In response to the recent revocation of Heritage Bank’s operating license by the Central Bank of Nigeria, Peter Obi, the 2023 Labour Party presidential candidate, has called for immediate action to safeguard depositors and uphold confidence in the banking sector.
Obi, acknowledging the necessity of the regulators’ decision to enhance financial stability, emphasized the profound impact on Heritage Bank’s depositors. He urged the Federal Government, via the Nigeria Deposit Insurance Corporation (NDIC), to expedite the full payment of all depositors to alleviate the prevailing economic hardships.
Highlighting the plight of individual savers and SMEs, Obi underscored their dependency on savings in the now-liquidated bank for survival. He cautioned against any delay or denial of payment, warning of exacerbating economic woes and a potential crisis of confidence in the banking system.
Related NewsHeritage Bank’s License Revoked by CBN Due to Financial Issues
Emphasizing the fragile state of the nation’s economy, Obi stressed the imperative of maintaining public trust in the financial system. He asserted that anything short of immediate and full payment could incite panic and destabilize the financial sector.
The CBN’s decision to revoke Heritage Bank’s license was attributed to its failure to improve financial performance, posing a threat to financial stability. Consequently, the NDIC has initiated the liquidation process, assuring depositors of reimbursement up to N5 million, in accordance with the NDIC Act 2023.
