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Time is of the essence,” the group stressed. “Every delay compounds the hardship and weakens faith in the system.”

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3 months ago

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Trapped Funds, Fading Trust: Heritage Bank Depositors Demand Urgent CBN Bailout

By Ifeoma 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.

Trapped Funds, Fading Trust: Heritage Bank Depositors Demand Urgent CBN Bailout By Ifeoma Ikem   

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.

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Sahara weekly online is published by First Sahara weekly international. contact [email protected]

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Fidelity Bank grows gross earnings by 38% to N434.95b in Q1

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3 days ago

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May 27, 2026

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Fidelity Bank grows gross earnings by 38% to N434.95b in Q1

 

Fidelity Bank Plc recorded 37.9 per cent growth in gross earnings to N434.95 billion in first quarter 2026 as the international commercial bank continued to expand its core banking market share.

 

Interim report and accounts of Fidelity Bank for the three months ended March 31, 2026 released at the Nigerian Exchange (NGX) showed that gross earnings rose from N315.42 billion in first quarter 20025 to N434.95 billion in first quarter 2026, representing an increase of 37.9 per cent.
The top-line performance was driven by impressive growth in the bank’s core business operations with interest incomes rising by 22.8 per cent to N314.48 billion in first quarter 2026 as against N256.10 billion in first quarter 2025.

 

With net interest income at N180.97 billion, the bank closed the period with profit before tax of N92.48 billion. After taxes, net profit stood at N74.47 billion for the three-month period. Earnings per share remained high at N5.69, underlining the capacity of the bank to reward its shareholders.

 

 

The balance sheet of the bank also emerged stronger. Total assets crossed the N11 trillion mark to N11.35 trillion by March 2026 compared with N10.46 trillion recorded in December 2025. Customers’ deposits increased from N6.89 trillion to N7.38 trillion. Total equity rode on the back of earnings growth to a 27.5 per cent increase from N1.09 trillion in December 2025 to N1.39 trillion by March 2026.

 

 

The first quarter 2026 results further consolidated the strong earnings outlook of the bank, which had successfully completed its recapitalisation amidst impressive earnings performance in 2025.
Fidelity Bank had recorded double-digit growths in interest and non-interest incomes as well as key balance sheet items during the year ended December 31, 2025.

 

 

The audited report showed that gross earnings rose from N1.04 trillion in 2024 to N1.52 trillion in 2025, an increase of 45.6 per cent. Interest and similar incomes had grown by 38.7 per cent from N803.1 billion in 2024 to N1.11 trillion in 2025. Fees and commission incomes also rose by 44.7 per cent from N78.4 billion to N113.4 billion. The bank recorded net profit after tax of N242.4 billion in 2025.

 

 

The bank’s balance sheet emerged stronger with total assets rising by 18.6 per cent to N10.46 trillion in 2025 as against N8.82 trillion in 2024. Customer deposits increased by 16.1 per cent from N5.94 trillion to N6.89 trillion, reflecting continued franchise strength and an improved funding profile. Net loans and advances meanwhile declined by 2.4 per cent to N4.28 trillion in 2025 as against N4.39 trillion in 2024, attributable to customers paying down on their mature obligations.

 

 

The bank had in 2025 strengthened its capital position, with eligible capital rising to N561 billion, above the regulatory minimum of N500 billion for banks with international authorisation. In addition, capital adequacy had remained robust, with Capital Adequacy Ratio of 30.94 per cent by December 2025 as against 23.47 per cent by December 2024.

 

Managing Director, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, said the first quarter 2026 results reinforced the bank’s strong and resilient business model.

 

She noted that with the remarkable success of its recapitalisation programme and continuing expansion, Fidelity Bank has entered a new era of growth and impressive returns.

 

“We are on a stronger footing and confident that we will set new growth records that are reflective of our legacy and the future we are working on,” Onyeali-Ikpe said.

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Dangote Refinery Ends Nigeria’s Era of Fuel Import Dependence, Boosts GDP, FX Earnings — EIU

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4 days ago

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May 26, 2026

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NLC Commends Dangote Refinery, Urges FG to Sell Adequate Crude in Naira to Reduce Fuel Prices

Dangote Refinery Ends Nigeria’s Era of Fuel Import Dependence, Boosts GDP, FX Earnings — EIU

The operational ramp up of the 650,000 barrels per day Dangote Petroleum Refinery & Petrochemicals is fundamentally reshaping Nigeria’s downstream oil sector, significantly reducing the country’s dependence on imported refined petroleum products and strengthening its external position, according to the Economist Intelligence Unit (EIU).

In its latest assessment on Nigeria’s fuel market and regulatory environment, the EIU said the refinery has already transformed a sector that was previously characterised by heavy reliance on imported fuel despite Nigeria being Africa’s largest crude oil producer. The report noted that the refinery met nearly 80 per cent of domestic petrol demand in April and produced enough volumes to satisfy local consumption requirements as operations approached full capacity.

The EIU described Nigeria’s downstream petroleum sector before the refinery as “long dysfunctional”, noting that the country had remained almost entirely dependent on costly imported fuel while producing nearly 1.5 million barrels of crude oil daily.

According to the report, the emergence of the refinery has reduced import dependence, improved domestic fuel availability and strengthened Nigeria’s balance of payments position through lower import demand and rising exports of refined petroleum products.

“The gradual ramp up of the 650,000 barrel/day Dangote refinery since May 2023 has transformed Nigeria’s long dysfunctional downstream sector,” the report stated. “The country’s main refineries, all state owned, had been inoperative for years and Nigeria was almost entirely reliant on costly imported fuel.”

The research and analysis division of The Economist Group, London added that the refinery’s attainment of full operational capacity and its planned expansion would further support Nigeria’s economic growth and foreign exchange earnings over the medium term.

“Meanwhile, the attainment of full capacity at, and an increase in exports from, the Dangote refinery will support real GDP growth and foreign exchange earnings in 2026 and 2027 and beyond, as a planned doubling of the plant’s output comes on stream around the end of the decade,” it added.

Industry analysts said the refinery is increasingly positioning Nigeria as an emerging refining and export hub, altering energy trade flows across Africa and reducing the vulnerability associated with fuel import dependence.

The EIU noted that the refinery’s expansion has coincided with major reforms in Nigeria’s downstream sector, including the removal of fuel subsidies and the introduction of market driven pricing mechanisms.

The report, however, said the transition from a state dominated fuel import structure to large scale domestic refining has triggered resistance from interests linked to the old import regime.

The latest tensions emerged following the decision by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to relax restrictions on petrol imports despite the refinery’s growing capacity to meet domestic demand.

Dangote Industries subsequently initiated legal action, arguing that continued import approvals undermine domestic refining investments and conflict with the objectives of the Petroleum Industry Act, which seeks to encourage local refining capacity and reduce import dependence.

Analysts noted that the availability of large-scale domestic refining capacity has improved Nigeria’s energy security and reduced exposure to external supply shocks and foreign exchange volatility.

The Centre for the Promotion of Private Enterprise also cautioned against unrestrained importation of petroleum products, warning that such a policy could weaken Nigeria’s industrialisation drive and discourage investments in domestic refining.

Chief Executive Officer of CPPE, Muda Yusuf, said continued dependence on imported fuel had historically contributed to pressure on foreign reserves, exchange rate instability and fiscal leakages.

The refinery’s growing impact is also being reflected in Nigeria’s broader macroeconomic indicators. Earlier this month, S&P Global Ratings cited increased domestic refining capacity and rising hydrocarbon exports among the major factors supporting Nigeria’s sovereign credit rating upgrade – the first in 14 years.

Beyond Nigeria, analysts said the refinery is increasingly being viewed as a strategic industrial asset for Africa, where many countries remain heavily dependent on imported fuel despite rising demand for transportation, manufacturing, and power generation.

 

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Business

BREAKING: Court Dismisses $19.6 Million Claim Against NNPCL — Rules Contract Scope Cannot Be Changed Orally

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5 days ago

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May 25, 2026

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BREAKING: Court Dismisses $19.6 Million Claim Against NNPCL — Rules Contract Scope Cannot Be Changed Orally

 

In a landmark ruling on Friday, May 22, 2026, the Federal Capital Territory High Court in Abuja threw out a $19.6 million lawsuit filed by Alternate Dimensions Ventures Ltd against the Nigerian National Petroleum Company Limited (NNPCL), affirming a key legal principle: a written contract cannot be expanded through oral agreements or conduct.

Alternate Dimensions had sought $19,600,000 in professional fees, claiming the scope of its Direct Sale, Direct Purchase (DSDP e-pro) contract with NNPCL was orally expanded. Represented by counsel Patrick Peter, the firm argued it was entitled to the revised sum for services rendered under the alleged new terms.

But NNPCL, through its lawyer Ituah Imhanze of KENNA LP, pushed back sharply, arguing that parties are bound exclusively by the clear terms of their written agreement. Imhanze contended that without any written amendment, the claim was legally unsound, and the court agreed.

Delivering judgment, Justice Hamza Mu’azu upheld NNPCL’s defense, stating that the contract was unambiguous and that no evidence was adduced during the trial, which supported the alleged scope expansion. The court further found that NNPCL fully complied with all contractual terms and committed no breach.

Dismissing the suit as meritless, Justice Mu’azu reinforced the doctrine of sanctity of contract: any amendment to a written agreement must be express, unequivocal, and documented, not implied or verbal.

The ruling spares NNPCL from the S19.6 million claim and also a floodgate of similar potential liabilities.

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