In a tale reminiscent of old wine in a new bottle, Heritage Bank emerged from the ruins of Societe Generale Bank of Nigeria (SGBN).
This transformation, however, ended in liquidation, marking a dramatic turn in the bank’s journey.
The Rebirth of SGBN
SGBN, founded by the late Dr. Olusola Saraki, was once one of Nigeria’s most prominent banks, boasting over 140 branches nationwide.
In 2013, it re-emerged as Heritage Bank, though without the dominant control of the Saraki family.
Instead, International Energy Insurance (IEI) acquired a significant stake, while the Saraki family retained a 10 percent shareholding.
Heritage Bank’s leadership under Ifie Sekibo, a trained accountant and member of the Chartered Institute of Bankers and Institute of Petroleum, London, marked a new era.
Sekibo, who was then the Executive Vice Chairman of IEI, became the pioneer managing director of the newly established Heritage Bank.
Revival and Initial Success
The Central Bank of Nigeria (CBN) revoked SGBN’s license in 2006 for failing to meet the recapitalization deadline.
However, a court ruling in June 2008 declared the CBN’s decision unconstitutional.
By December 2012, Heritage Bank met the statutory N10 billion capital base for regional banking, and in 2013, it resumed operations, returning 100 percent of Societe Generale account holders’ monies.
Heritage Bank quickly expanded its services and by December 2015, it had assets worth over US$1.7 billion (N483.4 billion) and shareholders’ equity of at least US$88 million (N25 billion).
The bank’s acquisition of Enterprise Bank Ltd.
In 2015 further expanded its footprint, with 127 branches and over 350 ATMs across Nigeria.
The Downfall
Despite early successes, Heritage Bank’s financial health deteriorated.
According to a CBN Revocation Order signed by Governor Olayemi Cardoso on June 3, 2024, Heritage Bank violated Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020 in multiple ways.
The bank had insufficient assets to meet its liabilities, conducted business unsoundly, and failed to comply with various regulatory obligations.
Its capital adequacy ratio was critically low, posing a threat to financial stability.
Heritage Bank’s 2021 audited statement revealed severe financial distress.
With a net interest income in the negative, a non-performing loan (NPL) ratio of 81.2 percent, and an accumulated loss of N459 billion, the bank was effectively insolvent.
No other bank was willing to acquire Heritage Bank due to its dire condition.
Faces Behind Heritage Bank
Prominent figures in Heritage Bank’s management included:
Jani Ibrahim (Chairman): With extensive experience in the aviation and oil and gas industries, he was a former Managing Director of Nigerian Airways Limited.
Akin George-Taylor (Managing Director/CEO): A seasoned banker with over two decades of experience, he had previously served as an Executive Director at GTBank.
Olayemisi Disu (Director): With 25 years of banking experience, she held various roles across multiple banks.
Osepiribo Ben-Willie (Executive Director): An accomplished banker with over 25 years of experience, she led business transformation initiatives.
Adewunmi Ogunsanya (Director): A law graduate from the University of Kent and the Chairman of Multichoice Nigeria Limited.
George Oko-Oboh (Executive Director): A financial services professional with over two decades of banking experience, he oversaw the Abuja and North Directorate Business.
