Customers have expressed significant concerns following the revocation of Heritage Bank’s operational license by the Central Bank of Nigeria (CBN) on Monday, June 3, 2024.
The decision has caused apprehension among depositors, fearing potential losses of their funds.
Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, in an exclusive interview with newsmen described the situation as placing customers in a financial predicament.
He highlighted that the revocation means customers might not recover all their deposits.
The CBN, through Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, cited the bank’s continued financial struggles and lack of recovery prospects as reasons for the revocation. “Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step,” Ali stated.
Ogunbunka explained that customers of Heritage Bank may face partial refunds. “It will affect all customers, which means that there is no longer Heritage Bank. Anybody that has money in the bank won’t be able to access their funds any longer, pending when NDIC will take over the bank according to the law.”
The Nigeria Deposit Insurance Corporation (NDIC) will oversee the liquidation process and decide the percentage of deposits to be refunded to customers. Ogunbunka added, “If the bank had money to continue, CBN wouldn’t have revoked their license. They have run aground whatsoever with the deposit they have. Unfortunately, this is not the best time for anybody to have a financial crisis.”
Heritage Bank, which was formerly Societe Generale Bank (Nig.) Limited (SGBN), began operations in January 2013 after receiving a license from the CBN in December 2012. The current situation leaves many of its customers uncertain about the fate of their savings and underscores the broader concerns about financial stability in Nigeria’s banking sector.
