BREAKING: CBN denies revocation rumours for Fidelity, Polaris, Wema, Unity Banks

The Central Bank of Nigeria (CBN) has refuted allegations that it is contemplating the revocation of operating licences for Fidelity, Polaris, Wema, and Unity Banks.

This clarification came amidst concerns about the stability of some Nigerian banks following the licence revocation of Heritage Bank Plc.

In a statement released on Monday, June 10, Hakama Sidi Ali, the acting director of the Corporate Communications Department of the CBN, reassured the public of the safety of their deposits and the resilience of the banking system.

“The Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds,” Mrs. Sidi Ali stated.

She addressed the misinformation going around regarding a circular issued on January 10, 2024, which announced the dissolution of the Boards of Union, Keystone, and Polaris Banks.

This circular is now being misrepresented as a new directive issued on June 10, 2024.

Mrs. Sidi Ali clarified that this is an old notification and not a recent development.

“The case of Heritage Bank is isolated,” she stated, adding that allegations of further licence revocations before the completion of the bank recapitalisation exercise are unfounded and aimed at causing unnecessary panic.

She urged customers, especially 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 worry. “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, guaranteeing the safety of depositors’ funds across all Nigerian financial institutions.

Mrs. Sidi Ali noted the assurances of the CBN Governor, Olayemi Cardoso, about 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,” Mrs. Sidi Ali said.

She called on all stakeholders to support the recapitalisation initiative, which she believes is crucial for the overall growth of the Nigerian economy.