Defunct Heritage Bank’s customers with deposits of ₦5million and above have cried out to the National Assembly to prevail on the Central Bank of Nigeria (CBN) to refund their deposits.
The aggrieved depositors made the appeal in a petition to the legislature, saying their livelihoods and businesses are in distress due to non-payment of their money.
According to them, despite previous assurances from the apex bank that the bank was not in distress, they were left stranded with the revocation of its licence and have not been able to access their funds.
This predicament, they said, had caused them economic hardship with businesses shutting, life savings crumbling and daily expenses coming to a standstill.
“Some depositors have died from heart attacks, while others are hospitalised. We are at a loss, and our families are suffering.
“We are perplexed by the action exhibited by the CBN after Unity Bank merged with Providus Bank, which ensured a smooth transition for depositors. We are aware that a major commercial bank was paid ₦460billion for its deposits in Heritage Bank before its liquidation.
“Why should we be treated differently, subjected to an everlasting process to recover our funds from the sale of Heritage Bank’s properties?” They asked.
The depositors appealed to the National Assembly to “intervene by advising CBN to pay depositors in full without further delay. Advise that a few other banks absorb the depositors while ensuring a smooth transition as was done in the case of Unity Bank and Providus Bank.
“Utilise Heritage Bank’s reserve ratio to settle depositors’ claims. Treat depositors equally as was done with First Bank and verify NDIC’s claim of paying the insured sum to 85 per cent of depositors and ensure prompt payment to all eligible depositors.”
The depositors further proposed that the CBN should extend a loan to the NDIC to facilitate the prompt settlement of their claims, stating that the loan would enable NDIC to immediately pay them out, thereby alleviating their financial distress.
“We expect that the principal amount of the loan would be recuperated through the eventual disposal of Heritage Bank’s assets.
“This approach would ensure a seamless recovery process, minimising the risk of further financial instability and by extending this, the CBN would be supporting the stability of the financial system, protecting depositors’ funds, and promoting confidence in the banking sector,” they said.
On June 3, last year, the apex bank revoked Heritage Bank’s licence and enabled the Nigeria Deposit Insurance Corporation (NDIC) to take over the bank’s assets and liabilities.
The NDIC said it had been intensified efforts to ensure timely payments.
In a statement signed by its acting Head, Communications and Public Affairs, Hawwau Gambo, NDIC said significant progress had been made in reimbursing the insured deposits of the N5 million maximum per depositor, adding that those in this category of not yet to be paid either didn’t have Bank Verification Number (BVN), alternate accounts in other banks, post no debit (PND) restrictions or other glitches.
To the depositors with N5million and above balances, the NDIC said the excess of the insured N5 million already reimbursed would be paid as liquidation dividends in accordance with the corporation’s statutory mandate.
“The NDIC has made substantial progress in disposing the assets and recovering some of the debts of the failed bank to ensure that depositors with balances above the maximum insured limit receive their payments as soon as possible. “As a clear demonstration of this commitment, the corporation commenced the realisation of physical assets and investments as well as aggressive recovery of the risk assets, concurrently with the verification and payment of insured sums.
“To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, and major national newspapers, as well as through radio and television announcements.
“The corporation’s approach of simultaneously paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.
“With the considerable progress recorded in the asset realisation, the corporation will declare the first tranche of liquidation dividends in April 2025, which will be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023 on the priority of claims.
“For clarity, the referenced section states that: “Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institutions shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.”
“Consequently, other claimants of the failed Heritage Bank, including creditors, and shareholders, will be considered for payment of liquidation dividends only after all depositors have been fully reimbursed.
“The NDIC wishes to reiterate its commitment to the safety of depositors’ funds in all licensed banks. Members of the public are enjoined to continue their banking activities without fear, as all other banks remain safe and sound,” it said.
Credit: thenationonlineng.net
