I lost money in failed banks – Soludo

Soji-Eze Fagbemi and Taiwo Adisa, Abuja - 06.02.2008

Governor of Central Bank of Nigeria (CBN), Professor Chukwuma Soludo, told the Senate Committee on Banking, Insurance and other Financial Institutions headed by Senator Nkechi Nwaogu on Tuesday that he personally lost huge sums of money to three of the banks that failed in 2005.

The governor, who appeared before the committee in an interactive session in the National Assembly on Tuesday, however, assured Nigerians that investments in the sector were safe.

Besides, Soludo asked Nigerians to buy shares and invest in the banking sector through the public offers, saying that the present banking sector was robust and safe for such investments.

Soludo, who did not mention the amount he lost and the identity of the banks involved, stressed that he would not preside over institutions where Nigerians would lose their money again.

While answering questions from members of the committee, Professor Soludo said “the banking era we are getting into is quite different from the one we had before. I lost my money in three banks and I knew the pains. I have experienced it and know how it is. So we are not going to preside over a sector where akara sellers will put their money and will not be able to get it. Given the potential of the economy and their investments, we have not seen anything in the banking sector yet.”