Why banks and other financial institutions may shut branches

• Banks and other financial institutions in Nigeria may be shutting thousands of branches nationwide due to the planned hunger protest
• While the banks have not officially notified their customers of the intention to shut offices, the banks reportedly asked their customers to be vigilant
• However, other financial institutions notified their customers of their plans to close offices due to the protest

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

Banks and other financial institutions in Nigeria will be shut down on Thursday, August 1, 2024, as the hunger protest begins nationwide.

None of the banks officially sent out a notice of closure to customers, but employees disclosed in a chat that they have been asked not to report for work on Thursday, August 1, 2024, as the banks monitor the protest. 

Nigerian banks play caution and may not open branches for customers as protest begins Credit:@Nairarates
Source: Getty Images

CBN has yet to ask banks to close offices

Also, the financial institution's regulator, the Central Bank of Nigeria (CBN), has issued a notice of closure to banks due to the protests.

The bankers said they must play it safe, as other protests have led to property destruction and vandalism of banks and financial institutions.

According to reports, Nigerians are protesting what they call bad governance in the country as economic hardships and inflation take their toll on the populace.

A Nigerian Pension Fund Administrator, Leadway Pensure, disclosed to their customers that their offices would be closed nationwide due to the August 1, 2024, protest.

The company said.

“Due to the planned nationwide protest starting August 1, 2024, please be informed that all our offices will be closed on Thursday, August 1, 2024, and Friday, August 2, 2024, at the first instance as we monitor the situation.”

Other financial institutions to close shops

The firm urged its customers to use its digital platforms for transactions.

Another financial institution, Meritem Securities Limited, also notified its customers of its intention to close offices on Wednesday, August 1, 2024.

Their customers were advised to reach them via their online channels.

Punch reported that the President of the National Union of Banks, Insurance, and Financial Institutions, Anthony Abakpa, stated that the banks would monitor the planned nationwide protest and assess its progress. as they have not received any formal notice from the CBN to close branches.

Bank customers rush to reactivate dormant accounts

Legit.ng earlier reported that bank customers affected by the Central Bank of Nigeria (CBN) guidelines on dormant accounts rushed to their respective banks on Tuesday, July 30, 2024, to reactivate their accounts.

Some customers said they had to activate their bank accounts to prevent the CBN from taking over their funds and savings.

Reports say courtrooms were also swarming with those who went to swear to affidavits needed to reactivate their dormant account.

Source: Legit.ng