Remember this story about the Nigerian central bank taking over five Nigerian banks? Well, it seems that a result of that has been a sort of credit crunch in the country. From the BBC:
Lagos-based manufacturing firm, supplying cables to Nigeria’s fledgling national grid.
With more than 500 skilled staff, it is exactly the kind of business that trade experts say Nigeria needs if it is to diversify away from oil production and create a more mixed economy.
Using borrowed cash, the firm moved to bigger premises in August, but just three weeks later received some devastating news from its two banks about its loan facility.
“The bank just told us pretty much, ‘Look, we have to put a hold on this at least till next month, or the month after or until things die down,'” says David Onefowoken, director of Coleman Wires and Cables.
“The second one might slash [the loan] by half.
“A lot of these banks that were stopping these loans had actually helped us out before, to get up and running.”
The reason?
A banking crisis entirely divorced from the global credit crunch. Continue reading.
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I have been and remain of the opinion that we are not fully apprised of the consequences of ‘Sanusi’s’ actions. Well, these things always tend to unravel themselves eventually.
I have been and remain of the opinion that we are not fully apprised of the consequences of ‘Sanusi’s’ actions. Well, these things always tend to unravel themselves eventually.