CIBN Addresses Report Of Banks’ Collapse, NSPMC Inability To Print New Naira Notes

The President and Chairman of the Chartered Institute of Bankers of Nigeria (CIBN), Ken Opara, has allayed fears that some Nigerian banks could completely shut down following the failure of the Naira redesign policy.

Prime Business Africa reported that the policy of the Central Bank of Nigeria (CBN) has put the banking industry under intense scrutiny.

The banks have been accused of hoarding the new N200, N500 and N1,000 notes, which has resulted in Nigerians destroying bank properties. 

To prevent further attacks on their buildings, Deposit Money Banks (DMB) has closed some branches, and also reduced the hours their banking halls are opened to the public.

Also, some banks have reportedly warned their employees to disguise or not wear outfits that will make them easily linked to the bank they work for.

Financial institutions like Guaranty Trust Bank and Zenith Bank have been reported to close some branches, and this has increased fear among customers that some banks might collapse as a result of the Naira redesign policy. 

However, Opara doused the fear in a statement released on Monday, informing the public that the stability of the financial institutions is not in doubt. 

The CIBN President said the central bank will not be shutting down any deposit money banks, “In view of this, the apex bank has debunked the insinuation that it plans to shut down some deposit money banks,” Opara assured.

He also addressed the capacity of the Nigeria Security Printing and Minting Company (NSPMC) to adequately print sufficient new Naira banknotes. 

“We equally like to allay the fears around the shortage of materials for printing the new naira notes, which the CBN has also discredited. 

“This has also been debunked in a widely circulated press release by the Nigeria Security Printing and Minting Company, which described the story as false, baseless and misleading,” CIBN said.