See what CBN said about revoking licenses of more banks in Nigeria

• The Central Bank of Nigeria (CBN) has denied issuing a circular on the withdrawal of license of two more banks
• The bank said the message circulating on social media was fake and intended to mislead the public
• The fake circular asked customers of Keystone and Unity banks to transfer their funds to other banks as CBN is set to revoke their licenses

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The Central Bank of Nigeria (CBN) has debunked a memo saying it has withdrawn the licenses of Unity and Keystone banks.

A circular allegedly from the CBN and circulating on social media advised customers of the banks to withdraw their money from the banks using ATMs or transfer to alternate bank accounts ‘before it is too late.’

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso Credit: CBN
Source: Facebook

CBN calls circular fake news

The circular reads:

“CBN has withdrawn the licenses of Heritage Bank, Unity Bank, and Keystone Bank respectively.”“All the customers affected should try to withdraw all their money using an ATM card or transfer all the money to another bank now before it is too late.“Please let’s circulate this information to our colleagues, family and friends. Let’s be of help to others.”

However, the apex bank disclosed on its X page that it did not issue a circular on the withdrawal of the said banks' licenses.

According to the CBN, the viral circular was fake and intended to mislead the public.

CBN assures the safety of depositors' funds

The apex announced the revocation of Heritage Bank’s license and appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator on June 3, 2024.

CBN said the decision was because the bank could not improve its financial performance.

Following Heritage Bank’s license withdrawal, some reports emerged that the CBN would also terminate the licenses of Unity, Polaris, and Keystone banks.

According to the CBN, the content of the circular was unauthentic, stating that it has no plans to revoke the license of any bank.

In June, the financial regulator assured the public that the banking system and depositors' funds were safe.

NDIC to begin prosecution of Heritage Bank directors

Meanwhile, the NDIC, in partnership with law enforcement agencies, will start investigating the directors, managers, and staff of Heritage Bank.

BudinessDay reports that the development comes one month after the CBN withdrew the bank’s operational license.

The Managing Director of NDIC, Bello Hassan, disclosed this at Lagos's 2024 capacity-building workshop of law enforcement agencies.

According to him, the corporation is determined to prosecute those responsible for the bank's collapse.

Concerns as banks’ borrowing from CBN hits N57trn

Legit.ng reported that commercial banks’ borrowing from the Central Bank of Nigeria (CBN) in the first five days of July hit a high of N5.38 trillion.

The figure represents a 245% increase from the N1.56 trillion borrowed by banks in the first five days of June 2024.

According to data from the CBN, the amount represents a 202% annual increase from the N1.78 trillion borrowed by the banks in the first week of July 2023.

Source: Legit.ng