Pastor Matthew Ashimolowo, the well-known founder of Kingsway International Christian Centre, recently shared a personal financial setback, revealing that he lost N200 million from investments in Nigerian bank shares. In a video that quickly went viral, Ashimolowo opened up about his experience, urging Nigerians to reconsider investing in bank shares and instead look into more stable investment opportunities like real estate.
Ashimolowo’s story is a cautionary tale. He recounted how, around 2005 or 2006, he borrowed N60 million from Sterling Bank to buy shares in Skye Bank. At the time, the shares were valued at N14 each, but their value soon plummeted to just N2.50 per share, leaving him with a massive loss.
The pastor’s frustration was clear as he warned others about the risks of investing in bank shares. He highlighted the disparity between the losses suffered by ordinary investors and the continued wealth of bank executives. “In the Nigerian shares space, I have suffered and won’t touch it again,” Ashimolowo stated. He pointed out that, despite the downturn in share prices, bank managing directors seem to be doing just fine.
To illustrate his point further, Ashimolowo shared another painful experience. He had invested N36 million in shares of First Bank at N12 per share, only to watch them fall to N6 per share. Similarly, he bought shares of GTB at around N18 per share, but their value eventually dropped to N3.60. These significant losses led him to advise against investing in bank shares.
Ashimolowo also recounted a particularly stressful incident with Sterling Bank. After borrowing money to invest in Skye Bank shares, the value of which collapsed, the bank sent four policemen to his office to demand repayment. He had to scramble to find the money within two to three months, adding further stress to an already difficult situation.
Reflecting on his experiences, Ashimolowo urged Nigerians to be cautious and consider safer investments. He suggested that real estate could be a more reliable and profitable option, given the risks he faced with bank shares.
Beyond his personal financial losses, Ashimolowo touched on broader issues affecting Nigeria. He argued that the country’s problems are rooted not just in leadership but also in systemic issues. He likened the situation to flying a plane with a bad pilot or a plane that’s leaking oil—either way, the outcome is disastrous. “Quality leadership is a problem, and we are flying a broken plane,” he concluded.
