Heritage Bank Depositors Call on National Assembly to Intervene in CBN’s License Revocation

Maryam Aminu

Depositors with N5 million and above in the recently liquidated Heritage Bank have appealed to the National Assembly for urgent intervention, urging the Central Bank of Nigeria (CBN) to reconsider its decision. Many affected customers say they are facing severe financial distress, with businesses collapsing and livelihoods at risk due to their inability to access their funds.

In a strongly worded appeal, the depositors expressed frustration over what they see as an abrupt revocation of Heritage Bank’s license, despite previous assurances from the CBN that the bank was financially stable.

They described the situation as a trigger for widespread economic hardship, with reports of some depositors suffering fatal heart attacks and others hospitalized due to stress-related conditions.

Questioning the handling of the revocation, the depositors pointed to the smoother transitions seen in similar cases, such as the Unity Bank-Providus Bank merger.

They also raised concerns over reports that First Bank had withdrawn N460 billion from Heritage Bank before its liquidation, wondering why their case was being treated differently.

Calling for immediate action, the depositors urged lawmakers to ensure they are fully reimbursed without delay.

They proposed that other banks absorb affected depositors, mirroring the Unity Bank-Providus Bank approach, and suggested using Heritage Bank’s reserve ratio to settle depositor claims.

Additionally, they challenged the Nigeria Deposit Insurance Corporation’s (NDIC) claim that 85% of depositors had received the insured sum. They demanded independent verification of this claim and called on the CBN to extend a loan to the NDIC to facilitate immediate payouts.

They argued that this approach would protect depositors, restore confidence in the banking system, and prevent further financial instability.

The crisis stems from the CBN’s decision on June 3, 2024, to revoke Heritage Bank’s license over financial instability and regulatory breaches, leading to the NDIC taking over its assets and liabilities. However, many depositors insist they were blindsided by the move and now look to the National Assembly for swift intervention.