Niger Delta Militant Group writes Buhari on Banks Shake up

A Niger Delta militant group identified as Iduwn Volunteers Force (IVF) has written a letter to President Muhammadu Buhari urging him to caution the CBN governor, Mr Godwin Emefiele hours after the CBN announced changes on the management of Skye Bank.

The militants allege that Monday’s shake-up at Skye Bank was a veiled attempt by Emefiele to forcefully wind up certain banks in the country, including Skye Bank – whose management was sacked 6 months before the expiration of this directive.

Vanguard reports that the militant group, in a statement in Lagos by its Commander Johnson Biboye, also asked President Buhari to prevail on the CBN governor to withdraw a letter addressed to 11 banks, including Skye Bank Plc, compelling them to bring ‘insider related credits’ before December 31, describing it as an anti-people’s policy.

The militants claimed the new policy by Emefiele will throw the country into economic instability should the apex bank be allowed to go ahead with its planned directive as the plan was nothing but to take-over the 11 banks.

The CBN had in a letter dated January 22 by its Director of Banking Supervision, Benjamin Fakunle, asked the banks to bring 10 per cent of their paid-up capital per director before December 31.

The letter reads:

“CBN has granted an extension of time till December 31, 2016 to enable you bring your insider related credits within the stipulated regulatory maximum of 10 percent of your Paid-up Capital per director including his/her related parties and 60 percent Paid-up Capital for total related credits in line with our circular BSD/9/2004 on Large Exposures and Connected Lending. You are however required to provide quarterly report/update on the progress made.”

A portion of the letter signed by the leadership of the militant group, read:

“It is very important to let you know of the ongoing harassment/intimidation of Chairmen of banks including their Managing Directors and Chief Executives.

“This, Your Excellency, should be aware, is a well-orchestrated plot by enemies of your government to use the Central Bank Governor, Mr Godwin Emefiele, to systematically collapse the nation’s economy, so that global watchers could make mockery of your government and finally turn Nigeria to a laughing stock locally and internationally.”