Breaking: No Plan To Close Banks, Sack CEOs- CBN

The Central Bank of Nigeria, CBN has denied report that it plans to close some deposit money Banks in the country over ongoing naira swap crisis.

 Reports surfaced recently that the Godwin Emefiele-led CBN is unhappy with the manner some commercial banks have handled the demonetisatiom of the old naira notes for new ones.

Instructively,  the apex bank is said to be frustrated with reports that some banks are hoarding the new notes, and have refused to released them to their customers leading to serious  cash crisis across the country.

Some banks have since shut down operations, and others have managed to open with public anger breathing hard on them.

Just last week  during a meeting with 36 state governors on how to mitigate the cash crisis President  Muhammadu Buhari accused commercial banks of hampering government’s  efforts to remove the scarcity of the new naira notes of the N200, N500 and N1000.

Also, Emefiele had subtly threatened banks allegedly playing games with the distribution  of the new banknotes, prompting some people to suggest that the apex bank was planning to sanction some banks. In fact, the CBN was said to be considering sanctioning some bank chief executives whose officials were caught hoarding the new notes.

Reacting in a statement  on Saturday, the CBN said it has no such plans, that all it efforts are geared towards resolving the crisis that emanated from its Naira Redesign and Swap policy.

In the statement signed by Osita Nwanisobi, Director, Corporate Communications, the CBN stated that it was illogical to think that it will take an action not in conformity with the nation’s  banking rules.

The CBN also debunked report that Emefiele informed the Council of State  on Friday,  that the naira scarcity is as a result of failure of the Nigerian Security and Minting Company, NSPMC to meet the printing order from the CBN, and that the apex is now forced to print the new notes abroad to balance  the shortfall.

The CBN stated: “The attention of the Central Bank of Nigeria (CBN) has been drawn to a misleading report misquoting the Governor, Mr. Godwin Emefiele, as attributing the current challenge in the distribution of the newly redesigned naira banknotes to a shortage of printing materials at the Nigerian Security Printing and Minting Company Plc.

“We wish to state categorically that at no time did the CBN Governor disclose this during his presentation to the National Council of State at its meeting on Friday, February 10, 2023.

“For the records, what Mr. Emefiele told the meeting was that the NSPMC was working on printing all denominations of the Naira to meet the transaction needs of Nigerians.

“While the CBN appreciates the concerns shown by all stakeholders about the distribution of the Naira, we are alarmed at the extent to which vested interests are attempting to manipulate facts and pitch the public against the Bank.

“For the avoidance of doubt, the CBN remains committed to performing its monetary policy functions, as stipulated in the CBN Act, 2007, as amended. We also wish to restate that the NSPMC has the capacity and enough materials to produce the required indent of the Naira.

“The Bank, therefore, wishes to appeal to the public to disregard the said report and exercise more restraint, even as we work assiduously to increase the circulation of the new notes in the country.

“Similarly, there is a misleading voice note trending in social media alleging that the CBN planned to shut down some banks, particularly in a particular geo- political region of the country.

“We wish to state unequivocally that there is no such plan and that the claims are illogical and do not comply with the workings of the Nigerian banking system. The public is therefore advised to ignore such recordings as they do not represent the policy thrust of the CBN and are only the desperate attempts of persons bent on inciting the public against the Bank.”

We wish to state unequivocally that there is no such plan and that the claims are illogical and do not comply with the workings of the Nigerian banking system. The public is therefore advised to ignore such recordings as they do not represent the policy thrust of the CBN and are only the desperate attempts of persons bent on inciting the public against the Bank.

Meanwhile,  not a few Nigerians are anxiously waiting for next Wednesday when the Supreme Court is expected to make a final pronouncement on whether the old nair notes remain a legal tender.