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Nigerian banks: Resilient despite economic meltdown

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At the beginning of the 2008 financial crisis, former governor of the Central Bank of Nigeria (CBN) Professor Charles Soludo honoured invitations to several fora to, among other issues, answer the question: are Nigerian banks safe or do they require any bailout? Professor Soludo was consistent in stating that because Nigeria moved ahead of the world to recapitalise and consolidate its banking system, “Nigerian banks are robust and strong enough to take losses” and that they are protected from the full effects of the global financial system. Interpretations of Soludo’s statement by analysts took different dimensions at that time. This prompted the apex bank to come up with a statement to the effect that at no time did Professor Soludo say that the Nigerian economy was “immune” to or “insulated” from the global crisis. By the time the banks passed through a stress test under a new governor of CBN in 2009, ‘a lot of dead bodies were exhumed from the books of the banks’ as some critics would put it. By the end of 2009, it became clear that the banks were not strong enough as Soludo had made the world to believe.

magnoliaNigerian banks: Resilient despite economic meltdown

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