The Central Bank of Nigeria (CBN) has cleared the N400 billion debt owed to First Bank by the now-defunct Heritage Bank, according to First Bank and sources close to the matter. “First Bank had exited the exposure and CBN settled the Bank,” stated Ismail Omamegbe, First Bank’s corporate communications manager.
Thank you for reading this post, don't forget to subscribe!In 2018, First Bank discovered a significant discrepancy with Heritage Bank, with N200 billion in unpaid cheques. The situation posed a financial risk to First Bank, leading to intervention by Godwin Emefiele, then CBN Governor, who promised a central bank guarantee on behalf of Heritage Bank.
However, by 2020, the promised guarantee was not provided, and the debt had increased to N300 billion. Despite reassurances from First Bank’s then-Managing Director, Adesola Adeduntan, the absence of a formal guarantee led to tensions that culminated in the board’s dismissal by Emefiele.
On Monday, the CBN revoked Heritage Bank’s license due to its financial instability, with 90% of its active loan portfolio classified as lost or doubtful. The bank’s collapse has left depositors awaiting insured payments and liquidation dividends.
