More
    HomeBusinessCBN Assures Public of Safety of Depositors' Funds Amid Stability Concerns

    CBN Assures Public of Safety of Depositors’ Funds Amid Stability Concerns

    Published on

    By Milcah Tanimu

    The Central Bank of Nigeria (CBN) has reiterated the security of depositors’ funds and affirmed the resilience of the country’s banking system. This reassurance was delivered by the Acting Director of the Corporate Communications Department, Mrs. Hakama Sidi-Ali, in a statement issued on Monday in Abuja.

    This statement addresses growing concerns regarding the stability of Nigerian banks following the license revocation of Heritage Bank Plc. Mrs. Sidi-Ali refuted claims suggesting that the CBN is considering revoking the operating licenses of Fidelity, Polaris, Wema, and Unity Banks.

    Furthermore, Sidi-Ali clarified that a January 10, 2024 circular about the dissolution of the Boards of Union, Keystone, and Polaris Banks is being misrepresented as a recent development. She emphasized that the situation with Heritage Bank is an isolated incident and not indicative of a broader trend.

    “Allegations of further revocation of licences prior to the completion of CBN’s recapitalisation exercise are mere fabrications aimed at creating panic within the system,” Sidi-Ali stated. She reassured Heritage Bank customers that their deposits are safe, and the Nigeria Deposit Insurance Corporation (NDIC) has begun compensating insured depositors.

    The CBN spokesperson urged the public to disregard false reports about the stability of specific Deposit Money Banks and to continue banking as usual. She emphasized the CBN’s commitment to maintaining the stability of Nigeria’s financial system through its robust regulatory framework, thereby ensuring the safety of depositors’ funds.

    Reiterating the CBN Governor, Olayemi Cardoso’s assurances, Sidi-Ali mentioned that the ongoing recapitalisation of banks aims to strengthen the banking sector and mitigate risks. She called for stakeholder cooperation to ensure the success of this process, highlighting its importance for the overall growth of Nigeria’s economy.

    “Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds. Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system,” she added.

    In related news, it was noted that CBN directives to International Oil Companies (IOCs) may strengthen the naira, the currency outside banks declined to N3.61 trillion in April, and the Federal Government serviced its debt with $2.2 billion in five months, according to CBN reports.

    Latest articles

    Northern Youth Group Claims Plot to Undermine Tinubu’s Security Efforts

    By Milcah Tanimu The Grand Alliance of Coalition of Northern Youths Movement (GANOM) has sounded...

    ABUTH Resident Doctors Initiate 5-Day Strike Over Salary Demands

    By Milcah Tanimu Resident doctors at Ahmadu Bello University Teaching Hospital (ABUTH), Zaria, have begun...

    Chima Udoye Wins 2024 Nigerian Idol

    By  Milcah  Tanimu Chima Udoye has emerged as the winner of the 2024 Nigerian Idol,...

    Court Dismisses Abacha Family’s N500m Suit Against Nigerian Government Over Abuja Property

    By Milcah Tanimu A Federal High Court in Abuja has dismissed a suit filed by...

    More like this

    Northern Youth Group Claims Plot to Undermine Tinubu’s Security Efforts

    By Milcah Tanimu The Grand Alliance of Coalition of Northern Youths Movement (GANOM) has sounded...

    ABUTH Resident Doctors Initiate 5-Day Strike Over Salary Demands

    By Milcah Tanimu Resident doctors at Ahmadu Bello University Teaching Hospital (ABUTH), Zaria, have begun...

    Chima Udoye Wins 2024 Nigerian Idol

    By  Milcah  Tanimu Chima Udoye has emerged as the winner of the 2024 Nigerian Idol,...