Banks assure smooth recapitalisation, dismissing claims of impending closures as misleading and harmful to public confidence

Nigerian banks on Monday in Lagos assured customers and investors that the ongoing recapitalisation exercise will be concluded seamlessly and without any negative impact on the stability of the banking system, dismissing claims that several banks face liquidation or takeover.

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The assurance was given by the Association of Corporate Communication and Marketing Professionals in Banks, whose President, Mr Rasheed Bolarinwa, and General Secretary, Mr Jide Sipe, said no bank is under threat, contrary to claims made in a viral social media video.

The association said the Instagram video, which alleged that 12 banks would be shut down by the Central Bank of Nigeria by March 2026, was misleading and deliberately crafted to stir panic among the public.

The banks described the claims as reckless misinformation aimed at exploiting fear for personal gain.

According to the association, the content creator behind the video demonstrated a fundamental misunderstanding of banking recapitalisation, making assertions that were easily disproved by existing regulatory disclosures and public data from the Central Bank of Nigeria.

Mr Bolarinwa said the recapitalisation programme is a forward looking and proactive policy introduced by the Central Bank to strengthen the banking sector and enable it to support the Federal Government’s ambition of building a one trillion dollar economy by 2030.

He stressed that the exercise is not a crisis response and does not signal distress within the system.

The association noted that Nigerian banks remain safe, sound, and adequately capitalised, with strong buffers to meet customer obligations and regulatory requirements.

It clarified that the recapitalisation focuses on strengthening core ownership capital rather than other instruments such as bonds or preference shares.

The banks said all institutions submitted recapitalisation plans to the Central Bank in 2024, which were vetted and approved before implementation.

They added that more than one third of the banks have already met their targets, while others are at advanced stages, with the regulator expressing satisfaction with the progress made.

Addressing specific claims, the association said FirstBank, United Bank for Africa, Fidelity Bank, and FCMB have made significant progress and are well positioned to complete their recapitalisation ahead of schedule.

It added that Citibank Nigeria and Standard Chartered Bank Nigeria remain strong subsidiaries of global parents, while Sterling Bank has completed key phases of its programme.

The association warned that it would draw the attention of law enforcement agencies to content that borders on false representation and economic sabotage, emphasising that freedom of expression must be exercised with responsibility.

The Central Bank Governor, Mr Olayemi Cardoso, had earlier said in November 2025 that the recapitalisation exercise is progressing in an orderly manner and in line with regulatory expectations, adding that developments indicate the process is moving in the right direction.

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The banks urged Nigerians to continue their banking activities with confidence, stating that the country’s 44 deposit taking banks remain under strict regulatory oversight and that a resilient banking system ultimately serves the public interest.