The Central Bank of Nigeria (CBN) has reiterated its dedication to maintaining the stability and dependability of the country’s financial system.
This reassurance was made as part of efforts to restore and retain public confidence in Nigerian banks, following rumors of a potential collapse of one of the nation’s tier 1 banks.
In light of viral videos circulating on social media that showed customers stranded outside the banking halls and unable to complete transactions—both online and in-person—the CBN has reassured Nigerians that all deposits within the banking system remain secure.
Addressing these concerns, the CBN emphasized that it has mechanisms in place to ensure banks comply with regulations and best practices to safeguard the integrity of the system.
“Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient,” said Hakama Ali, the bank’s spokesperson, in a statement on Tuesday.
The apex bank also highlighted the early warning systems it has implemented to proactively detect and address emerging risks, thus enabling timely intervention whenever necessary.
“The Bank’s approach to Risk-Based Supervision ensures that it focuses its regulatory efforts on institutions that may pose the highest risk to the financial system,” Ali added.
This targeted oversight is designed to promote the overall health of the banking sector while concentrating on high-risk entities.
Additionally, the CBN has established Memoranda of Understanding with various countries where Nigerian bank subsidiaries are located.
This international collaboration strengthens regulatory coordination and ensures Nigerian banks operate safely and in compliance with global banking regulations.
“This collaboration enhances regulatory coordination and ensures that our banks operate within a safe and sound framework in accordance with banking regulations, both domestically and internationally,” the CBN statement clarified.
“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system,” Ali reassured.
