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The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) has called for a thorough investigation into the transactions and activities that led to the collapse of Heritage Bank PLC. The labour union also urged regulatory agencies to take necessary actions to recover debts and impose sanctions on any institutions or individuals found guilty.
ASSBIFI President Olusoji Oluwole issued a statement blaming the Central Bank of Nigeria (CBN) and other regulatory bodies for the bank’s failure and subsequent liquidation. He called for clear and practical steps to settle the entitlements of the bank’s workers.
“The recent CBN order revoking the operational license and liquidating Heritage Bank PLC did not surprise ASSBIFI,” Oluwole stated. “This situation could have been avoided if regulatory authorities had heeded the numerous warnings from staff, ASSBIFI, and the public regarding the plight of Heritage Bank.”
Oluwole recalled several instances where action could have been taken to prevent the collapse, including a 2021 incident where bank staff in Abuja attempted to recover unpaid debts from a prominent politician. In 2023, the union highlighted the dismissal of over 65 workers without adequate compensation under the guise of reorganization. Despite these alarms, no decisive actions were taken, leading to the bank’s eventual collapse on June 3, 2024.
The National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) also raised concerns in March 2024, yet no substantial actions were undertaken.
While not opposing the liquidation order, ASSBIFI expressed serious concern for the future of its members who have dedicated decades to the bank. “Their future now hangs in the balance, as there is no mention of plans to settle the workers in the CBN and NDIC publications and liquidation process,” Oluwole said. “We appeal that the predicament of our members is considered when payments are made to other depositors based on the harsh economic realities.”
ASSBIFI urged the CBN and other regulators to deeply investigate the transactions and activities that caused the collapse of Heritage Bank and apply sanctions where necessary. They also called for criteria for worker compensation and settlement to be included in the liquidation plan, considering the current economic crisis, hyperinflation, and high unemployment rates.
“The NDIC should factor into the liquidation plan criteria for compensation and settlement of the workers,” Oluwole concluded. “We cannot allow vulnerable workers, who have faithfully and committedly served the bank for decades, to be abandoned and left to face penury.”
