Subscribe free to our newsletters via your
. Earth Science News .

Subscribe free to our newsletters via your

Reformers gain a toehold in Nigerian corruption fight

More than 800 homeless after Central African rain
Bangui (AFP) Aug 7, 2010 - More than 800 people lost their homes and are in a "precarious" situation after torrential rain and flooding in Central African Republic, the Red Cross said Saturday. The worst-hit area was the Nanga Boguila region 400 kilometres (250 miles) north of capital Bangui. "Between July 11 and August 7, a total of 255 houses were partially or totally destroyed, leaving at least 811 people without shelter," said the Central African Red Cross Society. "The victims lack blankets, tarpaulins and food," said the organisation, adding that an appeal had been launched for aid. "The situation for these people is precarious, because they don't have any shelter and the rain is not stopping," it said.

Neighbouring Chad has launched an appeal for international aid after several thousand people lost their homes in the rain, but the government has not given any precise figures. In Niger, more than 5,500 people have been affected by floods in the capital Niamey since Thursday, its governor Colonel Soumana Djibo said Saturday. "More than 500 hectares of rice and vegetable fields have been destroyed," Djibo said in a statement, calling for people in flooded areas to head to shelter camps. Meanwhile, the Niger River, the third biggest in Africa, was at its highest level since 1929, the Niger Basin Authority (NBA) said. The river, which sustains 110 million people in nine west African states, was flowing at 1,990 cubic metres per second (70,000 cubic feet per second), the first time it had hit this level since 1929, NBA expert Abdou Gero said on Niger's public television. This was due to "exceptional precipitation" in several countries, the expert said.
by Staff Writers
Lagos (AFP) Aug 8, 2010
The tale of Nigeria's banking crisis gets complicated, as matters related to money in this country often do, but it may be best to start with the private jets.

Banks essentially loaning money to themselves used the cash for all sorts of alleged shady deals, including buying private jets or manipulating stock prices -- and that was only part of the problem.

"The banks did not fail," Central Bank Governor Lamido Sanusi said in a strikingly blunt speech earlier this year. "They were destroyed and brought to their knees by acts committed by identifiable people."

Nigeria is seeking to emerge from a financial crisis that boiled over last year by taking actions that may come as a surprise to those weary of hearing about the country's crippling corruption.

Officials are in the process of setting up a "bad bank" to soak up billions of dollars in deadbeat loans and have cleaned house at financial institutions suspected of dubious practices.

The bourse regulator announced last week that it was firing the head of the stock exchange after allegations of financial mismanagement in a move seen by some as another victory for reformers.

Despite all of that, observers say massive work clearly remains to set the oil-rich country on a path that could finally allow it to exploit its huge potential.

There is also the question of whether financial reformers are being allowed to push ahead because elections will be held early next year. President Goodluck Jonathan, who has pledged to reduce corruption, is expected to run.

Victor Ndukauba, research director at Afrinvest financial firm in Lagos, said the removal of the head of the stock exchange could be seen as "reformers getting the upper hand."

He also said the bank changes have been a positive step, but officials should take their efforts further.

"What made banks go down that road in the first place? Corporate governance and risk management are extremely crucial," Ndukauba said. "Banks can't be left to one individual because he can run the company into the ground."

The factors that led to the banking crisis in Africa's most populous nation are similar to those that caused the global financial crisis -- but with a twist.

Flat-out corruption, volatile oil prices and inflated banking stocks combined with the kinds of questionable loans that became standard practice in many countries.

Analysts point to the consolidation of the country's banks that began in 2004 as the event that unintentionally set the whole thing in motion.

The government decided that banks needed to be larger to adequately finance the economy. That translated into rules requiring at least 25 billion naira (166 million dollars, 125 million euros) in capital.

As a result, the number of banks eventually shrank from 89 to 24. They were bigger, but not necessarily better.

In certain cases, huge capital increases were controlled by bank executives who had never dealt with such sums before.

One of the problems was the purchasing of private jets and estates, Sanusi has said. Banks also began handing out large numbers of dubious loans for real estate and stock purchases.

"Millions of credits were granted to buy stocks because of rising prices," financial consultant Abolaji Oladimeji Odumesi said.

"The bubble began to burst because the prices were not realistic. They were not market-driven but being manipulated by fraudulent dealers and brokers."

Sanusi, a bow-tie wearing intellectual who also studied Islamic law, took over as central bank governor in June 2009.

A month later, he began what some call the "Sanusi tsunami."

Executives from eight banks were removed from their posts and a bailout of 600 billion naira was announced. A list of people have been charged in connection with the alleged banking corruption.

To continue with the clean up, the "bad bank" was signed into law a couple weeks ago.

One banker in Lagos, Sunday Adeola, called the mechanism "the messiah the financial sector has been waiting for." Others, however, said it was a good start.

"It's a means to an end -- it's not an end in itself," said Afrinvest researcher Babatunde Obaniyi.

The same might be said for the moves at the stock exchange, with more surprises possibly on the way.

In announcing the firing of its director general last week, regulators also pledged an independent investigation, citing "the gravity of the allegations around financial mismanagement of the exchange."

Share This Article With Planet Earth DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook

Related Links
Africa News - Resources, Health, Food

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Mozambican-U.S. joint military exercise
Maputo, Mozambique (UPI) Aug 4, 2010
Mozambique and the United States are staging joint Shared Accord Exercises 2010 military exercise. The Shared Accord Exercises 2010 is being conducted in Mozambique's southern Moamba province district, Agencia de Informacao de Mocambique reported Tuesday. A Mozambique Defense Ministry news release from Mozambique's Defense Ministry stated that Shared Accord Exercises will run Aug ... read more

China gold mine fire kills 16 workers

Japanese rescue-bot can sniff out disaster survivors

Flood-triggered landslide in China leaves 21 missing

Haiti's homeless on the move again as hurricanes loom

Google phones unseat BlackBerry as top sellers in US

Acoustic Tests On New Glonass-K Satellite Completed

China Leads In Outer Space Pollution

MetOp-B Module Passes Crucial Vacuum Test

Obama to serve Gulf seafood at birthday bash: aide

Well kill doesn't mask grim reality for Gulf fishermen

Workers in China rush to restore water to 330,000 people

Pacific islands want louder voice on climate

'City-sized' ice island breaks off glacier

Ice drilling could foretell climate

Ice-Free Arctic Ocean May Not Be Of Much Use In Soaking Up Carbon Dioxide

Best Hope For Saving Arctic Sea Ice Is Cutting Soot Emissions

Alarm over Russia plan to destroy crop collection

Putin sows controversy with Russia grain ban

Russia bans grain exports due to drought

Rebuilding Flood Plains, Agriculture, Economy

Taiwan aborigines protest resettlement after deadly typhoon

North Korea floods destroy bridges, railways: state media

Pakistan PM calls for help as fresh rains hamper flood aid

Taiwan remembers 700 killed on typhoon anniversary

Reformers gain a toehold in Nigerian corruption fight

Mozambican-U.S. joint military exercise

More Somalis arrive from Saudi Arabia

GBissau records veterans in demobilisation drive

Scientists Unravel Human-Ecosystem Interactions

Walker's World: Sarkozy gets tough

Massive Gains For Women's Employment In India

Divers Plumb The Mysteries Of Sacred Maya Pools

The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement