The Central Bank of Nigeria (CBN) has swiftly moved to dispel rumors suggesting it is considering revoking the operating licenses of several Nigerian banks, including Fidelity, Polaris, Wema, and Unity Banks.
Responding to growing concerns over the stability of some Nigerian banks in the wake of Heritage Bank Plc’s license revocation, the CBN issued a statement on Monday, June 10, through Hakama Sidi Ali, the acting director of the Corporate Communications Department.
In the statement, Mrs. Sidi Ali reassured the public about the safety of their deposits and the resilience of the banking system, stating, “The Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds.”
Addressing misinformation surrounding a circular issued on January 10, 2024, which announced the dissolution of the Boards of Union, Keystone, and Polaris Banks, Mrs. Sidi Ali clarified that this circular is now being misrepresented as a new directive issued on June 10, 2024.
She emphasized that it is an old notification and not a recent development.
“The case of Heritage Bank is isolated,” she added, refuting allegations of further license revocations before the completion of the bank recapitalization exercise.
Such claims, she noted, are unfounded and aimed at causing unnecessary panic among customers.
Mrs. Sidi Ali urged customers, particularly those of Heritage Bank, not to worry about the safety of their deposits, as the Nigeria Deposit Insurance Corporation (NDIC) has already begun payments to the bank’s insured depositors.
Emphasizing the CBN’s commitment to financial stability, Mrs. Sidi Ali encouraged the public to continue their regular banking activities without concern.
“Customers are encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system,” she assured.
She highlighted the robust regulatory framework of the CBN, which proactively ensures the stability of Nigeria’s financial system, guaranteeing the safety of depositors’ funds across all Nigerian financial institutions.
Mrs. Sidi Ali reiterated the assurances of CBN Governor Olayemi Cardoso regarding the ongoing recapitalization process designed to strengthen the banking system and protect it from potential risks.
“Without prejudice to the ongoing recapitalization process, I want to restate that the Nigerian banking industry remains resilient,” she affirmed.
She called on all stakeholders to support the recapitalization initiative, which she believes is crucial for the overall growth of the Nigerian economy.