'Raising funds at the capital market won’t save banks'

By Bankole Makinde - 13.01.2008

GROUP Chairman of Global Fleet of Companies, Barrister Jimoh Ibrahim has raised alarm that many banks would soon collapse in the economy.

He said the development would stem from the rate at which the banks rush to the capital market to raise funds through the now popular Initial Public Offer (IPO).

According to him, the banks have built their vision on the short road instead of the long and thorny road and so would not be able to manage the funds raised through the public offers.

The Group Managing Director of NICON Group of Companies, stated this at this year’s National Conference of the African Newspapers of Nigeria (ANN) Plc, which held at Jogor Centre, Ibadan.

He admonished employees to be loyal to their companies and strive to love their jobs compulsorily.

To be successful financially, Barrister Ibrahim said 25 per cent of one’s income should be invested on landed properties or savings towards such; 25 per cent in stocks (floating assets); 25 per cent as cash in bank while the remaining should be on waste (food and other items).