Fresh concerns have emerged over the pace of liquidation payments to customers of the defunct Heritage Bank Plc, with affected depositors alleging unfair treatment and regulatory inconsistency by financial authorities.
In a petition submitted to the Central Bank of Nigeria (CBN) and copied to the Presidency as well as the National Assembly, the group criticised what it described as a sluggish and inadequate reimbursement process nearly two years after the bank’s closure. According to the petitioners, most depositors have so far recovered only 14.2 per cent of their uninsured funds, leaving a large portion of savings inaccessible.
The depositors detailed that an initial liquidation dividend of 9.2 per cent was disbursed in April 2024, followed by a second tranche of five per cent paid recently. They characterised the payment timeline as slow and insufficient, warning that the current approach is inflicting significant financial strain on individuals and businesses alike.
Many of those affected, the group noted, include small business owners, retirees and civil servants who depended on the bank for savings and operational funds. The prolonged delay in accessing their deposits has reportedly led to severe economic hardship, with some struggling to meet basic financial obligations.
The petition further expressed concern about the long-term implications of the process, stating that the likelihood of full recovery diminishes over time due to the impact of inflation and the time value of money.
Calling for immediate action, the depositors urged the apex bank to provide financial support to the Nigeria Deposit Insurance Corporation (NDIC) to accelerate the repayment process. They argued that the NDIC, as the liquidator, may lack the financial capacity to complete the exercise within a reasonable timeframe without additional backing.
The group also pointed to past interventions by the CBN in troubled financial institutions, including liquidity injections, regulatory-led mergers and outright takeovers, noting that such measures helped protect depositors and maintain stability in the banking sector. In contrast, they said the handling of Heritage Bank’s collapse appears to deviate from established precedent.
Additionally, the petition raised concerns about the potential erosion of public trust in the financial system. It recalled that prior to the bank’s closure, regulatory assurances had indicated that the institution remained stable—encouraging customers to retain their deposits. The subsequent liquidation, without a clear and comprehensive reimbursement framework, has been described as a development that could undermine confidence in banking institutions.
The depositors are now calling on both the Presidency and the National Assembly to intervene by establishing a clear timeline for repayments, ensuring full reimbursement of funds, and initiating an investigation into the circumstances that led to the bank’s failure.
They also demanded accountability measures, including the prosecution of any individuals found culpable of mismanagement or financial misconduct linked to the bank’s collapse.
The group warned that continued delays could deepen economic hardship for affected households and businesses, while also sending negative signals to investors about the stability and reliability of Nigeria’s financial system.