The Central Bank of Nigeria (CBN) has firmly denied allegations that it is considering revoking the operating licenses of Fidelity, Polaris, Wema, and Unity Banks.
This clarification comes amid growing concerns about the stability of some Nigerian banks following the license revocation of Heritage Bank Plc.
Hakama Sidi Ali, the acting director of the Corporate Communications Department of the CBN, released a statement on Monday, assuring the public of the safety of their deposits and the overall resilience of the banking system. “The Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds,” stated Mrs. Sidi Ali.
Addressing the misinformation circulating about 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 being misrepresented as a new directive dated June 10, 2024. She emphasized that this is an old notification and not a recent development.
“The case of Heritage Bank is isolated,” Mrs. Sidi Ali asserted, dismissing allegations of further license revocations before the completion of the bank recapitalisation exercise as unfounded and aimed at causing unnecessary panic. She 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.
Reiterating 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 said.
She also highlighted the robust regulatory framework of the CBN, which proactively ensures the stability of Nigeria’s financial system and guarantees the safety of depositors’ funds across all Nigerian financial institutions.
Additionally, Mrs. Sidi Ali noted the assurances of CBN Governor Olayemi Cardoso regarding the ongoing recapitalisation process designed to strengthen the banking system and protect it from potential risks. “Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient,” she affirmed.
Mrs. Sidi Ali called on all stakeholders to support the recapitalisation initiative, which she believes is crucial for the overall growth of the Nigerian economy.
