By Nik Ogbulie
The bank directors association of Nigeria (BDAN) , has distinguished itself from rent-seekers marauding as sympathisers of the Federal government’s chequered economic situation. Various notable individuals, some of them shareholders of banks, who quickly jumped to applaud federal government’s irresponsible imposition of a huge tax on the profit of banks as reported in the 2023 financial year may have gotten the responses of their lives. Justifying government’s position, those Nigerians indicated that the action becomes necessary based on the huge challenges faced by the one year old Tinubu administration.
Early in the week, the Mustapha Chike Obi-led association roared and shutdown all those that offered support to government’s position,indicating that the taxation was uncalled for and an abuse of procedures in handling issues that involve a large segment of the operators and investors in the failling economy.
Chike Obi noted that the issue was not discussed at any level of business partnership and the banks were never consulted at any time before the very rash decision was taken. The decision could even be regarded as very irresponsible considering the on-going banking sector recapitalisation and some indication of technical insolvency in the industry.
Indications in the industry are rife that the tax was an idea that indicates floppy leadership decision that does not consider the status quo ante in the financial sector.
It is however unbelievable that the CBN was not contacted before such a decision was taken or that it was consulted but could not defend the banks that have been variously submerged in so many acidious rules and guidelines as the battle over so many monetary policy issues raged.
This obnoxious fiscal policy issue tends to create the impression that the present federal government’s leadership is replete with grinding spectrum of imunities which tend to undermine the integrity of many institutions that should be the wings on which emergencies and exigencies should be flown to the appropriate channels. This becomes so worrisome in an economy that must sequence its activities to avoid unnecessary bumps.
What gets a lot of Nigerians unstable in this kind of situation is that the federal government has serially exhibited serious doses of insensitivities that are capable to boomerang existing developments and policies that have been set up to address issues arising from many economic activities like profit or loss.
The response of BDAN expresses the reason why institutions like the banking Industry must be led by thorough-bred professionals who possess the clarity and potency to call such bluffs and continue to defend their actions in ways and manners that hands-off the impunity of leaders who always employ the instrumentality of bluffs and rude shocks to drive into the sincere orgasm of proper planning and logics , applying bottled up illogicalities.
As a matter of fact, profit is profit; it defines the efficiency deployed to business deliveries and must be extolled and not derided. If government feels badly about profits, they should sponsor a bill to that effect so that it will be seen as a decision of all and not a group of politicians who are not happy with gains made by people who deployed their resources for general good.
It sounds so hopeless that a country that is calling for investments into banks are at the same time sending very wrong signals to the same target investors at the same time it is cap-in-hand asking for new investments in the industry.
If BDAN is led by investors in the industry who want to use their positions to woe government and politicians a huge trust deficit would have been the lot of the industry now and government would hold on to such support to run down yet another sector. This offers bank shareholder groups and associations and those of consumer groups the audacity to always go for very responsible professionals who will not rubbish their hard work for flakes of political recognition. This becomes so disturbing based on the expectations that banks should grow even bigger because it is the only visible sector that has put a hedge on the sliding employment rate in the economy.
As a matter of fact, Nigerians may begin to suspect the adequacy of engaging financial consultants as controllers of its finance ministry and allied institutions. If the banking Industry must wake up in the morning to meet such a huge tax bills on their desks, what message is government sending to the institution it calls a major driver of its policies?
This development sounds much like the “Subsidy is gone” grandiocity, and could cause more damage than could be imagined. Government’s in Nigeria have been bullies but they have just met a proper leader who believes that his ox must not be gored. For an economy to survive, banking must be everything, not politics!
But any such policy that rubbishes the fruit of ones hard work must have arrived from hail.
