Mrs. Elizabeth Adegite

The President, Institute of Chartered Accountants of Nigeria (ICAN), Mrs. Elizabeth Adegite, has drummed-up support for the Central Bank of Nigeria’s (CBN’s) drive allowing foreign ownership of some Nigerian banks.

Speaking with journalists in Abuja yesterday , Mrs. Adegite said since Nigerian banks have branches in other countries, there was nothing wrong in allowing foreigners to own or buy into the banks, especially if they have genuine intention.

She said the law of demand and supply should be allowed to take its course since the banking sector is an open market, adding that Nigeria must refrain from shutting out foreigners from business in the name of indigenisation

Mrs. Adegite said that opening the banking environment to foreign participators would lift Nigeria in the ongoing globalisation process.

Her words: "But again, you know what we call in the parlance of economics demand and supply must come to play. It is a fair and open market; so to the extent that our banks are going round saying they are global banks, going to Ghana, Cote D’Ivoire, you cannot exclude the people also to own something.

"I believe we all know the answer. What we are saying at the end of the day is, business is business. He who has the funds to purchase provided he comes with clean hands should be allowed to purchase so that the organisation can move on.

"That’s what NEPAD is saying. That is why you see Obama, Clinton coming here. It is part of the openness. So we too cannot afford not to open up our own boarders for trade. Nigeria is a big country and in this country, we have a lot of resources, even we do business and go out there, it is not like shutting the doors and doing indigenisation of the past that will move Nigeria forward in the global world we live."

Adegite however cautions that the apex bank must be wary of allowing too much foreign investment in the banks for security reasons.

She said the ownership of a bank is derived from purchase but the utmost should be the interest of the country. This, she said makes it expedient for Nigeria to first and foremost seek investment in the banks from within.

The ICAN President said: "Ownership of any organisation is very clear. You purchase and then you get ownership. You derive your power from the purchase that you have. And so if the sale is to be done, we will believe that in the interest of our country, first and foremost we will look from within.

" I think this is one of the reasons every nation takes care that it does not put all that it has into foreign hands, otherwise it becomes a risk for the nation.

So I believe you and I and everyone, even including the Governor of the Central Bank, he is very nationalistic, and I am sure his view is first and foremost for Nigeria ."

The ICAN boss stated that if any bank fails, the management should be held responsible, not the auditors. The auditors will always indicate whether they have complied with the guidelines in their report.