There is palpable unease in the nation’s economy as stakeholders await the outcome of the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation’s (NDIC) audit reports on the last batch of the 14 banks yet to know their fate.
BusinessDay gathered last night that the development has brought about value-erosion in the banks being audited and is consequently causing disquiet in the entire economy.Indeed, a more disturbing aspect of the situation, fresh investigations reveal, is that at least, five chief executives of the banks may be removed as was the case of Intercontinental Bank, Union Bank, Afribank, Oceanic and Union Bank, any moment from now; being the outcome of the special audit conducted by CBN and NDIC.
For instance, it was further learnt yesterday that the painstaking decision, which will serve as a soft-landing measure for the chief executives who have been having running battles with the security agencies in the last few days, may take place immediately after the release of the audit report slated for first week of October. Some of them had their passports seized and later released, raising further doubts about the financial health of the institutions they run.
However, not oblivious of the negative consequences of the last action when five chief executives were sacked in one fell swoop, the current action will be through the various boards of the banks, so as to provide soft landing for the embattled chief executives.
 “This may be the logical conclusion. But this time, it is expected that the various boards of the banks will be used to execute their removal. I am not sure of the exact date, but it’s likely that after the meeting of the CBN board to deliberate on the report and other topical issues, the results might be announced next week Friday and thereafter, the banks may be advised to execute the removal plan, possibly the same day,†a source confided in Business Day yesterday
Again, it was gathered that the resort to the bank boards for the execution of the programme may have generated heated debate between the CBN and NDIC, even though reason was allowed to prevail at the end of the day.
It was also revealed last night that the committee of governors of the CBN would meet next week, while the meeting of the board is expected to come up first week of October. Then, a proposal to restructure the apex bank, the financial stability and the audited report, will form the plank of decisions to be reached at the meeting. Even at that, a new department, Risk Management is expected to be created.
While four of the banks had serious infractions noticed in their books, one was particularly carpeted over issues bordering on corporate governance.Â