Mohammed Shosanya
The House of Representatives has assured that it will collaborate with key stakeholders to safeguard depositors’ funds held at Heritage Bank, which recently had its operating license revoked by the Central Bank of Nigeria.
The Central Bank of Nigeria (CBN) had announced its decision to intervene with Heritage Bank, citing concerns over its financial performance.
In a statement released by the Acting Director of Corporate Communication, Sidi Ali, on Monday, the CBN highlighted the bank’s persistent decline despite regulatory oversight measures. In light of limited recovery prospects and to safeguard financial stability and public trust, the CBN has taken action to address the situation.
The House, through its spokesman Akin Rotimi, acknowledges the revocation of Heritage Bank’s license and the appointment of the Nigeria Deposit Insurance Corporation as liquidators, as per the Banks and Other Financial Institutions Act.
“We want to reassure the public, especially Heritage Bank’s depositors and stakeholders, that the House is fully dedicated to fulfilling its constitutional oversight responsibilities. Our aim is to ensure that this situation does not harm Nigerians. The pertinent House Committees on Banking Regulations and Insurance will diligently investigate the circumstances surrounding this decision and scrutinize the actions taken by the NDIC.”
“Our priority is to protect the interests of all depositors and uphold the stability of the financial system. We will collaborate closely with the CBN, NDIC, and other pertinent stakeholders to ensure a transparent and structured resolution process, offering essential support to minimize any potential adverse effects on the public.”
“We call upon the CBN and NDIC to establish transparent communication channels, reassuring the public and safeguarding trust in our financial system. Effective engagement with the public is essential for sustaining confidence during this time,” the statement emphasized.
The statement quoted the Chairman, Committee on Banking Regulations, Mohammed El-Rufai as saying “The committee 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.”
Besides,Hon Ahmed Jaha, Chairman of the Committee on Insurance and Actuarial Matters, emphasized that:”Our commitment to overseeing the NDIC’s effective execution of its mandate. We are dedicated to safeguarding depositors’ funds and upholding confidence in the financial sector. The NDIC Act and the Banks and Other Financial Institutions Act explicitly mandate the insurance and protection of depositors’ funds, a responsibility we take seriously.
The lawmakers urged all depositors and stakeholders to remain calm and be assured of its dedication to protecting their interests.
