Governor Soludo reflects on struggles during banking sector consolidation

• Charles Soludo, Governor of Anambra state, highlighted that Nigeria's banking sector consolidation was a risky endeavour
• During the launch of 'Power of One Man', authored by Ray Echebiri, Soludo reflected on his tenure as CBN Governor
• President Olusegun Obasanjo emphasized the need for collaboration among economic players and government at all levels

Lagos state - Charles Soludo, the governor of Anambra, remarked that the consolidation of Nigeria's banking sector has permanently altered the system, though the process itself was a perilous battle.

Soludo made these comments on Saturday, July 6, during the launch event of a book titled 'Power of One Man: How the Soludo-Engineered Consolidation Transformed Nigerian Banks to Global Players'.

Anambra state governor, Soludo speaks on challenges face during the consolidation of banks Photo credit: @Naijastories
Source: Twitter

The book, authored by Ray Echebiri, CEO of the Centre for Financial Journalism and launched in Lagos, recounts Soludo's tenure as Governor of the Central Bank of Nigeria (CBN) from 2004 to 2009.

During this period, Soludo initiated the consolidation policy aimed at restructuring the Nigerian banking system., TheCable reported.

Consolidation, as defined by the CBN, involves reducing the number of banks and other deposit-taking institutions while increasing the size and concentration of the remaining entities in the sector.

Typically, this process includes mergers and acquisitions among banks, resulting in fewer but larger financial institutions.

Soludo: Consolidation process was risky

Reflecting on the transformation of the banking sector, Soludo described the consolidation effort as a risky "gamble and war".

He revealed that due to threats and attacks related to the restructuring policy, his family had to go into exile, as reported by Vanguard.

Despite the challenges, Soludo emphasized that the consolidation exercise represented a significant revolution that permanently transformed the banking industry in Nigeria.

He said:

"Firstly, I want to clarify that I haven't read the book. I extend my thanks to the author and express my gratitude to my incredible team."I also appreciate the overwhelming support from Nigerian stakeholders during what felt like a revolutionary period. Today, we celebrate Nigeria's potential. The revolution permanently transformed Nigeria's banking system.

Former Nigerian President Olusegun Obasanjo, represented by Donald Duke, former Governor of Cross River, emphasized the need for collaboration among economic players and government at all levels to enhance the country's current situation.

Obasanjo stressed the crucial role of government in economic improvement.

Soludo warns Tinubu against unsustainable minimum wage

In another report, the governor of Anambra state, Chukwuma Soludo, has expressed his empathy for President Tinubu, who is faced with the difficult situation of deciding what minimum wage the Nigeria's economy can afford.

Legit.ng reported that Soludo warned the president against approving an unsustainable wage that would worsen the country's situation, saying that Tinubu would later bear the brunt.

Source: Legit.ng