Central Bank Governor, Godwin Emefiele has urged Nigerians not to panic concerning the fragile state of the country’s banking industry.
With the IMF forecasting a 1.8 percent contraction in the economy this year, the immediate prospects for the banking sector are grim but Emefiele still believes that the financial system remained solid.
“The strategic health of the Nigerian banking or financial system remains strong at this time. There is no need for anybody to begin to panic or worry that any bank is in distress,” he said after an MPC meeting during the week.
“Depositors of banks, please, please endure. We appeal to you: go about your business. You will not lose your deposits in any bank.”
However, his soothing words, which followed a rush by depositors to withdraw funds from Skye earlier this month, may have the opposite effect, especially after police in May raided three banks – Access, Fidelity and Sterling – as part of a probe into alleged illegal transactions.