First Bank has successfully recovered a N456 billion loan extended to Heritage Bank, concluding a long-standing financial arrangement initiated during the tenure of former Central Bank of Nigeria (CBN) Governor Godwin Emefiele.
This repayment occurred shortly before the CBN revoked Heritage Bank’s license, a move aimed at averting a significant impairment charge for First Bank.
On Monday, the CBN officially announced the license revocation, citing Heritage Bank’s continued financial struggles and lack of prospects for recovery, leading to its collapse.
The repayment to First Bank, finalised after a seven-year wait, was confirmed by top sources and reflected in the bank’s financial statements.
As of the first quarter ending March 2024, First Bank reported balances with other banks amounting to N688 billion, a decrease from N735 billion in December 2023. These balances include clearing exposures to other deposit money banks in Nigeria.
