Heritage Bank depositors cry out over refunds
By Ambrose Nnaji Depositors of the defunct Heritage Bank Plc have raised fresh concerns over the slow pace of liquidation payments, accusing the Central Bank of Nigeria (CBN) and the
By Ambrose Nnaji
Depositors of the defunct Heritage Bank Plc have raised fresh concerns over the slow pace of liquidation payments, accusing the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) of applying double standards in handling the bank’s collapse compared to previous interventions in the financial sector.
In a petition addressed to the CBN Governor and copied to the Presidency and the National Assembly, the depositors said nearly two years after the bank’s liquidation, most customers have received only 14.2 per cent of their uninsured deposits, leaving businesses, retirees and individuals struggling to survive.
The group said the first liquidation dividend of 9.2 per cent was paid in April 2024, while a second tranche of five per cent was paid recently, a pace they described as “disturbing, discouraging and financially devastating.”
According to the petition, many of the affected depositors are small business owners, civil servants and pensioners whose life savings remain trapped, resulting in severe economic hardship.
“At the current pace, it is doubtful that depositors will ever recover their full funds, especially considering the time value of money,” the group stated.
The depositors urged the apex bank to provide bailout funding to the NDIC to accelerate repayment, arguing that the insurance corporation lacks the capacity to conclude the liquidation within a reasonable time.
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They pointed to previous CBN interventions in distressed banks, including liquidity support, regulatory mergers and direct takeovers, which they said demonstrated that the regulator has the tools to prevent prolonged depositor losses.
The petitioners said the decision to liquidate Heritage Bank without a clear reimbursement plan has weakened public confidence in the banking system.
The depositors also recalled that before the bank was shut down, the CBN had issued assurances that the institution remained stable, which encouraged customers to keep their funds in the bank.
They argued that the sudden liquidation without full protection for depositors created a dangerous precedent that could erode trust in Nigeria’s financial system.
“Deposit-holders continued to trust the bank largely because of regulatory assurances. The abrupt liquidation without full reimbursement undermines the credibility of the banking sector,” the petition noted.
The group appealed to the Presidency and the National Assembly to intervene, requesting a clear repayment timeline, full reimbursement of deposits, and investigation into the circumstances surrounding the liquidation.
They also demanded prosecution of any individuals found responsible for mismanagement or diversion of assets.
According to the petition, delaying full repayment could damage confidence in Nigerian banks and discourage savings and investment.
“To safeguard the integrity of the financial system and restore public trust, decisive action must be taken immediately,” the depositors said.
They warned that prolonged inaction could worsen hardship for affected families and send negative signals to the global financial community about Nigeria’s banking stability.
