Market News

The Central Bank of Nigeria on Monday dismissed reports suggesting distress in a regulated financial institution, describing the claims as misleading and capable of triggering unnecessary panic in the financial system.

In a press statement signed by the Acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank assured Nigerians that the country’s banking sector remains “resilient, safe, and sound.”

The clarification follows what the CBN described as “certain publications and social media reports”, that raised concerns over the operations of an unnamed financial institution under its regulatory supervision.

“The CBN wishes to categorically reassure the public, depositors, and stakeholders that the Nigerian banking sector remains resilient, safe, and sound,” the statement read.

While it did not name the institution in question, the CBN stressed that all licensed banks are subjected to “stringent regulatory requirements,” adding that there is “no cause for concern regarding the safety of depositors’ funds.”

The Bank further noted that it maintains a robust risk-based supervisory framework and early warning systems to detect and address vulnerabilities before they escalate.

“The Bank affirms that it continues to monitor all financial institutions under its regulatory purview and maintains robust frameworks for early warning signals and risk-based supervision,” the statement said.

“These mechanisms ensure that any emerging issues are promptly addressed to protect the integrity of the financial system,” it added.

The CBN urged the public to disregard unverified claims circulating online and instead rely on official communication channels for accurate updates about Nigeria’s financial system.

The statement reiterated the CBN’s commitment to “fostering a secure banking environment where depositors can be fully confident in the safety of their funds.”

Although the central bank did not confirm whether the reports pertained to solvency, liquidity concerns, or internal mismanagement, the swift response suggests growing sensitivity to reputational risks that could undermine public confidence in the sector.

The assurance comes amid broader reforms and recapitalisation efforts within the banking industry, with stakeholders closely monitoring the health of financial institutions.

The Bank concluded by stating that it will continue to monitor and adapt strategies to safeguard the financial interests of Nigerians and uphold the stability of the financial system.