BUSINESS
Banks Dismiss Viral Claims of Imminent Shutdowns, Reaffirm Stability as Recapitalisation Progresses Smoothly
Nigeria’s banking industry has moved swiftly to allay public concerns over a viral social media claim alleging imminent bank closures, assuring customers and stakeholders that the ongoing recapitalisation exercise is proceeding seamlessly and without any threat of liquidation or forced takeover.
Banks stated yesterday that contrary to alarmist claims pushed by a crowd-chasing content creator, no Nigerian bank is under distress, as institutions across the sector continue to implement recapitalisation plans already approved by the Central Bank of Nigeria (CBN).
The Association of Corporate Communication & Marketing Professionals in Banks (ACAMB), the umbrella body for spokespersons of Nigerian banks, described as false and misleading an Instagram video alleging that 12 banks would be shut down by the CBN by March 2026. According to the association, the video was a deliberate attempt to misinform the public, generate panic, and exploit fear for personal gain.
ACAMB said the content creator behind the video demonstrated a fundamental misunderstanding of banking recapitalisation, making claims that are easily disproved by anyone familiar with the Nigerian financial system. The association added that such narratives pose risks to financial stability and public confidence.
In a statement jointly signed by ACAMB President, Mr. Rasheed Bolarinwa, and General Secretary, ‘Jide Sipe, the banks reiterated that the recapitalisation exercise is not a response to crisis, but a strategic policy designed to strengthen the financial system and position banks to support Nigeria’s long-term economic ambitions.
“It is not a crisis response, nor is it an indication of distress. Rather, it is a patriotic call for banks to scale up their capacity to drive economic growth and development.
“Contrary to the false claims circulating online, Nigerian banks are currently safe, sound and adequately capitalised, with strong capital adequacy buffers sufficient to meet both customer obligations and regulatory requirements. The recapitalisation initiative focuses specifically on strengthening core ownership capital—namely share capital and share premium—rather than total shareholders’ funds or other capital instruments such as bonds and preference shares.
“The CBN has consistently emphasised that the exercise is aimed at growth and stability, not forced consolidation. All banks have a fair and realistic chance of meeting their recapitalisation targets, with more than one-third already having met theirs and most others at advanced stages of implementation. All banks submitted recapitalisation plans to the CBN in 2024, which were vetted and approved for feasibility before execution commenced. In its most recent assessment, the CBN publicly expressed satisfaction with the progress made and reaffirmed that banks are on track to meet the stipulated deadlines,” ACAMB stated.
The association warned that the misinformation being circulated was baseless and driven by ignorance and mischief, with potentially damaging consequences for the economy.
“ACAMB will draw the attention of relevant law-enforcement agencies to this and similar content, particularly where it borders on false representation, economic sabotage and violations of the Cybercrime Act. While freedom of expression is guaranteed, it carries corresponding responsibilities of truthfulness, accuracy and fairness.
“Although the entire content of the video is misleading and click-bait driven, specific claims against certain banks deserve clarification. FirstBank, United Bank for Africa (UBA), Fidelity Bank and FCMB are international banks that have made significant progress in their recapitalisation programmes and are well positioned to complete them ahead of schedule. They have exceeded the capital thresholds for national banks and face no risk of undercapitalisation.
“Citibank Nigeria and Standard Chartered Bank Nigeria remain strong subsidiaries of their respective global parents, while Sterling Bank has completed key phases of its recapitalisation, including private placement and rights issues. Polaris Bank and other institutions mentioned also have clear recapitalisation pathways and remain operationally sound, with no indication of financial distress,” ACAMB stated, responding directly to claims made by one Olaoluwa Segun, who operates under the Instagram handle “Olaoluwa_olas”.
Backing the banks’ position, CBN Governor, Mr. Olayemi Cardoso, had earlier reassured the public during his November 2025 briefing that the recapitalisation programme was unfolding in line with regulatory expectations.
The exercise, Cardoso said, “is progressing in an orderly manner and in line with regulatory expectations.”
He added: “We are monitoring developments, and indications show the process is moving in the right direction”.
ACAMB further reminded Nigerians that the country currently has 44 deposit-taking banks operating under strict regulatory oversight, stressing that customers remain the ultimate beneficiaries of a resilient and well-regulated banking system.
“Nigerians remain the ultimate beneficiaries of a resilient and well-regulated banking system, and the public is urged to continue their banking activities with confidence and without fear.
“ACAMB also cautions content creators and media organisations against chasing click-bait, trends or sensationalism around reputable financial institutions. Accurate, responsible reporting is welcome and protected; however, deliberate misinformation or panic-inducing narratives around the banking sector will be reported to the appropriate authorities in the interest of financial stability and public trust,” the association stated.