Injustice is Served

LAGOS -- Corruption has once again infiltrated the political ranks of Africa. In a move widely condemned by the World Trade Foundation (WTF) and numerous similar organizations, the Nigerian government has recently cracked down on the backbone of its financial and economic systems.

Under the guise of corruption investigations, the government has frozen all shares belonging to five of the nation's largest banks. Earlier, the government had granted the five banks a total of 400 billion naira ($2.6 billion) in bail-out loans due to lack of cash reserves. However, the banks continued to run into debt due to bad loans eventually totalling 1.14 trillion naira between the five of them.

The government used this outcome as a means of scapegoating the nation's banks with the blame for the crisis on the hard-hit Nigerian economy. The EFCC, Nigeria's governmental commission against financial crimes, is reporting that one senior bank executive has already been charged with corruption crimes and that "other executives will appear in court later."

The WTF calls for restraint on the government's side, recognizing these executives' innocence and good intentions. In stressful times in the financial sector, little hope is left for the banks and the very least these executives can do is write off a couple of under-the-table loans to "individuals or companies using fictitious names" (naturally, without approval from the board). In that way, they can at the very least ensure the welfare of their family and friends.

Related reading: http://news.bbc.co.uk/2/hi/business/8230692.stm