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Banks Contributed In Destroying Nigeria’s Economy, Says Yuguda

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A former governor of Bauchi State, Isa Yuguda, has accused banks of being contributors to the destruction of the Nigerian economy.

Yuguda, who was a guest on Channels Television’s Sunrise Daily on Thursday, said most of the bankers in Nigeria do not care about the country but about making money with their institutions to live abroad with their families.

“From my own experience banking industry in year 2000 to join the cabinet of Chief Obasanjo. So, my experience then, banks have really contributed in no small way in destroying the economy of Nigeria because for some of our colleagues it is not about Nigeria.

“How can they use their institution to make money and live outside Nigeria with their families and then continue milking Nigeria through the banks?” Yuguda queried.

Banks have come under attack in the face of the recent economic hardship that has hit the country, with many pointing accusing fingers at banks over the free fall of naira.

Yuguda further alleged that the banks engage in illegal transactions that even the regulators find difficult to unravel.

“There are so many ways to make illegal transactions that even the regulators will hardly notice it but financing of the real sector. If you look at the balance sheet of banks, the real sector financing, maybe it is just paper intrigues, if you do a forensic audit, you will discover that they just want to satisfy the regulators.

“They are basically trading in money, trading in FX, almost all the banks and that is why I am happy that the central bank governor has taken a position to say all those open positions where bank CEOs amass dollars in their balance sheets to the extent that they deny the markets dollars. I must say that banks must be professional,” he said.

Yuguda also lamented that the central bank printed money to finance consumption, recurrent expenditure, saying that it is not done anywhere in the world. He said the economy managers were careless to have done that.

Also a former Minister of State, Transport and Aviation, Yuguda was responding to questions on the current economic hardship in Nigeria which has reduced the purchasing power of many citizens.

With prices of commodities on steady increase, many Nigerians have in the last few weeks taken to the streets in some states to protest the harsh living conditions occasioned by the removal of petrol subsidy, forex crisis, amongst others.

The protests have occurred in Ogun, Oyo, Kano, Niger and some parts of the country and many fear that it may escalate if the situation is not brought under control by the government.

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