By: Mr. Feyi Oluwaremi (B.Sc, MBA, ACA)
Recent reforms carried out by Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN), in the banking industry appear desirable. The CBN aims at ensuring the stability and soundness of Nigeria’s banking industry within the shortest possible time. However, the unintended negative effects of these present reforms of the banking sector on national economy are awful. The CBN Governor swept away chief executives of five commercial banks in Nigeria in one fell swoop. The decision took many Nigerians by surprise. At the same time, it drew diverse reactions depending on which side one stands. Whereas some people applauded the action as belated but necessary to bring sanity to the Nigerian banking sector, others chastised the apex bank boss for taking a decision that would turn round to hurt not only the banks, but the entire Nigerian economy. Sadly, in spite of the apparent lofty intentions of the reputable risk manager, there are indications that unintended negative effects of the CBN action have begun to take their toll on the banks, the real sector, Nigerians and the entire economy.
From the empirical observation, employees of the various sectors of the economy are bearing the brunt of these reforms going on. This is evident by: high level of retrenchment, salary cuts, daily living in fear of losing one’s job, employee coercion for high performance in the face of hostile and polluted marketing environment, harassment and intimidation from the employers as a result of policy confusion, etc.
In the light of this, this paper reviews the Change Strategies which must be put in place, largely by the employees, towards building up a high corporate culture ( -employees behaviours, attitudes, capabilities and commitment ) if they want to maintain their relevance and keep their jobs in the present reality.
The direction of my discussion will be through the headings itemized hereafter:
1.CURRENT BANK CRISIS AND CBN’s INTERVENTIONS
2.UNINTENDED EFFECTS OF CBN’s REFORMS
3.EMPLOYERS IN THE HARD TIMES
4.CURRENT BANKING REFORMS AS A STRESSOR IN THE WORK-PLACE
5.EMPLOYEES- BEARING THE BRUNT
6.EMPLOYEES- CRACKING THE CODE OF CHANGE
Signed: OLUWAREMI FEYI (08033995219)
CURRENT BANK CRISIS AND CBN’s INTERVENTIONS
In June 2009, Nigerian Central Bank Governor Sanusi Lamido Sanusi took office. He certainly had a intuitive feeling about how deeply distressed his nation's banking sector was. Foreign risk management analysts had been issuing warnings about Nigerian banks and their toxic assets since January, 2009 and oil prices were down — always a harbinger of hard times coming for Africa's top oil producer. The current bank crisis emanated from greed and destructive capitalism of infinitesimal populace orchestrated by unguided bank reform of the then CBN Governor, Professor Charle Soludo. This position is succinctly narrated by the analysts and scholars as follows:
According to Nigerian business journalist, Dayo Coker(2010): “It was simply greed and destructive capitalism.” He continued: “There was a chance to make millions and people seized it. The regulators failed the people.” Long before they failed the people, however, Nigeria's regulators inspired them with a plan to overhaul their convoluted banking system, and open Nigerian finance to the world. In 2005, then-Central Bank Governor Chukwuma Soludo whittled down Nigeria's 89 small-scale banks to a handy 25. The new banks born of Soludo's consolidation were bigger, broader in scope and had much more credit to lend — but fewer checks on how to lend it. That's where the problems began. “The people trying to do that process didn't realize they were creating mammoth institutions without really taking the time to double check the new freedoms offered to those in charge,” said economist Adama...