[dropcap]M[/dropcap]atthew Ashimolowo, a prominent Nigerian clergyman and senior pastor of Kingsway International Christian Centre (KICC) in London, has issued a stern warning to Nigerians about the dangers of investing in bank shares.
Speaking on the podcast “Key to Keys,” Ashimolowo shared his personal experiences of significant financial losses incurred through investments in Nigerian bank shares, urging the public to approach such investments with caution.
Amid a wave of promotions by Nigerian banks encouraging citizens to purchase shares, Ashimolowo recounted how he lost a substantial sum of N36 million after investing in shares of First Bank.
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He detailed how the value of his investment plummeted from N36 per share to N12 per share, leading to a significant loss.
The clergyman’s cautionary tale comes as banks such as Zenith Bank, Fidelity Bank, GTCO, and FCMB are actively encouraging Nigerians to buy into their companies.
Despite these campaigns, Ashimolowo advised against such investments, highlighting the risks involved and the potential for severe financial loss.
“I’ve suffered in the Nigerian share space; I won’t touch it again,” Ashimolowo said during the podcast.
“I notice all over the place the banks are now calling for you to buy shares. How many will buy? Hear my story. I bought N36 million worth of First Bank shares at N36 per share; it fell to N12 per share. I lost that.”
Ashimolowo also shared another instance where he borrowed N60 million in 2005 or 2006 from Sterling Bank to invest in Skye Bank shares.
He revealed that the shares, initially priced at N14, dropped to N2.50, resulting in another financial blow. The loss was so severe that Sterling Bank sent representatives, accompanied by police officers, to his office to recover the loan.
“The same Skye Bank, who loaned me money when we were building a house, showed up in our church with their risk manager and about 10 staff members during a service, as if they were going to disrupt the church service,” Ashimolowo recounted.
The popular pastor also mentioned his investments in Guaranty Trust Bank, where he experienced a similar fate. He bought shares at N18 per share, only to see the value drop to N3.60.
Reflecting on these experiences, Ashimolowo lamented the missed opportunities, stating that the money lost in these investments could have been better spent on real estate, which would have appreciated over time.
He pointed out that, at the time he borrowed N60 million to buy Skye Bank shares, the same amount could have purchased a plot of land in Banana Island, one of Lagos’ most prestigious locations.
Despite his losses, Ashimolowo noted that banks are once again pushing for share purchases.
He urged Nigerians to be wary, advising that land or other tangible investments might offer more security and potential for growth than the volatile stock market.
Ojelabi, the publisher of Freelanews, is an award winning and professionally trained mass communicator, who writes ruthlessly about pop culture, religion, politics and entertainment.
