By Babajide Okeowo
Following the revocation of the operating license of the Heritage Bank Plc by the Central Bank of Nigeria on Monday, Peter Obi, the Labour Party’s presidential candidate from the last election, has urged the federal government and the Nigeria Deposit Insurance Corporation (NDIC) to immediately fully reimburse depositors of the collapsed bank.
This is even as he raised an alarm that the collapse of the bank will have “a far-reaching impact” on the economy.
Obi made this known in a series of X posts on Monday.
READ ALSO: Heritage Bank’s Collapse: Here Is What’s Next
The Matrix reports that the apex bank revoked the banking licence of Heritage Bank Plc with immediate effect, citing the bank’s persistent financial instability and breach of regulatory requirements.
The decision was part of the CBN’s mandate to maintain a sound financial system in Nigeria, as outlined under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
In a press release on Monday, the CBN disclosed that Heritage Bank had failed to adhere to Section 12 (1) of BOFIA 2020, which necessitated regulatory intervention.
Reacting to the development, Obi said many depositors, already perplexed by the economic condition of the country, depend on their savings in the bank to survive.
READ ALSO: CBN Revokes Heritage Bank License
According to him, anything short of full and immediate repayment of these funds will only worsen the economic situation of the depositors.
“The latest CBN’s revocation order on Heritage Bank’s operating license and subsequent appointment of NDIC as liquidator of its assets, though affirmed by the regulators as necessary at this point to enhance financial stability, has a far-reaching impact on the bank’s depositors.
“Given the harsh economic realities in the country now, I will urge the federal government via NDIC to ensure immediate payment of all depositors in Heritage Bank in full to help alleviate the prevailing hardship the people are going through in the country.
“Many individual savers and SMEs are already groaning under severe negative effects of the economy and already living in abject poverty. These depositors depend on the savings they have in the now-liquidated bank to survive.
“Any attempt to deny or delay payment to these depositors would worsen their economic woes and could lead to a crisis of confidence in the banking system.
“Anything short of immediate and full payment can create panic in the banking sector which our already fragile economy cannot afford,” Obi said.
