No bank in Nigeria will shut down over CBN recapitalization – ACAMB
The Association of Corporate Communication and Marketing Professionals in Banks (ACAMB) has assured Nigerians that no bank in the country will shut down due to recapitalisation requirements, contrary to claims circulating on social media.
The assurance was contained in a joint statement issued on Sunday by ACAMB President, Mr. Rasheed Bolarinwa, and General Secretary, Mr. Jide Sipe.
The statement is sequel to an Instagram video alleging that 12 banks would be shut down by the Central Bank of Nigeria (CBN) by March 2026 for failing to meet capital requirements.
The group described the video as misleading and alarmist, accusing its creator of attempting to stoke panic and exploit misinformation for personal gain.
“The content creator demonstrated a fundamental lack of understanding of banking recapitalisation, making several erroneous and misleading assertions that are easily disprovable by anyone with basic knowledge of the Nigerian banking sector,” the statement said.
The association noted that the recapitalisation exercise is a proactive policy designed to strengthen the banking system and support the Federal Government’s aspiration of building a $1 trillion economy by 2030.
“As repeatedly explained by the CBN, the recapitalisation exercise is a forward-looking, proactive policy designed to strengthen the banking system. 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,” ACAMB noted.
Contrary to the false claims, ACAMB stressed that 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, it added, focuses on strengthening core ownership capital—share capital and share premium—rather than total shareholders’ funds or other instruments such as bonds and preference shares.
ACAMB noted that all banks submitted recapitalisation plans to the CBN in 2024, which were vetted and approved for feasibility before execution
started.
“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. 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,” the association said.
The statement clarified specific claims against certain banks, noting that FirstBank, United Bank for Africa (UBA), Fidelity Bank, and FCMB are international banks that have exceeded capital thresholds and face no risk of undercapitalisation.
It added that Citibank Nigeria and Standard Chartered Bank Nigeria remain strong subsidiaries of their global parents, while Sterling Bank has completed key phases of recapitalisation, including private placement and rights issues. Polaris Bank and other institutions mentioned also have clear recapitalisation pathways and remain operationally sound.
ACAMB recalled that CBN Governor, Mr. Olayemi Cardoso, had stated in November that the recapitalisation exercise “is progressing in an orderly manner and in line with regulatory expectations.”
The association emphasized that Nigeria’s 44 deposit-taking banks across various licence categories continue to operate under strict regulatory oversight, ensuring stability and resilience.
The association condemned the spread of false narratives, describing them as “baseless and driven by mischief, ignorance, and reckless disregard for the economic consequences of misinformation.”
It said it would draw the attention of law enforcement agencies to such content, particularly where it borders on false representation, economic sabotage, and violations of the Cybercrime Act.
While acknowledging freedom of expression, ACAMB stressed that it carries responsibilities of truthfulness, accuracy, and fairness.
“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 statement added.
The association urged Nigerians to continue their banking activities with confidence, assuring that the recapitalization process is designed to strengthen the sector and deliver long-term benefits to the economy.
