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UBA, First Bank CEOs quit NESG board over criticism of CBN policies

 


The chief executive officers of three banks have resigned from the board of the Nigerian Economic Summit Group.


The CEOs, Kennedy Uzoka of the United Bank for Africa (UBA); Abubakar Suleiman of Sterling Bank and Adesola Adeduntan of First Bank Plc, were reported to have resigned from the board in protest of the NESG’s criticisms of the Central Bank of Nigeria’s interventions.

 

Asue Ighodalo, the chairman of NESG, is also the chairman of Sterling Bank.

 

TheCable reports that a source at the NESG t on Thursday that the issues have not been finalised and that there has been no discord in the board whatsoever.


In a statement on Monday, the NESG had expressed concerns about how the CBN “carried on the business of foreign exchange transactions, loan disbursements (intervention funds) and price fixings without appropriate policy clarity”.

 

It also said the distortions in the liquidity and interest rate management is causing a grave disadvantage to domestic investors and pensioners.

 

The NESG had also urged the federal government to overhaul the management and support being given to the agricultural sector saying a huge gap exists between food production and requirement of Nigerians despite the huge sums disbursed by the CBN under its intervention programmes.


In response, the CBN had said its agricultural intervention programmes averted a major food crisis during the thick of the lockdown.

 

According to the CBN, 103, 189 beneficiaries of its development finance activities had received N59.12 billion through the NIRSAL Microfinance Bank as of August 2020.

 

The apex bank also refuted claims that its lending process did not have a proper framework explaining that participating financial institutions carry out due diligence of applicants following which an additional assessment process is embarked upon by the CBN before disbursements are provided.

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