The Central Bank of Nigeria, CBN, has cautioned deposit money banks against sourcing capital from illicit channels as part of the ongoing recapitalisation exercise, stressing that such actions could destabilise the financial system.

Speaking at the 36th Finance Correspondents Association of Nigeria and Business Editors seminar held in Abuja on Monday, the Director of Banking Supervision at the CBN, Dr Olubukola Akinwunmi, said the apex bank would enforce strict verification processes to ensure compliance.

“We ensure there is proper verification. And the verification is to ensure that we do not encourage illicit funds into our banking system. Illicit funds can only destabilise the banking system,” Akinwunmi stated.

The recapitalisation initiative, which commenced on April 1, 2024, is expected to run for 24 months and aims to strengthen banks’ capacity to support Nigeria’s $1tn economy target.

Under the new framework, international commercial banks are required to raise their minimum capital to N500bn, while national and regional banks must meet thresholds of N200bn and N50bn, respectively.

Akinwunmi explained that the recapitalisation exercise was designed not just to meet regulatory requirements but to prepare the sector for emerging economic and global challenges.

“The recapitalisation is also about strengthening the financial system for the future. Larger capital bases translate to greater capacity to fund high-impact sectors such as infrastructure, manufacturing, and agriculture,” he added.

Also speaking, the CBN Deputy Governor, Ms Emem Usoro, underscored the strategic importance of a robust banking sector in achieving national economic ambitions.

“We must consider the recapitalisation of our banks to be able to fund, finance and power the economy and favourably compete globally with its peers in other climes,” she said.

Usoro noted that the recapitalisation effort is a proactive response to evolving global financial dynamics and a critical step toward building a resilient, globally competitive financial system.

The CBN emphasised that banks could explore various options to meet the new capital requirements, including mergers, public offers, and strategic foreign investments, while maintaining regulatory oversight and transparency.

Three men were on Friday arraigned before an Abeokuta Magistrates’ Court sitting in Isabo for allegedly forging a Central Bank of Nigeria (CBN) enrollment and employment document.

The defendants, James Bamidele, 65, Joseph Awolope, 29, and Sesan Adebayo, whose addresses were not provided, are facing a two-count charge of conspiracy and forgery.

The prosecutor, SP Henry Obiaze, told the court that the defendants conspired and committed the offences within the magisterial division, sometime between July 2024 and March.

Obiaze alleged that the defendants forged a CBN enrollment letter dated March 1, with reference numbers 005/1529 and 005/1429, with which he used to defraud several job seekers.

He also said the defendants allegedly forged an appointment letter dated July 22, 2024, with reference number 009/CBN/Vol.2/GDS, to defraud several job seekers.

According to him, the offences contravene Sections 516, and 467 of the Criminal Code, Laws of Ogun State, 2006.

The defendants pleaded not guilty to the charges.

The Magistrate, Mrs Olubanke Odumosu-Akeba, granted bail to the defendants in the sum of N2.5 million each with two sureties each in like sum.

She ordered that one of sureties must be a traditional ruler, who must reside within the court’s jurisdiction.

She added that the defendants must submit their international passports and passport photographs to the court.

She, however, held that the defendants be remanded in a correctional centre, pending the perfection of their bail, and adjourned the case until April 24 for hearing (NAN)

The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to commence the payment of the first tranche of liquidation dividends to depositors of Heritage Bank starting this April. This follows the revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria (CBN) on June 3, 2024.

Managing Director of NDIC, Mr. Bello Hassan, made this known on Wednesday, April 9, during the NDIC Special Day at the 36th Enugu International Trade Fair. He was represented by Mrs. Pamela Robert, the South-East Coordinator of the NDIC.

Hassan reaffirmed the Corporation’s commitment to financial system stability, stating that the NDIC is working closely with the CBN to ensure strict adherence to banking regulations and effective oversight of insured deposit-taking institutions. He disclosed that preparations for the payment of the first tranche of liquidation dividends to Heritage Bank depositors had already commenced.

He assured depositors that the NDIC possesses the financial and operational capacity to reimburse all affected customers as asset recoveries are made. The approach, he said, involves paying insured deposits while simultaneously recovering loans and realising bank assets to ensure no depositor is left behind.

Hassan noted that the NDIC has a strong track record in bank liquidation, having successfully paid full liquidation dividends to depositors of 20 previously failed banks. This, he said, demonstrates the Corporation’s dedication to depositor protection and its effectiveness in managing bank failures.

He encouraged depositors of the closed Heritage Bank who are yet to receive payments to provide the necessary documentation, including their Bank Verification Number (BVN) and an alternate bank account number. Claims can be submitted via the NDIC website, email, social media platforms, or by visiting any zonal office.

Highlighting the swift response to Heritage Bank’s licence revocation, Hassan said the NDIC began the liquidation process immediately and paid insured deposits—up to a maximum of N5 million per depositor—within four days. He noted that most depositors were paid using their BVN to identify alternate bank accounts.

However, he explained that some depositors are yet to receive payments due to issues such as the absence of BVNs or alternate bank accounts, Post-No-Debit (PND) restrictions, Know Your Customer (KYC) limitations, or name mismatches. Some depositors, he added, may also be unaware of the payments due to a lack of transaction alerts.

President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), Chief Odeiga Jideonwo, commended the NDIC for its role in stabilising the financial sector. He called for improved compensation levels for depositors in failed banks, urging the NDIC to consider raising the percentage of money paid based on each customer’s total deposit.

Jideonwo also appealed to the CBN to strengthen its regulatory framework to reduce the incidence of bank failures and shield depositors from the trauma of losing access to their funds.