In the wake of the Central Bank of Nigeria’s (CBN) decision to revoke the license of Heritage Bank, calls for a thorough investigation into the bank’s management and directors have intensified as shareholders and industry observers express concerns over the circumstances leading to the bank’s failure.
The CBN announced the immediate revocation of Heritage Bank’s license, citing the bank’s breach of Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to the regulator, the inability of the bank’s board and management to improve its financial performance posed a threat to financial stability, necessitating the drastic action.
The decision to appoint the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of Heritage Bank further underscored the severity of the situation.
However, some members of the minority shareholders community have raised questions about the role of the bank’s management in the lead-up to its collapse.
Boniface Okezie, the National Coordinator of the Progressive Shareholders Association, emphasized the importance of holding the bank’s managers accountable to restore confidence in the banking sector.
Okezie questioned the efficacy of the regulatory oversight provided by the CBN and the Asset Management Corporation of Nigeria (AMCON) in preventing the bank’s insolvency.
He called for a comprehensive probe into the actions of the management, stressing the need to recover investors’ funds and learn from the bank’s collapse.
Similarly, Moses Igbrude, the National Coordinator of the Independent Shareholders Association of Nigeria, echoed the sentiment for a thorough investigation into the bank’s management.
Igbrude said there should be accountability and transparency in addressing the root causes of the bank’s failure to prevent similar incidents in the future. While acknowledging the regulatory authority of the CBN, Igbrude questioned the delay in taking decisive action and suggested alternative measures to salvage the bank without resorting to license revocation.
Bisi Bakare, the President of the Pragmatic Shareholders Association, acknowledged the CBN’s decision as necessary but expressed concerns about the impact on shareholders. Bakare highlighted the need to prioritize the interests of depositors while ensuring accountability for the bank’s collapse.
The growing chorus of voices calling for a probe into Heritage Bank’s management underscores the urgency of addressing systemic weaknesses in Nigeria’s banking sector.
As regulators and stakeholders navigate the aftermath of the bank’s closure, restoring trust and confidence in the financial system remains paramount.