The Central Bank of Nigeria (CBN) has reiterated its commitment to ensuring the safety of depositors’ funds and the resilience of the banking system following concerns sparked by the recent revocation of Heritage Bank Plc’s license.
Mrs. Hakama Sidi-Ali, Acting Director of the CBN’s Corporate Communications Department, reassured the public in a statement issued on Monday in Abuja. She addressed speculations circulating about the stability of Nigerian banks, particularly in relation to purported plans to revoke the operating licenses of Fidelity, Polaris, Wema, and Unity Banks.
Sidi-Ali clarified that a circular issued on January 10, 2024, regarding the dissolution of the Boards of Union, Keystone, and Polaris Banks, was being misrepresented as a recent development. She emphasized that Heritage Bank’s case was an isolated incident and refuted claims of imminent license revocations before the completion of the CBN’s ongoing recapitalization exercise.
“Allegations of further license revocations are baseless fabrications aimed at causing unnecessary panic,” stated Sidi-Ali.
Addressing concerns specifically related to Heritage Bank, she assured customers that their deposits were secure under the Nigeria Deposit Insurance Corporation (NDIC), which has begun reimbursing insured depositors.
Sidi-Ali urged the public to continue banking activities as usual, dismissing any unfounded reports concerning the financial health of specific Deposit Money Banks (DMBs). She underscored the CBN’s robust regulatory framework aimed at ensuring the stability of Nigeria’s financial system and safeguarding depositors’ funds across all financial institutions.
“The ongoing recapitalization process is designed to strengthen the banking sector and mitigate risks,” she affirmed, echoing earlier statements by CBN Governor Olayemi Cardoso.
Emphasizing the resilience of the Nigerian banking industry, Sidi-Ali encouraged stakeholders to support the recapitalization efforts for the overall benefit of the economy.
“As we proceed with the recapitalization process, I want to reaffirm that Nigeria’s banking sector remains resilient, with key financial indicators well within regulatory thresholds. Customers are encouraged to maintain confidence and conduct their transactions securely,” she concluded.
