CBN Finally Speaks on Safety of Depositors' Fund Amid Union, Keystone Banks' Takeover Concerns

• The Central Bank of Nigeria has assured that depositors' funds in the banks are safe amid takeover concerns
• This is after recommendations for the FG to take over some CBN-supervised financial institutions
• According to the CBN, there is no reason for depositors to worry as Nigerian banks remain safe and sound

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The Central Bank of Nigeria (CBN) has addressed concerns about depositors' funds raised in recent times.

This comes after a report by Jim Obazee, the Special Investigator probing the apex bank under Godwin Emefiele, pointed to fraud in the acquisition of Union Bank and Keystone Bank and other allegations against the former CBN governor, Godwin Emefiele.

Recommending next line of action, Obazee said:

Read also

Access, UBA, Wema, GTB, Zenith, others announce new closure time, plan to shutdown branches

"Otherwise, we are on the verge of recovering these two banks for the federal government."

Obazee's statement on the planned recovery of the two banks for the federal government has since fueled speculations and recommendations for the Federal Government to take over the banks.

CBN insists funds are safe

In a statement on its X page, the CBN has assured that depositors' funds are intact and they need not worry about safety.

It stated:

“The Central Bank of Nigeria (CBN) has noticed reports, in certain media outlets, about a recommendation for the Federal Government to take over some CBN-supervised financial institutions.

“For the avoidance of doubt, Nigerian banks remain safe and sound. The CBN encourages the public to continue their regular activities without being alarmed by reports that have not emanated from the CBN about the health status of Nigerian banks.

Read also

“It is not deliberate”: FG speaks on new solution to solve cash scarcity problem

The CBN assured that it is fully equipped to carry out its statutory duty of upholding a stable financial system in Nigeria.

It added:

“We assure the general public and depositors about the safety of their funds in Nigerian financial institutions.

“Bank customers are therefore advised to proceed with their banking transactions as usual, as there is no cause for concern.”

Amid acquisition controversy, Union Bank sends message to customers on transactions on dorm accounts

Legit.ng reported that the embattled Union Bank will begin N50 deductions for all international transactions as an electronic levy on January 1, 2024.

In an email to its customers, the bank stated that the deduction would apply to all foreign currency transactions equivalent to or more than N10,000.

The Nigerian government introduced the Electronic Money Transfer Levy (EMTL) in the 2020 Finance Act to ramp up revenue.

Source: Legit.ng