Nigeria CBN Denies Plans to Revoke Licenses of Three Banks, Ensures Financial Stability

The Central Bank of Nigeria (CBN) has denied rumors of revoking the licenses of three banks, including Heritage Bank. The CBN assured the public of the financial system's stability and highlighted ongoing efforts for bank recapitalization to support economic growth and development.

The Central Bank of Nigeria (CBN) has dismissed circulating rumors about the potential revocation of licenses for three banks, including Heritage Bank.

In a press statement, Haka Sidi-Ali, the Acting Director of Corporate Communications for the CBN, firmly denied these claims, describing them as unfounded and aimed at inciting unnecessary panic within the financial system.

"The attention of the Central Bank of Nigeria (CBN) has been drawn to some information circulating in the public domain, suggesting that the CBN is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday, June 3, 2024," Sidi-Ali stated.

"The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system."

The CBN reassured the public of the safety, soundness, and resilience of the Nigerian financial system.

The statement emphasized that Nigerian banks are in the process of submitting implementation plans for the Banking Sector Recapitalisation Programme. This initiative follows the CBN's recent circular that revised the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs). The plans submitted by the banks are currently under review by the CBN.

In addition to bolstering the financial sector's ability to withstand economic shocks, the CBN's proactive measures to enforce recapitalization are expected to increase the capital available to Nigerian banks. This increase in capital will enable banks to extend more credit to critical sectors of the economy, thereby supporting the growth and development of Nigeria's economy, projected to reach $1 trillion.

The CBN reiterated its unwavering commitment to maintaining the stability of the financial system, assuring Nigerians that the country's banking sector remains robust and resilient.