CBN debunks plan to revoke licences of Unity Bank, Polaris Bank, Keystone

Mariam Abeeb

The Central Bank of Nigeria (CBN) says it has no plans to revoke the licences of Unity, Polaris, and Keystone banks.

Online reports had claimed the apex bank would terminate the licences of the three banks, following the revocation of Heritage Bank’s licence.

However, in a post on its social media pages on Tuesday, the bank said the content was not authentic.

“The content is fake and not from the CBN,” the post reads.

On June 4, the Central Bank of Nigeria (CBN) revoked the banking licence of Heritage Bank.

According to the CBN, the decision was made due to the bank’s inability to improve its financial performance.

“The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability,” the bank said.

However, the apex said Heritage Bank had not improved and “has no reasonable prospects of recovery”, thereby making revoking the licence the next necessary step.

The bank said the Nigeria Deposit Insurance Corporation (NDIC) is as a result of this appointed as the liquidator of the bank per Section 12 (3) of the Banks and Other Financial Act (BOFIA) 2020.

The revocation, according to the apex bank, reflects its continued dedication to take all necessary steps to ensure the safety and soundness of Nigeria’s financial system.