBN dashed $7bn of scarce forex to 14 banks, even when CBN and same government were already neck deep in debt to these bankers.” Below is Mailafia’s testimony, which was published in BusinessDay edition of 24/1/2019. Please read on. “In early October of 2006 the then Governor of the CBN, Prof. Chukwuma Soludo brought a proposal to the Board to the effect that he wanted 14 of our commercial banks to take part in the management of our external reserves in partnership with foreign banking associates. He explained that it was rather unfair that only external custodians such as J. P. Morgan, Goldman Sachs and others were having a piece of the action. At the time, we were feeling rather triumphal. The banking reforms had been a success. We had managed to reach a deal with the Paris Club of international creditors. The economy was booming. Our foreign reserves had grown from a lowly US$10 billion in 2004 to an impressive US$38 billion in 2006… We had just launched the FSS2020 project which aimed to position our country as the financial hub of the continent by 2020.” “As I recall, there was a lively debate on the matter. On the face of it, it seemed a good idea to allow our banks to have experience of managing our external reserves as a means of socialisation into the complex world of financial engineering and global financial markets. I had a modicum of doubt, but, alas, could not voice it. The professor was a Mister Know-All with an ego of the Order of Lucifer. The Curse of Mephistopheles.” “Moreover, he always brandished his closeness with Aso Villa to neutralise any dissent. There was a whispering campaign about me being “the black sheep” that would not play ball…” “At the end of the day, the majority carried the day with regard to local participation in foreign reserves management. I must emphasize–for the avoidance of doubt–that at no stage did anyone get even the remotest impression that it was meant to be a loan, bailout or forbearance.” “Of course, it would be another matter entirely if the banks, as an afterthought—after more than a decade–would now prefer to give a different interpretation to that financial deal. This should be confirmed from the archival records of the CBN. The banks had a mandate as fund managers of the US$7 billion that was distributed to them; of which principal and interest were to be returned within the agreed tenor. But I was not privy to those details.” “On 26 March 2007, while busy at my desk in the early afternoon, news came on national radio that I had ceased to be Deputy Governor and had been moved to the presidency to a 419 position as Special Adviser to the President on Political Economy. I resigned myself to the will of God. I had worked alone in the office up to midnight of 31st December struggling to meet the IMF liquidity targets set for us under the Special Support Instrument. Unfortunately my colleagues deliberately sabotaged me. That may have explained my unceremonious departure. I later got to know that late President Umaru Yar’Adua, having studied my dossier, had instructed that I be reinstated immediately. Unfortunately, that same week he went into coma, never to recover. His presidential directive was never obeyed.” “I mention these events in order to explain that, from October 2006 when the reserves were allocated to 14 banks, up to the time I left in March 2007, was only slightly over 5 months. The Directorate for Economic Policy which I headed is the most important function of any central bank, but it is the one Directorate where we do not handle money. We work with computable models for monetary policy while undertaking research and statistical-analytical work to drive economic development.” “I was therefore surprised when, two weeks ago, a friend in the security services sent me a circular emanating from the Villa in which my name had been included on a list of 30 people slammed with a travel ban under Executive Order No. 6. Dated 11 December 2018. I managed to trace their office to a sprawling nondescript building in the outskirts of Asokoro. There, I met a squadron of investigators who gleefully welcomed me as a new captive. I was detained for questioning for the whole day and had to fill wads upon wads of paper about a “missing US$7 billion dollars” during my time at CBN…” “Without prejudice to the ongoing investigations, my position is that whatever monies that were given to banks to be managed on behalf of CBN, must be returned with principal and interest. I feel duty (bound) to share with the panel all that I know about this case. But I will first affirm my legal rights to be treated above board as a witness rather than suspect.” COMMENT: Ultimately, however, even if there is no criminality in the $7bn gift to banks, there is clearly a good case, if refund is not feasible, for converting the $7bn, plus compounded interest, to significant equity in the respective banks. SAVE THE NAIRA, SAVE NIGERIANS!!!

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Business

Access Bank Group, Aig-Imoukhuede Foundation Pledge $300m to Transform Africa’s Economic Landscape

Published

2 days ago

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May 16, 2024

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“We can’t wait to be saved; Africans need to solve Africa’s problems. This $300 million commitment reflects this reality’’ – Aig-Imoukhuede

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Aig-Imoukhuede Foundation and Access Bank Group have pledged $300 million in charitable commitments over the next 20 years. Access Bank has committed $200 million and Aig-Imoukhuede Foundation committed $100 million.

President Paul Kagame, President of the Republic of Rwanda and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, at the Africa CEO Forum 2024 in Kigali…Thursday.

This will fund African government initiatives with a proven potential to transform national economic performance.

Speaking about the commitment, Aigboje Aig-Imoukhuede, Chairman, Access Holdings and Co-Founder, Aig-Imoukhuede Foundation, said, “We can’t wait to be saved, Africans need to solve Africa’s problems. This $300 million commitment reflects this reality.”

President Paul Kagame, President of the Republic of Rwanda and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, at the Africa CEO Forum 2024 in Kigali…Thursday.

Appropriately, this announcement was made at the Africa CEO Forum 2024 in Kigali, Rwanda, where the theme of this year’s event is ‘At the table or on the menu?’. At the event, CEOs from across the continent joined to discuss how Africa can demand a seat at the global table, rather than continuing to wait to be invited.

The fund will see the creation of an African-led Super NGO in partnership with academics, experts and philanthropists across the globe who are committed to closing the gap between Africa and the rest of the world. The NGO will work with African governments to provide the funding, governance and talent required to successfully execute game changing government reform programs, especially in the delivery of digital public infrastructure.

The development comes at a time when Ajay Banga, President of the World Bank, has warned wealthy countries that it would be short-sighted to “ignore” Africa. This landmark Africa-led initiative could not have been better timed.

Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC and Co-founder, Aig-Imoukhuede Foundation and Ofovwe Aig-Imoukhuede, Co-founder, Aig-Imoukhuede Foundation, on the sidelines of the Africa CEO Forum 2024 in Kigali…Thursday.

“We African leaders cannot sit back and watch the 4th Industrial Revolution transform the rest of the world while leaving Africa falling further behind. We have to create our own ‘table’ by using technology to unlock the power of our youth, giving Africa a greater voice in the world. It’s today’s leaders who will determine whether or not we grab this opportunity,” Aigboje Aig-Imoukhuede continued.

The availability of digital public infrastructure is a proven and cost-effective way for developing nations to break free of the status quo. It provides citizens with access to the same public goods and services available to citizens of advanced nations.

The India Stack has become a shining example of what can be achieved when visionary public and private sector leaders partner for development.

The Access Bank and Aig-Imoukhuede Foundation inspired NGO will make such partnerships a reality and delivering measurable improvements to the lives of Africans across the continent.

Notes to Editor:
For media inquiries, please contact:
communication@aigafrica.org or +234 808 5716 788
mediarelations@accessbankplc.com or +234 803 320 4315

ABOUT THE AIG-IMOUKHUEDE FOUNDATION
The Aig-Imoukhuede Foundation is a public sector-focused philanthropic organisation founded by Aigboje and Ofovwe Aig-Imoukhuede to improve the lives of Africans through transformed public service delivery and increased access to quality primary healthcare. The Aig-Imoukhuede Foundation accomplishes its mission by supporting the reform initiatives of public sector entities, providing financing, technical support, and capacity-building programmes and resources for the public sector workforce. The Foundation also provides funding and strategic support to drive the work of affiliate organisations such as Africa Business Coalition for Health (ABC Health), the Private Sector Health Alliance of Nigeria (PSHAN), the Nigerian Solidarity Support Fund (NSSF) and others.

For more information, please visit www.aigimoukhuedefoundation.org.

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AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL

Published

4 days ago

on

May 14, 2024

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AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

At the esteemed Choose France Summit 2024, held on Monday, May 13, 2024, Aigboje Aig-Imoukhuede, the Chairman of Access Holdings PLC, was formally appointed as the President of the France Nigeria Business Council (FNBC) by the President of the French Republic, President Emmanuel Macron.

Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.

The France Nigeria Business Council (FNBC) stands as a pivotal coalition of Nigerian private sector business leaders, committed to enhancing bilateral relations between Nigeria and France. Its core objectives revolve around the facilitation of trade, investments, infrastructural development, job creation, and cultural integration between the two nations.

Since its establishment in June 2021 under the auspices of President Emmanuel Macron, the FNBC has diligently utilised its member network to champion investments across key business sectors, fostering cultural understanding and driving economic growth between Nigeria and France. Notably, it has catalysed Nigerian businesses’ ventures into investment opportunities within France.

Comprising 13 distinguished members, the Council boasts prominent figures including Aigboje Aig-Imoukhuede (President), Abdul Samad Rabiu, Gilbert Chagoury, Mike Adenuga, Aliko Dangote, Jim Ovia, Tony Elumelu, and John Coumantaros. Additionally, Kola Karim, Leo Stan Ekeh, Daisy Danjuma, Gbenga Agboola, and Jean Haas serve as integral members, with Jean Haas holding the position of Secretary.

Aig-Imoukhuede’s appointment follows the passing of Herbert Wigwe, the Council’s former President, in February 2024.

Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.

The Choose France Summit is an annual gathering that convenes business magnates, investors, and governmental dignitaries to explore investment prospects within France. The highlight of the Summit was the Presidential Dinner, characterised by high-level engagements and mutual commitments between participating parties.

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ACCESS BANK (SL) LTD STRENGTHENS LEADERSHIP TEAM WITH KEY BOARD APPOINTMENTS, NAMES NEW CHAIRMAN

Published

5 days ago

on

May 13, 2024

By

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Bank Sierra Leone Ltd (‘Access Bank (SL) Ltd’) has announced the appointment of new executives to its Board of Directors (‘the Board’), further strengthening its leadership team and advancing the implementation of its growth and transformation strategy.

These appointments also reflect the Bank’s commitment to fostering growth and development while maintaining the highest standards of governance and stewardship.

Joining the Board as Non-Executive Directors are Maurice Nathaniel Cole, Nsikak N. Usoro, Michala Mackay, Ibrahim Khalil Lamin, and Kolawole Augustine Ajimoko.

The appointees boast a wealth of expertise from diverse sectors, including banking, telecommunications, corporate governance, compliance, and finance. Their combined experience and vision will contribute to shaping the future trajectory of Access Bank (SL) Ltd.

Cole will serve as Chairman, following the exit of Alice Marie Onomake and will bring his experience to the fore as Access Bank (SL) Ltd works to consolidate its market position and deliver value for all its stakeholders.

“We are thrilled to welcome our new executives to Access Bank (SL) Ltd,” said Ganiyu Sanni, Country Managing Director, Access Bank Sierra Leone Ltd. “Their leadership and vision will be invaluable as we navigate through challenges and pursue sustained success. We extend our gratitude to outgoing Chairman, Alice Marie Onomake, and Non-Executive Director, Aminata B. Dumbuya, for their dedicated service and contributions to the Bank.”

Access Bank (SL) Ltd remains committed to excellence, transparency, and accountability as it embarks on this exciting new chapter. The Bank looks forward to leveraging the collective expertise of its leadership team to drive innovation, foster growth, and create lasting impact for its customers and communities.

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