By Tricia Ikem
Nearly two years after the collapse of Heritage Bank, thousands of depositors say they are still living with the financial and emotional aftershocks of a liquidation they insist was never meant to end this way. What began as regulatory reassurances has, in their view, spiralled into prolonged uncertainty, partial payments, and mounting hardship, thus prompting a fresh and urgent appeal to President Bola Tinubu and the Governor of the Central Bank of Nigeria, Olayemi Cardoso, to intervene decisively.
In a strongly-worded statement issued in Lagos, the depositors framed their demand not simply as a financial request but as a test of the country’s commitment to safeguarding public trust in its banking system. They are asking the Central Bank to provide immediate bailout funds to the Nigeria Deposit Insurance Corporation (NDIC) to enable full reimbursement of all affected customers, arguing that the pace of recovery so far has been painfully slow and grossly inadequate.
According to them, while insured deposits up to ₦5 million were covered under statutory provisions, payments beyond that threshold (known as liquidation dividends) have amounted to just 14.2 percent of their total balances in nearly two years. The first tranche of 9.2 percent was paid in April 2024. A second installment of 5 percent followed recently. For many, that has been the extent of relief.
At this rate, they argue, the mathematics simply does not inspire confidence.
“These are not abstract figures,” one depositor said. “They represent school fees, retirement savings, working capital for small businesses, cooperative funds, and life savings built over decades.” Among those affected, they say, are civil servants, retirees, entrepreneurs, and families whose livelihoods have been upended by the prolonged wait.
What deepens their frustration, they contend, is the memory of official assurances given before the bank’s collapse. When signs of distress first emerged, depositors recall that the Central Bank publicly and privately reassured customers that their funds were safe and that the institution remained sound. Those assurances, they say, influenced their decision not to withdraw their savings at the time.
The eventual liquidation therefore came as a shock, both financially and psychologically. “We trusted the regulator,” the group noted. “Between the Central Bank and the NDIC, we were told our funds would be repaid 100 percent.”
It is that promise, they argue, that must now be honored in full.
While acknowledging that the NDIC has begun verification and payment processes, the depositors insist that the agency lacks the financial capacity to conclude the exercise within a reasonable timeframe. They point to the scale of total deposits — estimated at about ₦650 billion — and the fact that only around ₦54 billion has been paid out in 18 months. In their view, that ratio raises serious questions about whether the liquidation process, left solely to asset recovery, can realistically guarantee timely reimbursement.
The group also referenced previous instances in which the Central Bank stepped in to stabilize distressed institutions, arguing that regulatory precedent supports intervention. They cited the reported ₦460 billion facility linked to Heritage Bank before its collapse, as well as substantial financial support extended to other banks to facilitate mergers or recapitalization. In one example, they noted, a ₦700 billion support package reportedly enabled a struggling bank to qualify for a merger, with favorable repayment terms that included a five-year moratorium and extended repayment window at below-market interest rates. They also referenced regulatory intervention in Keystone Bank as evidence that decisive action is possible when systemic stability is at stake.
Given that history, they say, it is difficult to understand why a direct bailout to protect depositors is not being prioritized.
Beyond financial restitution, the depositors are also calling for accountability. They demanded a thorough investigation and immediate prosecution of any individuals or entities found culpable of asset diversion, mismanagement, or actions that may have contributed to the bank’s collapse. To them, justice is as important as compensation.
They argue that without visible consequences, public confidence in the banking system could erode further. “The integrity of the financial sector rests not only on liquidity, but on accountability,” one stakeholder said. “If people believe that funds can disappear without consequences, trust collapses.”
The broader concern, they warn, is systemic. Nigeria has not witnessed a full commercial bank liquidation in over two decades, as troubled institutions have typically been resolved through mergers, acquisitions, or regulatory restructuring. Many depositors therefore assumed that a similar pathway would apply in this case. Instead, they say, liquidation has exposed gaps in depositor protection mechanisms.
They also question the broader insurance framework, noting that banks have paid premiums to the NDIC for years precisely to safeguard depositors. If recovery remains this limited, they argue, the protective purpose of that insurance scheme comes under scrutiny.
For small business owners, the implications have been severe. Some report shutting down operations due to frozen capital. Others speak of properties sold under distress or retirement plans abruptly altered. The social cost, they insist, is real and growing.
At the heart of their appeal is a request for clarity. They want a clear, binding timeline for completion of the liquidation process and a transparent roadmap outlining how and when full repayment will occur. Without that, they fear that partial dividends will continue indefinitely, eroded by inflation and the time value of money.
They have also urged the Presidency and the National Assembly to step in, arguing that the matter transcends a single bank and touches on Nigeria’s financial credibility before the global community. Prolonged uncertainty, they warn, risks signaling regulatory inconsistency at a time when the country seeks to attract investment and deepen financial inclusion.
For the depositors, the issue is no longer simply about numbers on a ledger. It is about confidence in regulators, in institutions, and in the promise that money kept within the formal banking system is secure.
They believe the Central Bank must now assume full responsibility for resolving what they describe as a crisis of trust. Whether through direct financial support to the NDIC, accelerated asset recovery, or a hybrid intervention model, they insist that swift action is essential.
“Time is of the essence,” the group stressed. “Every delay compounds the hardship and weakens faith in the system.”
In a nation striving to strengthen its financial architecture and restore economic stability, the resolution of the Heritage Bank liquidation may well become a defining test — not only of regulatory capacity, but of the enduring covenant between citizens and the institutions entrusted with their savings.
