Reps address depositors’ fears over Heritage Bank license revocation

Leah TwakiJune 5, 20242 min

The House of Representatives has assured the safety of depositor’s funds following the revocation of Heritage Bank’s license by CBN.

Heritage bank licence revoked

The House of Representatives has assured the public of the safety of depositors’ funds following the Central Bank of Nigeria’s (CBN) decision to revoke Heritage Bank’s license and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidators as stipulated by the Banks and Other Financial Institutions Act (BOFIA).

The House urges the CBN and NDIC to establish clear communication channels to allay the public’s fears and prevent any loss of trust in the nation’s financial system. It adds that effective public engagement is crucial to maintaining confidence during this period.

These developments were contained in a statement signed by House Spokesman Rep. Akin Rotimi, Jr. on Monday.

Rotimi emphasized that the House is committed to fulfilling its constitutional oversight responsibilities, ensuring that the revocation and liquidation processes do not adversely affect Nigerians and that relevant House Committees, including those on Banking Regulations and Insurance, are set to scrutinize the events leading to the license revocation and the steps taken by the NDIC.

Highlighting the primary concern of protecting depositors and maintaining financial stability, the House would actively engage with the CBN, NDIC, and other stakeholders to facilitate a transparent and orderly resolution.

READ ALSO: Reps blow hot set to investigate CBN’s retrenchment of 600 employees

Rep. Mohammed Bello El-Rufai (APC Kaduna), Chairman of the House Committee on Banking Regulations, affirmed, “The Committee on Banking Regulations will closely monitor the liquidation process to ensure that the rights of depositors are protected and that the process adheres to the highest standards of transparency and accountability.”

Similarly, Rep. Ahmed Usman Jaha (APC Borno), Chairman of the House Committee on Insurance and Actuarial Matters, emphasized that “We will work diligently to oversee that the NDIC executes its mandate effectively, ensuring the protection of depositors’ funds and maintaining confidence in the financial sector. The NDIC Act and the Banks and Other Financial Institutions Act (BOFIA) are clear in their provisions that depositors’ funds are insured and protected.”

The House urged all Heritage Bank stakeholders and depositors to remain calm and reassure them of the bank’s dedication to protecting their interests.

Leah Twaki

A Chemistry graduate, excels as a social media manager, digital journalist, and content creator with an interdisciplinary skills blend of science and communication.

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