Heritage Bank License Revocation: Extant Legislation Ensures Safety of Depositors’ Funds

….Urges CBN/NDIC to set up channels for public engagement

By Chris Udochukwu

ABUJA – The House of Representatives has reacted to the recent revocation of the license of Heritage Bank (under liquidation) by the Central Bank of Nigeria (CBN) and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidators, in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA).

House of Reps therefore assured the public, particularly depositors and stakeholders of Heritage Bank, that it is committed to carrying out its constitutional oversight functions to ensure that this development does not negatively impact Nigerians, adding that the relevant House Committees on Banking Regulations; and Insurance will be up to their duty, thoroughly examining the circumstances surrounding this decision and the subsequent steps taken by the NDIC.

The statement signed by the
House Spokesman/Chairman, House Committee on Media & Public Affairs, Rep. Akin Rotimi, Jr. made available to Precise Post, noted that Reps priority is to safeguard the interests of all depositors and maintain the stability of the financial system. We will engage with the CBN, NDIC, and other relevant stakeholders to ensure a transparent and orderly resolution process, providing necessary support to mitigate any potential negative impact on the public.

Furthermore, we urge the CBN and NDIC to establish clear channels of communication to allay the fears of the public and prevent any loss of trust in our financial system. Effective public engagement is crucial to maintaining confidence during this period.

Chairman of the House Committee on Banking Regulations, Rep. Mohammed Bello El-Rufai, stated, “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, the Chairman of the House Committee on Insurance and Actuarial Matters, Rep. Ahmed Usman Jaha, emphasised, “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.”

It also urged all depositors and stakeholders to remain calm and be assured of House of Reps dedication to protecting their interests.

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