Nigerian banks are healthy, sound - CBN, NDIC

From Lanre Oyetade and Gbola Subair - 01.07.2009

The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have given a clean bill of health to all the 24 banks operating in the country

The apex bank’s acting Head of Corporate Affairs, Mallam Mohammed Anbdullahi, while reacting to the report in the latest edition of African Report, an influential weekly published by the Paris-based group, Jeune Afrique, disclosed that one needed to read the full report in the weekly magazine to be able to have an understanding of the analysis made in the report.

Describing the report, which said only four Nigerian banks are strong, as a mischief, Abdullahi said the report only analysed the categories of bank in Nigeria.

He described the report as nonsence, asking rhethorically whether it was possible to describe banks in the satisfactory group as weak. Noting that banks were bound to have categories, Mallam Abdullahi said there would always be first class banks, while others would be in other categories, stressing that this did not mean that banks in other categories were weak.

In its reaction, the Head, Communications and Public Affair Unit of NDIC, Mallam Birchi Sule, said the public should ignore the report. He said, as far as the NDIC was concerned, “we don’t know the criteria used to rate the banks.”

Also, the former national president, Association of National Accountants of Nigeria (ANAN), Dr. Samuel Nzekwe, averred that the report was a calculated attempt to put the industry in disarray, while urging the Federal Government and the regulators, including the CBN NDIC, to come forward and douse the tension.

Nzekwe said the source of the report must be verified to ascertain the authenticity, stressing that the industry was too sensitive to be toyed with.

“The criteria used by the magazine should be ascertained. It is not enough to state that a particular bank is safe or distressed. You cannot stay in Paris and write what you like. Such reports are counter-productive, not only to the sector but also to the economy,” he said.