Nigeria: CBN Refutes Rumors of License Revocations for Unity, Polaris, and Keystone Banks

The Central Bank of Nigeria (CBN) has refuted reports alleging plans to revoke the licenses of Unity Bank, Keystone Bank, and Polaris Bank.

An online report had claimed that the CBN intended to revoke the licenses of these three banks, following the recent revocation of Heritage Bank’s license.

The CBN, via its official X account on Tuesday, dismissed the report as false. “The content is fake and not from the CBN,” the post read.

According to the CBN, this decision was driven by the bank’s persistent failure to improve its financial performance, which posed a threat to the stability of Nigeria’s financial sector.

A statement from the CBN partly reads: “The Central Bank of Nigeria, in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, hereby revokes the license of Heritage Bank Plc with immediate effect.

“This action has become necessary due to the bank’s breach of Section 12(1) of BOFIA, 2020. The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.”

The CBN’s clarification aims to reassure the public and stakeholders about the stability and soundness of Nigeria’s banking system.