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By Christopher Oji
Depositors of N5m and above in the revoked Heritage Bank have appealed to the National Assembly to prevail on the Central Bank of Nigeria(CBN), to reconsider the revocation of the bank as it has left them in a state of financial distress with their livelihoods and businesses hanging in the balance.
In a passionate appeal, the depositors lamented that despite previous assurances from the CBN that the bank was not in distress, they have been left stranded, unable to access their funds.
The situation, according to them, has led to widespread economic hardship with businesses shutting down, life savings crumbling, and daily expenses coming to a standstill.
They claimed that, “Some depositors have died from heart attacks, while others are hospitalized. We are at a loss, and our families are suffering.
“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 N460b 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?
The depositors requested that the National Assembly should use its good office to intervene and assist in resolving the issue.
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“We plead that you intervene by advising CBN to pay all depositors in full without further delay. Advise that a few other banks absorb the depositors while ensuring a smooth transition as was done in the case of Unity Bank and Providus Bank.
“Utilize Heritage Bank’s reserve ratio to settle depositor’s 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.”
The depositors further proposed that the CBN extend a loan to the NDIC to facilitate the prompt settlement of their claims, stating that the loan would enable NDIC to immediately pay out depositors, thereby alleviating their financial distress.
“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 depositor’s funds, promoting confidence in the banking sector,” they stated.
On June 3, 2024, the CBN revoked Heritage Bank’s license, enabling the Nigeria Deposit Insurance Corporation (NDIC) to take over the bank’s assets and liabilities. Despite previous assurances from the CBN that Heritage Bank was not in distress, depositors have been left stranded, unable to access their funds.
