Central Bank Of Nigeria CBN says country's banking industry remains 'strong'

In announcing the move, Central Bank Governor Godwin Emefiele said Skye Bank was not in distress and was allowed to conduct banking activities.

  • Published:
A road safety officer stands in front of a Central Bank of Nigeria building, following an explosion that killed some workers and injured many, in Calabar, Nigeria play A road safety officer stands in front of a Central Bank of Nigeria building, following an explosion that killed some workers and injured many, in Calabar, Nigeria March 11, 2016. (REUTERS/Stringer)
24/7 Live - Subscribe to the Pulse Newsletter!

Nigeria's central bank said on Wednesday the country's banking industry is "strong", a statement aimed at calming fears about the sector just days after it replaced the chairman and chief executive of one of the country's financial institutions.

CBN spokesman Isaac Okorafor, in a statement issued late on Wednesday, referred to "unfounded speculation" that some of the country's banks "may have gone or may be going into distress", adding that the claims were untrue.

"The Nigerian banking industry remains strong in spite of the global economic challenges emanating from the collapse of global commodity prices", said Okorafor.

He also urged members of the public not to make panic withdrawals.

"It is important that we do not create problems when none exists", he said.

The Central Bank of Nigeria (CBN) on Monday said it replaced executives at Skye Bank after it failed to meet minimum capital ratios.

Nigeria's central bank has the authority to remove bank executives, powers which it exercised during the 2007-09 global financial crisis when it sacked nine CEOs at banks which were deemed undercapitalised.

In announcing the move, Central Bank Governor Godwin Emefiele said Skye Bank was not in distress and was allowed to conduct banking activities.

He also said none of Nigeria's 21 commercial lenders were currently in distress.

Africa's largest economy is grappling with its worst crisis in decades due to low oil prices because the OPEC member's crude sales make up about 70 percent of government revenue.

Do you ever witness news or have a story that should be featured on Pulse Nigeria?
Submit your stories, pictures and videos to us now via WhatsApp: +2349055172167, Social Media @pulsenigeria247: #PulseEyewitness & DM or Email: eyewitness@pulse.ng. More information here.