First Bank recovers N456bn loan from Heritage Bank before license revocation - Report

First Bank of Nigeria (FBN) has received the full payment of a “N456 billion loan” given to Heritage Bank before the latter's license was revoked, according to Nairametrics.

The bail-out loan was arranged and extended to Heritage Bank during the tenure of former Central Bank of Nigeria (CBN) Governor Godwin Emefiele.

According to Nairametrics, the apex bank credited First Bank before it decided to revoke the license of Heritage Bank, thereby averting what could have affected First Bank.

Recall that the license of Heritage Bank was revoked on Monday, June 3 after it "continued to suffer and has no reasonable prospects of recovery,”. The CBN said this led to the bank's eventual collapse.

The push by First Bank to recover its funds intensified when the situation of Heritage Bank worsened over the years with a resolution only reached after a new board and management took over the holding company of the bank.

The amount was eventually credited to First Bank ahead of the official announcement of Heritage Bank’s license revocation, ending the seven-year wait.