CBN Assures Bank Customers of Funds Safety Over Rumoured Plans to Take Over Some Financial Banking Institutions

The Central Bank of Nigeria (CBN) has reassured bank customers that their funds are secure, amid rumors of purported plans to take over certain financial banking institutions.

This was disclosed by the Acting Director, Corporate Communications Department of the CBN, Mrs Hakama Sidi-Ali, via a statement on Wednesday.

Sidi-Ali noted that the assurance was neccsitated following reports about a recommendation for the Federal Government to take over some CBN-supervised financial institutions, which are Titan Trust Bank (formerly Union Bank) and Keystone Bank.

In her words,

“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. The CBN is fully equipped to carry out its statutory duty of upholding a stable financial system in Nigeria. We assure the general public and depositors about the safety of their funds in Nigerian financial institutions”.

The rumored claims of the CBN plan to takeover Union Bank and Titan Trust bank, are coming, following a special investigation report on the fraudulent activities of the former central bank governor Godwin Emefiele.

The investigation is allegedly linked to a report by Mr Jim Obazee, CBN’s special investigator, that former governor of the apex bank, Mr Godwin Emefiele, used his proxies to acquire the two financial institutions (Union Bank and Titan Trust Bank).

Obazee, the head of the special investigation panel on the CBN and related entities, said Emefiele used two Dubai-based companies — Luxis International DMCC (Luxis) and Magna International DMCC (MAGNA) — owned by Vink Corporation Middle East FZC, to set up Titan Trust Bank as proxies.

The leaked report which alleges irregularities in the acquisition process of Union Bank by TTB, has raised concerns among Union Bank’s stakeholders, especially its customers.

However, the CBN has doused customers’ concerns by urging them to go ahead with their banking transactions as usual, as there was no cause for concern.