Heritage Bank customers cry out, urge National Assembly to intervene in CBN revocation

Depositors with N5 million and above in the recently revoked Heritage Bank have called on the National Assembly to urgently intervene in their plight, urging the Central Bank of Nigeria (CBN) to reconsider its decision.

Many of the affected customers say they have been thrown into severe financial distress, with their businesses and livelihoods now at risk due to their inability to access their funds.

In a passionate and strongly worded appeal, the depositors expressed their frustration, highlighting that despite previous assurances from the CBN that Heritage Bank was not in distress, they have now been left stranded. According to them, the sudden revocation of the bank’s license has triggered widespread economic hardship.

Many businesses have collapsed, life savings have crumbled, and even daily expenses have become a struggle.

Some depositors, they claim, have died from heart attacks brought on by the shock of losing access to their money, while others have been hospitalized due to stress-related conditions.

The affected depositors also questioned the handling of the revocation compared to similar cases in the banking sector.

They pointed out that when Unity Bank merged with Providus Bank, the transition was smooth for depositors.

Additionally, they alleged that First Bank had received N460 billion of its deposits in Heritage Bank before its liquidation, wondering why their case was being handled differently.

They lamented that they were now being subjected to what they described as an “everlasting process” of trying to recover their funds from the sale of Heritage Bank’s properties.

Appealing directly to lawmakers, the depositors urged the National Assembly to use its influence to resolve the crisis.

They called for an immediate intervention that would ensure all depositors are paid in full without further delay.

They proposed that other banks should absorb the affected depositors to ensure a seamless transition, similar to what was done in the case of Unity Bank and Providus Bank.

Additionally, they demanded that Heritage Bank’s reserve ratio be used to settle depositor claims.

The depositors also challenged the claims made by the Nigeria Deposit Insurance Corporation (NDIC) that 85% of depositors had received the insured sum.

They called for an independent verification of this claim and insisted on prompt payment to all eligible customers.

In another proposal, they urged the CBN to extend a loan to the NDIC to facilitate immediate payments, arguing that this move would help alleviate their financial suffering.

They emphasized that the principal amount of such a loan could be recovered through the eventual sale of Heritage Bank’s assets.

According to them, this approach would ensure a smooth recovery process and minimize further financial instability.

They stressed that by taking such a step, the CBN would not only be protecting depositors’ funds but also reinforcing confidence in the banking sector and ensuring overall stability in the financial system.

The crisis stems from the CBN’s decision on June 3, 2024, to revoke Heritage Bank’s operating license, citing financial instability and regulatory breaches.

This move authorized the NDIC to take over the bank’s assets and liabilities. However, many depositors argue that they were blindsided by the action, especially after the CBN had assured them that the bank was not in distress.

As frustration continues to mount, all eyes are now on the National Assembly to see whether urgent intervention will provide relief to those affected.