In a recent statement, the Central Bank of Nigeria (CBN) reaffirmed its strong commitment to ensuring the stability and reliability of Nigeria’s financial system amid growing concerns about the global economic environment and potential risks to the banking sector.
Nume Ekeghe, a representative from the CBN, emphasized that depositors’ funds are secure and highlighted the proactive measures the bank is taking to maintain financial stability. “The CBN is dedicated to upholding public confidence in our banking system,” said Hakama Sidi Ali, Acting Director of Corporate Communications at CBN. He continued, “We want to assure the public that all deposits in Nigerian banks are safe.”
Ali explained that the CBN actively enforces compliance with established regulations and best practices, conducting regular stress tests to identify vulnerabilities within financial institutions. Additionally, the bank has introduced Early Warning Systems to detect and address emerging risks promptly. “Our risk-based supervision approach allows us to focus regulatory efforts on institutions that may pose the highest risk to the financial system,” he added, ensuring a robust oversight mechanism that promotes the health of the banking sector.
The CBN’s efforts also extend internationally, as evidenced by its Memoranda of Understanding (MoUs) with foreign regulators where Nigerian banks have subsidiaries. Ali stated, “This collaboration enhances our regulatory coordination, ensuring our banks operate under safe conditions both domestically and internationally.”
At the same time, the Chartered Institute of Bankers of Nigeria (CIBN) and the Body of Banks’ Chief Executive Officers have expressed their concerns regarding the increasing criticism of Nigerian banks on social media. They issued a joint statement highlighting the crucial role the banking sector plays in Nigeria’s economy and called for a more balanced viewpoint that acknowledges the industry’s contributions to national development.
Dr. Oliver Alawuba, Chairman of the Body of Banks’ CEOs, and Prof. Pius Deji Olanrewaju, President of the CIBN, noted that Nigeria’s banking sector is among the most heavily regulated industries in the country. “Nigerian banks operate under strict regulatory standards that promote transparency, accountability, and integrity,” they stated.
Despite the online criticisms, the CIBN and bank CEOs pointed out that Nigerian banks have consistently attracted strong investor confidence, making them a preferred choice for retail and institutional investors. They also emphasized the importance of trust built through the professionalism of individuals in the sector, many of whom hold national and international certifications.
Alawuba remarked, “The banking sector plays a pivotal role in Nigeria’s economic growth. It significantly contributes to individuals, businesses, and society as a whole.”
The organizations also urged that grievances regarding banking operations should be directed to proper regulatory bodies such as the CBN and the Nigeria Deposit Insurance Corporation (NDIC), which can address complaints impartially. “Using social media to voice complaints could undermine the credibility of the system and damage the reputation of these institutions,” they cautioned.
In conclusion, the CIBN and the CEOs encouraged individuals to reconsider their approach and think critically before making accusations. “The banking sector remains dedicated to providing the highest standards of service, guided by stringent regulations. Together, we can create an environment of trust and collaboration, recognizing the positive impact of a professional and competitive banking sector,” they concluded.
