Abuja, Nigeria – The Central Bank of Nigeria (CBN) has urged depositors of Union, Keystone, and Polaris banks not to panic about the safety of their funds, despite the lenders missing the March 31st deadline for recapitalisation.
Speaking on Arise Television on Thursday, April 2, the CBN’s Director of Banking Supervision, Olubukola Akinwunmi, assured customers that the banks are undergoing necessary judicial and regulatory procedures. He confirmed the banks have the capacity to raise the required capital and are in the process of doing so.
“It’s appropriate as an institution that supports the rule of law that we consider it necessary,” Akinwunmi said, adding that Governor Olayemi Cardoso has noted these banks have different pathways to recapitalisation. He emphasized that depositors have nothing to fear and can withdraw their funds without losing money.
The CBN stated it is maintaining close watch on the banks until their legal processes are concluded, after which they will comply with the minimum capital requirements. Meanwhile, the apex bank highlighted that banks will undergo occasional “stress tests” to ensure financial stability without waiting decades for another recapitalisation exercise.
These assurances come as the CBN confirmed the overall conclusion of the banking sector recapitalisation programme on Wednesday, April 1. The central bank reported that 33 banks met the new requirements, raising a total of N4.65 trillion in fresh capital over 24 months, with 72.55% sourced locally.
