Customers of failed Heritage Bank Call on National Assembly to Intervene Over Unpaid Deposits

• Depositors at Heritage Bank with balances over N5 million have called on the National Assembly to intervene
• The depositors claim that the revocation has left them in a precarious financial position and threatened their businesses
• Depositors were upset that they couldn't access their money even after the CBN repeatedly assured them that the bank was doing well

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Heritage Bank depositors who have more than N5 million in deposits have urged the National Assembly to step in and help with the Central Bank of Nigeria's (CBN) decision on the bank's license.

According to the depositors in a Vanguard report, the revocation has put them in a difficult financial situation and left their companies and means of subsistence in jeopardy.

In a statement, the depositors expressed frustration that despite repeated assurances from the CBN that the bank was not in trouble, they have been unable to access their funds.

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How does this affect depositors?

The scenario, according to them, has led to widespread economic suffering with enterprises shutting down, life savings eroding, and daily costs coming to a standstill.

The statement reads,

“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 Band, 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?

“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.

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“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.”

Earlier, Legit.ng reported that the Nigeria Deposit Insurance Corporation (NDIC) said that it has successfully and transparently auctioned the defunct Heritage Bank’s assets, including landed properties and chattels.

Its managing director, Bello Hassan, disclosed during the corporation’s special day at the ongoing 46th Kaduna International Trade Fair, Kaduna.

He said the auction was in line with its statutory mandate under Section 62 (1)(d) of the NDIC Act, 2023.

“The proceeds from the ongoing sales would be applied towards settling depositors with balances above the insured limit of N5 million, with additional payments to follow as further recoveries are made,” he said.

Represented by the Kano Zonal Office Comptroller, Ahmad Umar, Hassan stated that NDIC was committed to ensuring a stable financial environment that safeguards depositors and builds public confidence.

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According to him, this is to enable businesses to thrive and contribute to the nation’s economic development.

NDIC speaks on shutting down more banks after Heritage

Legit.ng reported that Bello Hassan, the managing director of the Nigeria Deposit Insurance Corporation (NDIC), stated that the organization's goal is to continue liquidating failed banks without the need for court hearings and related litigation.

At a sensitization training for external solicitors in Abuja on Thursday, Hassan revealed the information. The event was tagged, “Consolidating Collaborative Efforts in Mastering the Deposit Insurance Scheme and Bank Resolution.”

Source: Legit.ng