From Societe Generale to Heritage Bank: I almost committed suicide – Customer

A customer with the defunct Heritage Bank, Obisesan Bayo, has narrated his ordeals operating an account with the defunct bank.

Narrating his experience in an interview with PREMIUM TIMES on Monday, Mr Bayo said he started banking with the bank from its days as Societe Generale Bank of Nigeria, (SGBN) and opened an account in 1999.

According to him, he once attempted suicide when the bank became distressed and was forced to close shop following its inability to meet the Central Bank of Nigeria (CBN) recapitalisation policy requirement in 2004.

“Yes, I was banking with SGBN, I was operating a current account having about three hundred thousand naira in my account and one day (I think that was around 2003) I needed to pay my children school fees, I issued a cheque to withdraw the sum of fifty thousand naira (N50,000) and was paid only ten thousand naira (N10,000).

“I was traumatised and the journey began. I almost committed suicide. Terrible experience, when you have your entire sweat hanging in a politician’s bank,” Mr Obisesan said.

The now troubled Heritage Bank has its roots in Societe Generale Bank founded in the 1970s by Olusola Saraki, a second republic senator and father of Bukola Saraki, a former president of the Nigerian Senate.

In 2004, the Olusegun Obasanjo administration sought to fiscally strengthen banks against collapses that were frequent up till the time the former president assumed office.

In January 2006 during the re-capitalisation policy in the banking sector, SGBN was closed down by the CBN after it failed to meet the new minimum capital requirement of N25 billion for a national bank, then under the leadership of Charles Soludo.

At the time, the bank challenged the apex bank’s decision, leading to an Abuja Federal High Court order in April 2008. However, following the order of the Federal High Court, Abuja, the apex bank was compelled to restore the operational permit after it declared that the bank met the minimum financial requirements to return to business.

The court had ruled that while it was the prerogative of CBN, as the regulatory body for banks in Nigeria, to revoke a banking licence in deserving situations, SGBN should have been given ample time to meet the condition attached to the forbearance of a considerable portion of its huge indebtedness to CBN.

As a result, the SGBN licence was reissued as a regional bank in 2012.

SGBN later rebranded as Heritage Banking Company Limited and opened its doors for business in 2013. In 2015, Heritage Bank successfully acquired 100 per cent shares valued at about N56.1 billion in Enterprise Bank Limited.

The Asset Management Corporation of Nigeria (AMCON) at the time, said HBCL Investment Services Limited, HISL, emerged as the preferred bidder from among several domestic and international bidders that indicated interest in acquiring the bank.

Ordeals

In his interview with PREMIUM TIMES, Mr Obisesan said when Societe Generale Bank of Nigeria transformed to Heritage Bank, he withdrew the money in his account to the barest minimum.

“When SGBN transformed to Heritage Bank and all necessary documents were completed, I think that was 2015. All I did was, I withdrew the money in my account to the barest minimum but later on putting kobo kobo into the account.

“What I have there now to me, it’s just like a remnant but still in thousands. But I can say remnants compared to what I suffered and experienced in SGBN,” he said.

On his difficulties using Heritage Bank he said the only problem he had using the bank was transaction ‘anomaly’.

“The only problem I have using Heritage Bank was transaction anomaly. Any transactions you made, there wasn’t any notification, no alert either credit or debit, no message, nothing but monthly messages. There and then I didn’t allow it to bother me because I don’t rely on Heritage Bank alone because I have accounts with other banks unlike during SGBN. Once bitten twice bold,” he added.

On 3 June after weeks of unstable operations that left many customers stranded, the Central Bank of Nigeria (CBN), revoked the banking licence of Heritage Bank Plc.

The apex bank noted that the licence revocation was in line with its mandate to promote a sound financial system in Nigeria under the powers of the Banks and Other Financial Institutions Act.

The CBN said Heritage Bank violated section 12 (1) of the Banks and Other Financial Act, the CBN as it could not improve its financial performance, “a situation which constitutes a threat to financial stability.”

Regrettably, the CBN said Heritage Bank continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the licence the next necessary step.

The CBN also appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank, and the corporation has since taken over the defunct bank.

Following the licence revocation, the NDIC assured it would pay a maximum of N5 million insured deposits to each customer of the distressed bank and would pay depositors who had funds more than the insured deposits when the assets of Heritage Bank are realised.

Responding to the closure of the bank, Mr Obisesan said “I felt bad like every other customer would. Sure, because I went to the National Assembly Branch on Wednesday (can’t remember the date) to withdraw, I met just two members of staff, one security guy and another gentleman who told me ‘sir there’s no network.

“I left there and headed to another bank to transact business that was on Wednesday only four days later which was on Sunday evening I read online that the Heritage Bank license had been revoked,” he said.

He noted that the bank has been in distress for years and some months back, before the licence revocation exercise took effect, depositors ATM cards were restricted.

“I can only advise customers to be mindful of banks to deal with and NDIC should buckle up. Heritage Bank has been in distress not this year and NDIC was aware,” he added.