Defunct Heritage Bank Customers Demand CBN Action on Funds Recovery

Customers of the collapsed Heritage Bank Plc are calling on the Central Bank of Nigeria (CBN) to hasten the recovery of their lost savings.

Recall that the CBN revoked the bank’s licence on June 3, 2024, citing persistent financial instability and repeated regulatory breaches under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

The sudden shutdown of Heritage Bank has left many depositors in dire straits, raising serious questions about the CBN’s regulatory oversight.

Despite assurances from the CBN just two months earlier about the stability of Nigerian banks, the collapse has resulted in widespread financial losses, leaving customers with no clear recourse.

Affected customers have expressed their frustration over the lack of communication from both Heritage Bank and the CBN.

“The silence from the defunct bank and the apex bank has made life miserable for us as our livelihood and upkeep are attached to our savings,” one customer lamented in a telephone interview with Starnews NG.

The collapse has sparked a wave of criticism directed at the CBN, with many questioning the regulator’s effectiveness.

The public’s frustration is compounded by the lack of accountability, as no individuals have been held responsible for the bank’s failure, despite the CBN’s previous assurances that no bank would be allowed to collapse.

Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) has acknowledged challenges in processing payments to former Heritage Bank customers.

NDIC Managing Director Bello Hassan explained that discrepancies in account names linked to Bank Verification Numbers (BVN) are causing delays.

Nonetheless, a substantial number of depositors have been paid since June 6, using BVN-linked alternate accounts in other banks.

“We have already commenced the payment of customers since June 6. We have paid a substantial amount to the customers. What we leverage in making the payment is the BVN of customers. We trace alternate accounts in other banks and pay them their insured amounts,” Hassan stated.

Hassan urged those who have not received their payments to visit the NDIC website to complete verification forms.

He also noted that depositors with amounts exceeding five million naira would receive a liquidation dividend from the sale of the bank’s physical assets and recovery of previous loans.

“We are not going to wait until we recover everything, no. As we recover, we will also advertise to say that we will pay liquidation dividends so that concerned depositors will be on the lookout for alerts in their accounts,” Hassan assured.


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