Moving to Avoid Contagion, CBN Says Depositors’ Funds in Banks Are Safe, Sound, Despite Obazee’s Recommendation on Union Bank

James Emejo in Abuja

The Central Bank of Nigeria (CBN) yesterday moved swiftly assure the public that Nigerian banks remained safe and sound.

The apex bank’s reassurance came against the backdrop of a recommendation by the Special Investigator probing the activities of the central bank for the federal government to take over some CBN-supervised financial institutions. The recommendation had raised fear about the implications of such a recommendation and likely contagion effect it trigger in the banking institution.

However, in a statement, CBN acting Director, Corporate Communications, Mrs. Sidi-Ali Hakama, urged the public to continue with their regular activities without being alarmed by reports that have not emanated from the apex bank on the health status of Nigerian banks.

She said the central bank remained fully equipped to carry out its statutory duty of upholding a stable financial system in the country.

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

“For the avoidance of doubt, Nigerian banks remain safe and sound,” Hakama said.

The apex bank, therefore, urged bank customers to proceed with their banking transactions as usual, as there was no cause for concern.

Essentially, the Special Investigator probing the activities of the CBN, had reportedly recommended that the federal government should takeover Union Bank which was acquired by Titan Trust Bank

The investigator, Mr. Jim Obazee claimed the ownership of the bank was linked to former CBN Governor, Mr. Godwin Emefiele.

But Tropical General Investments (TGI) Group, which is the majority owner of Titan Trust and Union Banks, clarified in a statement issued by its Head, Corporate Communications, Ms. Rafiat Gawat, Union Bank was not owned by the government adding that no government money through the CBN or AMCON was used to buy it contrary to claims made by the investigator, Mr. Jim Obazee.

The statement added that “The process was diligently followed as captured in the report of the investigator.

“As responsible corporate citizens, we are always willing, ready, and able to support stakeholders including regulators to learn and understand our Group and its operations.”