Peter Obi Urges FG To Ensure Immediate Payment To All Heritage Bank Depositors

Peter Obi, the 2023 Labour Party presidential candidate, has called for the immediate payment of Heritage Bank depositors following the recent revocation of the bank’s operating license by the Central Bank of Nigeria (CBN)

In a statement released via X on Monday, Obi highlighted the significant impact the revocation will have on the bank’s depositors.

He urged the Federal Government to ensure prompt and full payment to all depositors through the Nigeria Deposit Insurance Corporation (NDIC), emphasizing the challenging economic conditions in the country.

“The latest CBN revocation order on Heritage Bank’s operating license and the subsequent appointment of NDIC as the liquidator of its assets, though deemed necessary by regulators to enhance financial stability, has far-reaching implications for the bank’s depositors,” Obi stated.

He stressed the importance of immediate action to prevent further hardship for individual savers and small and medium-sized enterprises (SMEs) who depend on their savings in the now-liquidated bank. Obi warned that any delay or denial of payments could exacerbate their financial difficulties and undermine confidence in the banking system.

“Many individual savers and SMEs are already suffering from severe economic hardships and rely on their savings in Heritage Bank for survival. Any attempt to delay or deny payments would worsen their economic woes and could trigger a crisis of confidence in the banking system. Immediate and full payment is essential to prevent panic in the sector, which our fragile economy cannot afford. The government, through the CBN, must ensure stability and maintain public confidence in the financial system,” Obi asserted.

The CBN, through its acting Director of Corporate Communications, Hakama Sidi Ali, issued a statement on Monday expressing concern about the failure of Heritage Bank’s Board and Management to improve its financial performance, which posed a threat to financial stability.

Ali stated, “Regrettably, the bank has continued to suffer without reasonable prospects of recovery, making the revocation of the license necessary.”

Following this, the NDIC announced the commencement of Heritage Bank Plc’s liquidation and assured depositors that it would reimburse up to N5 million in insured deposits.