The Central Bank of Nigeria (CBN) on Monday reaffirmed the safety of deposits in Nigerian banks, emphasizing the industry’s resilience despite recent unfounded concerns. CBN acting Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, addressed these concerns in a statement, particularly in light of Heritage Bank Plc’s recent license revocation by the apex bank.
Mrs. Sidi Ali refuted claims that the CBN was considering revoking the operating licenses of Fidelity, Polaris, Wema, and Unity Banks. She clarified that a circular issued by the bank on January 10, 2024, which announced the dissolution of the boards of Union, Keystone, and Polaris Banks, was mistakenly circulated as though it was issued on June 10, 2024.
She emphasized that Heritage Bank’s situation was an isolated case and that rumors of additional license revocations before the completion of the ongoing banking industry recapitalization exercise were fabrications aimed at creating panic within the system. Customers of Heritage Bank were assured that their deposits were safe and that the Nigeria Deposit Insurance Corporation (NDIC) had begun payment to the bank’s insured depositors.
Mrs. Sidi Ali urged the public to continue their regular banking activities without concern, dismissing false reports about the health of specific Deposit Money Banks (DMBs) in the country. She highlighted the central bank’s robust regulatory framework and proactive measures to ensure the stability of Nigeria’s financial system, guaranteeing the safety of depositors’ funds in all banking institutions.
The statement reiterated assurances from CBN Governor, Mr. Olayemi Cardoso, that the recapitalization of banks aims to strengthen the banking system and safeguard the sector against risks. Mrs. Sidi Ali called on all stakeholders to cooperate in ensuring the success of this process, which she noted is vital for the overall growth of the Nigerian economy.
“Without prejudice to the ongoing recapitalization process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds,” she stated. Mrs. Sidi Ali encouraged customers to proceed with their transactions as usual, reaffirming the CBN’s commitment to ensuring the safety and stability of the banking system.