Following concerns over the stability of Nigerian banks in the aftermath of Heritage Bank Plc’s license revocation, the Central Bank of Nigeria (CBN) has moved to reassure the public of the safety of their deposits and the resilience of the banking system.
Acting Director of the Corporate Communications Department at the CBN, Hakama Sidi Ali, debunked claims suggesting the possible revocation of operating licenses of Fidelity, Polaris, Wema, and Unity Banks. She clarified that a circular issued on January 10, 2024, regarding the dissolution of the Boards of Union, Keystone, and Polaris Banks, was being misinterpreted as a recent development.
Ali emphasized that the situation involving Heritage Bank was isolated, refuting rumors of further license revocations before the completion of the bank recapitalization exercise. She assured customers, particularly those of Heritage Bank, that their deposits were safe, with the Nigeria Deposit Insurance Corporation (NDIC) already commencing payments to insured depositors.
The CBN urged the public to continue their banking activities without worry, dismissing false reports about the health of specific Deposit Money Banks. Ali reiterated the commitment of the CBN to ensuring the stability of Nigeria’s financial system through its robust regulatory framework, safeguarding depositors’ funds across all financial institutions in the country.
Governor Olayemi Cardoso’s assurances regarding the recapitalization of banks were reiterated, emphasizing the measure’s aim to bolster the banking sector and mitigate risks. Ali called for cooperation from all stakeholders to ensure the success of the recapitalization process, which is crucial for the overall growth of the Nigerian economy.
“Despite ongoing recapitalization efforts, the Nigerian banking industry remains resilient. Key financial indicators are within regulatory thresholds. Customers are encouraged to proceed with transactions as usual, as the CBN remains committed to banking system safety,” Ali affirmed.
