Precious Ugwuzor 

Depositors with funds of N5 million and above in the now-defunct Heritage Bank have appealed to the National Assembly to urgently intervene in the revocation of the bank’s license by the Central Bank of Nigeria (CBN). They lamented that the sudden closure has left them in financial distress, with their businesses and livelihoods hanging in the balance.

In a strongly worded and passionate appeal, the depositors expressed frustration over the CBN’s earlier assurances that the bank was not in distress, only to later revoke its license, leaving them stranded and unable to access their funds.

The depositors detailed the widespread economic hardship caused by the situation, citing business closures, loss of life savings, and difficulty meeting daily expenses.

“Some depositors have died from heart attacks, while others are hospitalized. We are at a loss, and our families are suffering,” they stated.

They also questioned the CBN’s handling of the revocation, comparing it to the merger of Unity Bank and Providus Bank, which allowed for a smooth transition for depositors.

“We are perplexed by the action exhibited by the CBN after Unity Bank merged with Providus Bank, which ensured a smooth transition of depositors. We are aware that First Bank was paid N460 billion of its deposits in Heritage Bank before its liquidation. Why should we be treated differently, subjected to an everlasting process to recover our funds from the sale of Heritage Bank’s properties?” they queried.

The depositors urged the National Assembly to intervene and advise the CBN to ensure that all depositors are fully paid without delay. They proposed a similar approach to the Unity Bank and Providus Bank merger, where other financial institutions absorb the affected depositors to facilitate a seamless transition.

“Utilize Heritage Bank’s reserve ratio to settle depositors’ claims. Treat depositors equally as was done with First Bank and verify NDIC’s claim of paying the insured sum to 85% of depositors and ensure prompt payment to all eligible depositors,” they demanded.

To expedite the resolution, the depositors suggested that the CBN extend a loan to the Nigeria Deposit Insurance Corporation (NDIC) to facilitate the immediate settlement of depositors’ claims.

“We expect that the principal amount of the loan would be recuperated through the eventual disposal of Heritage Bank’s assets.

“This approach would ensure a seamless recovery process, minimizing the risk of further financial instability, and by extending this, the CBN would be supporting the stability of the financial system, protecting depositors’ funds, and promoting confidence in the banking sector,” they stated.

On June 3, 2024, the CBN revoked Heritage Bank’s license, granting the NDIC authority to liquidate the bank’s assets and liabilities. However, despite previous assurances from the apex bank that Heritage Bank was not in distress, depositors remain unable to access their funds, leading to growing frustration and financial hardship.