Abuja — Senate President, David Mark, has said former Governor of the Central Bank of Nigeria (CBN), Chukwuma Soludo, misled the National Assembly on the banking consolidation exercise he supervised in 2005.

Mark said this at the one-day joint public hearing on a Bill for an Act to Establish Asset Management Corporation of Nigeria (AMCON) organised by the Senate Banking, Insurance and other Financial Institutions Committee.

Nkechi Nwaogu chairs the committee.

Declaring open the public hearing which had stakeholders in the banking industry in attendance, including CBN Governor, Lamido Sanusi, Director General of the Nigeria Stock Exchange (NSE), Ndi Okereke-Onyiuke, the Senate President reiterated the setting up of AMCON because of toxic debts of banks which has climbed to as high as trillions of naira.

"We have found ourselves where we are today as a result of one thing; the Central Bank of Nigeria's inability to supervise the banks properly.

"I recall that in Soludo's time, we called the governor of CBN no less than three times to come and brief us when the economic melt-down started, and on each occasion, we were assured and re-assured that the situation in Nigeria was excellent and that there was no problem at all.

"Now we know better.

"So, I think that is the point that we must note straight away. AMCON has become necessary because of the toxic debts that have been incurred by various banks.

"I believe very sincerely that if the supervision was alright, we would not have found ourselves running debts up to trillions of naira. I think that point is very important and we must note it."

"What is even more disturbing is that while the banks were running these toxic debts, they were also declaring profits.

"But those banks had these debts and then fat profits and all of us were clapping for them because we didn't know the inside story but they are people who are being paid on daily basis to know the inside story of the banks; they didn't do their work," Mark said.