Home News Finance CBN and NDIC Face Criticism Over Heritage Bank Liquidation as Depositors Demand Full Refund
FinanceNews

CBN and NDIC Face Criticism Over Heritage Bank Liquidation as Depositors Demand Full Refund

603

The Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation (NDIC) have come under fire from Heritage Bank depositors following the revocation of the bank’s operating license by the Central Bank of Nigeria (CBN).

Customers, including a young lawyer, Chikodi Okeorji, have expressed outrage over the NDIC’s decision to offer a maximum statutory insurance payment of N5 million per depositor.

The lawyer said he had deposited N17 million in Heritage Bank and lamented that the NDIC’s insurance coverage is inadequate and will leave many poor Nigerians and small businesses with significant losses.

He criticised the NDIC’s promise to pay the remaining funds after liquidation, stating that it is unlikely to materialise.

Depositors have also questioned the CBN’s decision to allow Heritage Bank to fail, citing the central bank’s previous interventions in cases like Skye Bank, where the Polaris Bank bridge bank structure ensured that depositors did not lose any funds.

Many customers have expressed disappointment in the CBN’s failure to keep its promise of never allowing banks to fail again.

The NDIC’s actions have raised concerns about the erosion of public faith in the banking system and financial stability.

Depositors argue that the CBN’s decision to revoke Heritage Bank’s license, despite its supervisory role, has shaken confidence in the regulatory framework.

Despite the House of Representatives’ pledge to engage with relevant stakeholders to ensure the safety of depositors’ funds and maintain financial system stability, the House Committee on Banking Regulations said it would closely monitor the liquidation process to protect depositors’ rights and ensure transparency.

However, this assurance seems not to pacify many depositors, who are worried about their funds and the refund process after liquidation.

Read; Naira Left Out Of IMF’s June Currency List

About The Author

Related Articles

Malian Army ISIS Dahdah
News

Malian Army Kills Foreign ISIS Leader, Abu Dahdah, in Ménaka Region Raid

The Malian armed forces, in collaboration with their partners, killed a senior...

Togolese Protesters Faure Gnassingbé
News

Togolese Youth Continue Protests Despite Government Ban, Demand End to Faure Gnassingbé’s Rule

The youth of Togo continue to protest against President Faure Gnassingbé’s prolonged...

News

Fast Fashion’s Dumping Ground: How West Africa Is Drowning in Second-Hand Clothing Waste

Every week, massive shipping containers filled with used clothing arrive at West...

Human RightsNews

Togolese Protesters Tear-Gassed in Their Homes as Uprising Demands President’s Resignation

Togolese youths have taken to the streets in a three-day demonstration, demanding...