As the recent revocation of Heritage Bank’s operating license by the Central Bank of Nigeria continues to attract reaction, the 2023 Labour Party presidential candidate, Peter Obi has called for immediate action to protect depositors and maintain confidence in the banking system.
Obi on Monday acknowledged the regulators’ affirmation that the revocation was necessary to enhance financial stability but emphasized the far-reaching impact it will have on Heritage Bank’s depositors.
Citing the harsh economic realities facing the country, Obi urged the Federal Government, through the Nigeria Deposit Insurance Corporation, to ensure the immediate payment of all depositors in full.
He highlighted the plight of individual savers and small and medium-sized enterprises, SME’s, who are already contending with severe economic hardships and depend on their savings in the now-liquidated bank for survival.
Obi warned that any attempt to deny or delay payment to these depositors could worsen their economic woes and lead to a crisis of confidence in the banking system.
The CBN had on Monday revoked Heritage Bank’s operating license and subsequently appointed NDIC to liquidate its assets.
CBN’s acting Director of Corporate Communication Department, Sidi Ali the decision was made due to the bank’s failure to improve its financial performance, posing a threat to financial stability.