Following the Central Bank of Nigeria’s (CBN) decision to revoke Heritage Bank’s license, minority shareholders are demanding an investigation into the bank’s management and directors. The license revocation, announced by CBN, cited violations of Section 12 (1) of BOFIA 2020 and concerns over the bank’s ongoing financial instability.
The CBN’s statement explained that despite supervisory efforts to rectify the bank’s financial decline, Heritage Bank failed to show any prospects of recovery, leading to the license revocation and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as liquidator under Section 12 (2) of BOFIA 2020.
Boniface Okezie, National Coordinator of the Progressive Shareholders Association, emphasized the need for a thorough investigation to restore confidence in the banking sector. He criticized the CBN for not acting sooner and questioned the role of the Asset Management Corporation of Nigeria (AMCON), suggesting it should have intervened earlier. Okezie also highlighted the negative impact on depositors, pointing out that partial reimbursements until liquidation is complete would discourage bank usage.
Okezie further raised concerns about the overall health of other banks, urging transparency and accountability. He called for the management of Heritage Bank to be held responsible for the bank’s failure, noting that in other countries, such accountability is standard.
Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria, echoed the need for a probe, arguing that without accountability, similar failures could recur. He supported the CBN’s regulatory actions but criticized the delay in addressing the bank’s insolvency. Igbrude suggested that a better approach might have been to replace the bank’s management with a CBN-led team to stabilize the bank and protect depositors, ultimately allowing for a sale to Nigerian investors.
Bisi Bakare, President of the Pragmatic Shareholders Association, supported the CBN’s decision but acknowledged the adverse effects on shareholders, emphasizing the need for a resolution that protects depositors while addressing the broader implications for the banking sector.
Victoria Ibiama
