Following the recent revocation of the operating licence of Heritage Bank Plc, the Central Bank of Nigeria (CBN) yesterday clarified that there are no current plans to withdraw additional banking licence, despite some speculation to the contrary.
The Central Bank’s clarification came after several media reports suggested that the banking regulator was set to revoke the licenses of three additional banks.
In a statement on Tuesday, CBN’s acting Director of Corporate Communications, Ms Hakama Sidi Ali, dismissed the allegations as false and intended to incite panic in the financial system.
She asserted that the Nigerian financial system remains safe, sound, and resilient, adding that the ongoing recapitalization of the industry will boost capital injection amongst other benefits.
She said, “Our banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the CBN Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs).
“These plans are currently being reviewed by the bank. In addition to enhancing buffers to withstand economic shocks, this proactive measure by the CBN to require CMNIBs to recapitalise will result in increased capital for Nigeria’s banks, enabling them to provide much-needed credit to critical sectors of the economy.
“This will increase the financial system’s contribution to the growth and development of a $1 trillion Nigerian economy.”
She reassured all stakeholders that the Bank was committed to ensuring the financial system’s stability.
She said, “Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness.”
On Monday, the CBN revoked the operating licence of Heritage Bank Plc with immediate effect, after it breached regulatory guidelines as a result of its inability to improve its financial performance.
The Bank justified the move, saying it was in accordance with its mandate to promote a sound financial system in Nigeria and the exercise of its powers under Section 12 (1l of the Banks and Other Financial Act (BOFIA) 2020.
Following the revocation of its banking licence, the Nigeria Deposit Insurance Corporation (NDIC) also disclosed that it had commenced the liquidation of the defunct bank under Section 55 sub-sections 1 and 2 of the NDIC Act 2023.
