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Don says recapitalisation
fails to address banking problems
A university don, Dr Abubakar Momoh, said in Lagos that the recapitalisation
exercise did not address the basic problems of the banking industry.
Momoh, of the Lagos State University, Ojo, made the observation while
speaking on ``Mergers and Acquisitions in the Labour Industry:
Implications and Challenges for the Trade Unions,'' at the 10th annual Dr
M.E. Kolagbodi memorial lecture.
He said the problems of the banking sector were generally lack of
efficiency, coupled with their inability and unwillingness to finance small
and medium scale enterprises.
The don noted that the banks were generally willing to go into mortgage
banking, as well as render support to manufacturers with low-interest loans.
``The main goal of the Nigerian banking reforms was to create stability in
the nation's banking sector,'' he added.
Momoh said the reason for mergers and acquisitions bothered on the lack of
competitiveness and backwardness in the technology used by a company, among
other factors.
He noted that merged companies were generally involved in the downsizing and
rationalisation of workers, saying ``it tends to reduce competition and
employment opportunities for workers''.
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SATURDAY, NOVEMBER 4 2006