Kehinde Fajobi
The Central Bank of Nigeria (CBN) has calmed fears about the safety of funds deposited in financial institutions, assuring the public that policies are in place to protect all deposits.
In a statement issued on Tuesday by Hakama Ali, Acting Director of Corporate Communications at the CBN, the apex bank reaffirmed its commitment to maintaining the stability and reliability of Nigeria’s financial system.
The reassurance followed widespread panic on Monday, where rumours spread urging customers to withdraw their funds from certain banks, claiming their licenses had been revoked by the CBN.
“The CBN actively ensures that banks adhere to established regulations and best practices to maintain the integrity of our financial system. Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient,” the CBN’s statement read.
The bank also highlighted its proactive measures through Early Warning Systems, designed to detect and address emerging risks.
“This allows us to provide timely solutions to any foreseen issues,” the statement added.
Additionally, the CBN emphasised its Risk-Based Supervision approach, which targets banks that may pose higher risks to the system.
“This targeted strategy allows it to maintain a robust oversight mechanism while promoting the overall health of the banking sector,” the CBN said.
To further secure the system, the CBN has signed Memoranda of Understanding with countries hosting Nigerian banks’ subsidiaries.
“This collaboration enhances regulatory coordination and ensures that our banks operate within a safe and sound framework in accordance with banking regulations, both domestically and internationally.”
The statement concluded with a pledge: “The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system.”