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The financial sector was jolted on June 3 when Heritage Bank’s license revocation was announced, catching nearly everyone, including the bank’s 2,000 employees, off guard.
Despite long-standing speculation about a potential takeover, the sudden termination of operations stunned staff at the bank’s Victoria Island office. Six employees, speaking to TechCabal, expressed their shock and dismay.
“Nobody saw this coming. We were not informed at all. But it is well. I believe it is the will of God,” said a former account relationship officer, now unemployed.
Heritage Bank’s liquidity issues had been escalating since June 2023, leading to customer withdrawal restrictions. An ex-employee familiar with the situation explained that while some senior staff expected regulatory intervention, they did not foresee a complete liquidation.
“We thought the Central Bank would create a bridge bank to take over the administration and try to restore its operations to normalcy,” a senior employee told TechCabal.
The reality set in when NDIC officials arrived on June 3, initially mistaken for auditors due to a recent AML audit notice from the central bank. Employees were instructed to pack personal belongings and leave the premises, according to a worker from the Ajose branch. The unannounced visit was likely intended to prevent the removal of valuable items before the liquidation process commenced.
Employee salaries, deposited into Heritage Bank accounts, allowed some to withdraw their funds before the NDIC began processing withdrawals under N5 million on June 6. However, accessing these funds involved filling out forms at Heritage Bank branches or NDIC offices, a challenge for some due to lack of transport money.
The unexpected job loss followed earlier protests against job cuts across branches since March. “The bank terminated its contract with an outsourcing firm managing about 800 contract staff, some of whom had been with the bank for over a decade,” said a domestic union member. The job cuts appeared to be a cost-cutting measure ahead of the liquidation.
The layoffs impacted mainly drivers and tellers, forcing some to forfeit their pensions. Additionally, some full-time staff were demoted or relocated to other branches. The liquidation has now left all 2,000 employees without jobs.
“We were negotiating better compensation for affected employees before this happened,” said Jekwu, the chairman of the domestic union of Heritage Bank. “However, the bank is yet to address the current circumstances.”
In response to the sudden job losses, industry recruiters and colleagues have begun advertising vacancies in other banks to help the now unemployed Heritage Bank staff.
