Addressing the recent revocation of Heritage Bank’s operating license by the Central Bank of Nigeria, the 2023 Labour Party presidential candidate, Peter Obi, called for immediate action to protect depositors and maintain confidence in the banking system.
In a statement via X on Monday, Obi acknowledged the
regulators’ affirmation that the revocation was necessary to enhance financial
stability but emphasised the far-reaching impact it will have on Heritage
Bank’s depositors.
“The latest CBN’s revocation order on Heritage Bank’s
operating license and subsequent appointment of NDIC as liquidator of its
assets though affirmed by the regulators as necessary at this point to enhance
financial stability, has a far-reaching impact on the bank’s depositors,” he
stated.
Citing the harsh economic realities facing the country, Obi
urged the Federal Government, through the Nigeria Deposit Insurance
Corporation, to ensure the immediate payment of all depositors in full.
“I will urge the federal government via NDIC to ensure immediate
payment of all depositors in Heritage Bank in full to help alleviate the
prevailing hardship the people are going through in the country,” he said.
Obi highlighted the plight of individual savers and small
and medium-sized enterprises (SMEs), who are already grappling with severe
economic hardships and depend on their savings in the now-liquidated bank for
survival.
“Many individual savers and SMEs are already groaning under
severe negative effects of the economy and already living in abject poverty.
These depositors depend on the savings they have in the now-liquidated bank to
survive,” he added.
Obi warned that any attempt to deny or delay payment to
these depositors could worsen their economic woes and lead to a crisis of
confidence in the banking system.
“Any attempt to deny
or delay payment to these depositors would worsen their economic woes and could
lead to a crisis of confidence in the banking system,” he cautioned.
Emphasising the state of the nation’s economy, Obi stressed
the importance of maintaining public trust in the financial system.
“Anything short of immediate and full payment can create
panic in the banking sector which our already fragile economy cannot afford. On
no account should the actions of government through the CBN destabilize the
financial system or shake public confidence in the integrity of the system,” he
asserted.
On Monday, the CBN revoked the banking licence of Heritage
Bank Plc, effective immediately.
This decision was made due to the bank’s failure to improve
its financial performance, posing a threat to financial stability. The apex
bank’s Acting Director of Corporate Communication Department, Sidi Ali,
disclosed this in a statement.
Consequently, the NDIC said it has commenced the liquidation
of Heritage Bank Plc.
NDIC assured all that it would pay depositors of the failed
bank N5 million insured deposits.
The corporation’s Director of Communication and Public
Affairs, Bashir Nuhu in a statement on Monday, said the liquidation is in
accordance with Section 55 Sub-sections 1 & 2 of the NDIC Act 2023.
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