Remember the great revolutionary action undertaken by Professor Charles Chukwuma Soludo to revamp the banking industry from total collapse in the mid 90’s.
It was like an impossible tasks for each bank to raise their capital base from N2b to N25b. There are so many mushroom banks with few stable ones totaling 89 banks.
Soludo gave18 months for all the banks to recapitalize otherwise it would be closed down. There are many uncertainties in the system at a time telecommunication industry was given approval to operate.
Many bankers resigned en-mass to join the telecommunication industry made up of three giants network providers, MTN, Glo Mobile and Econet at the time.
There was merger and acquisitions among banks while many banks went to the capital markets to source for funds to raise their capital base.
At the end of the Soludo”s banking consolidation on December 31, 2005, twenty five banks emerged from 75 banks out of 89 banks in the system. 14 banks fell by the way side.
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