In a significant development, First Bank has successfully recovered a N456 billion loan extended to Heritage Bank, averting a potentially significant impairment charge. The recovery comes ahead of the Central Bank of Nigeria’s (CBN) decision to revoke Heritage Bank’s license due to its persistent financial instability and breach of regulatory requirements.
The loan, which was part of a bailout package arranged during the tenure of former CBN Governor Godwin Emefiele, had been a subject of concern for First Bank for several years. Efforts to recover the loan intensified as Heritage Bank’s situation worsened, culminating in a resolution earlier this year.
The successful recovery of the loan is a testament to First Bank’s strategic financial management and the timely intervention of regulatory authorities to maintain stability in Nigeria’s banking sector. The CBN’s decision to revoke Heritage Bank’s license was necessitated by the bank’s continued underperformance, which posed a significant threat to financial stability.
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation process of Heritage Bank Plc, and depositors are protected up to N5 million, depending on their deposits. The CBN has assured the public that the Nigerian financial system remains robust and resilient, and there are no plans to revoke the licenses of other banks.”
