How I was threatened, forced to send my family on exile during 2005 banking sector consolidation – Gov Soludo
Governor Charles Soludo of Anambra State has recounted his experience spearheading the consolidation policy of the Nigerian banking system, describing it as a dangerous war.
Soludo, who served as the governor of the Central Bank of Nigeria (CBN) from 2004 to 2009, detailed his challenges during this transformative period.
The consolidation policy aimed to reduce the number of banks and other deposit-taking institutions while increasing the size and concentration of the consolidated entities in the sector. This often involved mergers and acquisitions, resulting in fewer but larger and more robust institutions.
Speaking at the launch of a book titled “Power of One Man: How the Soludo-Engineered Consolidation Transformed Nigerian Banks to Global Players,” Soludo shared his harrowing experiences, including threats and attacks that led his family to exile. Soludo explained how he received 19 threatening messages, which forced him to send his children into exile abroad after attempts were made to kidnap them in their school in Kwara State.
Soludo said, “Let me start with a disclaimer: I have not read the book. My gratitude goes to the author of this book, and I appreciate my incredible team. I also thank the Nigerian stakeholders for their massive support because it was like a revolution; today, we are celebrating the possibility of Nigeria.”
Soludo said: “We went through hell, and three-quarters of my hair disappeared during that period. It was nothing short of a revolution.
“The organised labour, NLC, the Manufacturers Association of Nigeria, NACCIMA, bank’s labour union – all rose against it. All kinds of things were thrown into that war.
“I remember those days when we spent weeks here in Lagos trying to midwife mergers among strange bedfellows.
“This was the disruptive change, the revolution that has changed the Nigerian banking and financial system forever.
“The major problem of the Nigerian banks was that they needed to capitalise to be fit for purpose. You cannot be talking about private sector-led development without a financial system that can finance the private sector. That for me was like a slogan.
“So, we had a decision to make: Either to go on patching or decide that this house has cracked down to its foundation and needs to pull it down and start from scratch. That was the decision that we faced. We decided that this house had to be pulled down and built from the ground.
“When we raised the capital base from an equivalent of $15 million to the equivalent of $200 million, there was a screaming headline that declared it impossible.
“Some bankers took advertorials declaring it impossible. And the war began,” he explained.
He highlighted the lasting impact of the consolidation policy on the Nigerian banking system, noting, “The revolution changed the Nigerian banking system forever. As a leader, you must be self-sacrificing and ready to pay the price to avoid personal interest.”
Soludo emphasized the policy’s success by pointing to now-giant institutions like Access Bank and Standard Trust Bank. He concluded, “The major message today is the revolution for the banks themselves, who are now giants. What is stopping and limiting us from developing is our mindset. If we can dream it, we will achieve it.”
