During the last Bank Consolidation, I decided to invest in my children’s future by purchasing shares—N100,000 worth for each of my four kids. The bank of choice was the African Continental Bank (ACB). It seemed like a prudent decision at the time. But as the story unfolded, ACB couldn’t stay afloat and was absorbed by Citizens Bank. My children’s shares were supposedly transferred there. Not long after, Citizens Bank itself was taken over by Spring Bank. But Spring Bank’s fate was even worse—it was eventually liquidated, leaving those shares, bought with the hope of securing my children’s future, completely worthless.
My wife faced a similar ordeal. She invested in 1,000 shares of All States Trust Bank, only to be informed later that her shares were never recorded. Somewhere along the line, someone siphoned off the investments of honest people like us.
Undeterred, I decided to try again and purchased 5,000 shares in First Bank for my children. However, what followed was a series of bureaucratic hurdles—letters, resubmissions, signature verifications, and more. Each time, First Bank spun me another fantastical story, reminiscent of Alice in Wonderland.
I had entrusted these share certificates to a stockbroking firm run by an Imo monarch based in Lagos. When I checked in on my investments in 2020, I discovered that the firm had relocated. The monarch, with a dismissive wave, informed me that all the shares had lost their value over time. When I asked why I wasn’t advised to sell and recover something before the decline, he muttered some excuse about online trading changes and the challenges of contacting me during the COVID-19 pandemic. It was clear—I had been sucked dry, short-changed by both the banks and the brokers, all under the guise of legality backed by the Central Bank of Nigeria (CBN).
If you’re considering buying shares today, I urge you to tread carefully. My sister invested up to N1 million in Japaul, an oil and gas firm headquartered in Ikeja. Those share certificates are now nothing more than museum pieces. Fidelity shares once valued at N9.50 were later reworked to N0.50. The losses are staggering, and the lessons are bitter.
Our elders say, “A blacksmith who cannot forge a gong should look intently at the hawk’s tail.” In other words, caution and foresight are vital. As we navigate the current economic climate, remember that the stories of those who have gone before us are warnings, not just anecdotes. In this economic weather, the ending is unlikely to be a happy one.
— Innocent Nwankwo
If you’re considering buying shares today, I urge you to tread carefully. My sister invested up to N1 million in Japaul, an oil and gas firm headquartered in Ikeja. Those share certificates are now nothing more than museum pieces. Fidelity shares once valued at N9.50 were later reworked to N0.50. The losses are staggering, and the lessons are bitter.
