Abandoned Heritage bank depositors send S.O.S to President Tinubu over delayed payment

Depositors of N5m and above in the revoked Heritage Bank have sent a save-our-souls plea to President Ahmed Tinubu to prevail on the Central Bank of Nigeria, CBN, to provide immediate bailout funds to the Nigeria Deposit Insurance Corporation (NDIC) to ensure the swift and full reimbursement of all depositors affected by the liquidation of the bank. 

Spokesperson for the depositor, Ibrahim Elisha told re[porters that, “it is glaringly evident that the NDIC lacks the capability to execute this crucial task, even after the full liquidation of the defunct bank’s assets sating that their recent official statement further confirms this reality, seemingly prompted by media reports that exposed the dire situation.

Thee depositors noted that ten months have passed since the liquidation, yet depositors continue to face uncertainty, vain promises, and a glaring lack of financial resolution. According to them, the NDIC has now openly declared that depositors will be paid on a pro-rata basis—an unacceptable approach that suggests severe funding limitations. This is not a viable solution, especially given the precedent set by past interventions in the banking sector.

“The CBN has historically provided bailout funds to financial institutions in times of distress, as demonstrated in key instances like: N460 billion allocated to First Bank on behalf of Heritage Bank before its liquidation, Facilitation of the Providus Bank and Unity Bank merger to stabilize both entities, N700 billion financial support granted to Unity Bank, enabling its eligibility for a merger with a regional bank. (This assistance was provided with favorable repayment terms, including a five-year moratorium and a 15-year repayment plan at an unprecedented 12.5% interest rate, significantly lower than prevailing rates), and the recent acquisition of Keystone Bank’s shares and control by the CBN to salvage its financial distress. “

They stated that “given this history of intervention, it is incomprehensible that the CBN would allow the current situation to fester without swift and decisive action. The NDIC has commenced the process of verification and payment to insured depositors, but partial payments are inadequate. Full reimbursement must be prioritized. Delaying this bailout risks crippling public confidence in the Nigerian banking system, triggering widespread distrust in financial institutions, and creating unnecessary hardship for individuals who placed their faith in banking assurances.

Deposit-holders, they said, continued to trust Heritage Bank largely due to the CBN’s assurances of its stability. The abrupt liquidation—without an adequate plan to protect depositors—sets a dangerous precedent and undermines Nigeria’s financial credibility. To safeguard the integrity of Nigeria’s financial sector, prevent further erosion of trust, and reaffirm banking stability, the CBN must act now.

“Time is of the essence, and prolonged inaction will only deepen the crisis and smear the good image of FGN in general and the CBN in particular before the global banking community who is watching this matter with interest. The Presidency and National Assembly must intervene immediately to direct the CBN to mobilize bailout funds for affected depositors, they stated.