August 19, 2009

The chicken has come home to roost’. This is the common statement heard from commentators following the recent bombshell from CBN over the financial health or otherwise of five banks. For a while, the industry has been awash with rumors of ill-health, unfair de-marketing practices and the need to comprehensively sanitize the system.

While some informed commentators argue that it is a welcome development that is long overdue, it is my modest opinion that perhaps there are more equally serious issues to deal with beyond the change of guards at the top of these institutions. It is the single bold step that signifies that proactive risk management has taken centre stage in the Nigerian banking industry.