Heritage Bank Shutdown Stalls $5.7m World Bank Fund for Yobe State
The revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria (CBN) has precipitated an unexpected financial crisis in Yobe State. Approximately $5.7 million earmarked for Yobe under the World Bank’s Multi-Sectoral Crisis Recovery Project has been frozen since June 3, 2024, following the CBN’s action. According to a restructuring report obtained by Sunday PUNCH, Yobe has managed to retrieve only about $0.5 million of the blocked funds, leaving $5.2 millionstranded almost a year later.
The Multi-Sectoral Crisis Recovery Project, launched in 2017 and slated to close on May 31, 2025, targets the revival of basic services and livelihood opportunities in crisis-affected northeastern states—Adamawa, Borno, and Yobe. To date, the project has fully disbursed $378.2 million and has achieved full utilization of those funds despite persistent security challenges. However, Yobe’s share remains out of reach, raising concerns about project completion and local impact.
“Approximately $5.7 million allocated to Yobe State was inaccessible at Heritage Bank following the revocation of its licence by the CBN on June 3, 2024. The state successfully recovered over $0.5 million of these funds. The team is working with the World Bank Financial Advisory to determine the most effective strategy for reclaiming the remaining $5.2 million,” the report states.
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Project stakeholders have mobilized to engage the World Bank’s Financial Advisory unit, seeking practical avenues to redeem the frozen balance. Options under consideration include transferring the remaining funds to alternative commercial banks or negotiating a special escrow arrangement that circumvents existing legal hurdles.
Despite the Heritage Bank setback, the project has benefitted over 1.4 million people across the Lake Chad Basin region by improving livelihoods and delivering social infrastructure—roads, health centres, schools, water and sanitation facilities. Nearly 2,000 subprojects have been completed, although some road works in Adamawa and Yobe remain unfinished due to security obstacles.
Performance metrics remain largely positive: over 1.3 million beneficiaries have seen improved livelihoods, with women constituting 49 percent of those engaged in peacebuilding and social-cohesion initiatives. Infrastructure upgrades have enhanced service delivery for more than 2.5 millionpeople, with rehabilitated schools and health facilities boosting education and healthcare outcomes. Technical assistance has also strengthened capacities among researchers, teachers, and community leaders, supporting sustainable recovery.
Nonetheless, the Heritage Bank collapse poses a significant threat to Yobe State’s programmatic momentum. As the May 31, 2025 project closure deadline arrived, Yobe’s share remained largely frozen, intensifying pressure on World Bank teams and state officials to expedite fund recovery and prevent delays in ongoing work.
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