The Nigerian Deposit Insurance Commission (NDIC) has explained how Heritage Bank’s customers will get their money , starting with verifying and paying the bank’s depositors.
On Monday, the NDIC announced this development after the Central Bank of Nigeria (CBN) appointed it as the liquidator, following the revocation of Heritage Bank’s license.
The CBN, through Acting Director of Corporate Communication Sidi Ali, stated that the license revocation was necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.
Despite CBN’s efforts to engage with the bank and implement supervisory measures, the bank’s financial performance did not improve, posing a threat to financial stability.
In a statement by Bashir Nuhu, Director of Communication & Public Affairs, NDIC assured depositors they would receive up to N5 million.
Depositors with an alternate bank account will be paid using their Bank Verification Number (BVN).
Those with funds exceeding N5 million will receive liquidation dividends once the bank’s assets are realized and debts recovered.
Deposit verification and payment for those without an alternate account will be conducted at the nearest bank branch or online via the NDIC website.
It wrote,
”Following the revocation of the banking license of Heritage Bank Plc by the Central Bank of Nigeria (CBN) today, June 3, 2024, and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator, under Section 12(2) of BOFIA, 2020,
“The corporation wishes to announce to depositors of the bank in particular and the banking public in general, as follows:
“The NDIC has commenced the Liquidation of Heritage Bank Plc by Section 55 sub-section 1 & 2 of the NDIC Act 2023
“The corporation has also commenced the liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank depositors.”
Depositors of the bank that have alternate accounts within the industry will be paid up to the insured amount of ₦5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account.
“While depositors with funds in excess of ₦5 million will be paid liquidation dividend upon realisation of the bank’s assets and recovery of debts owed to the bank.”
The NDIC also urged the bank’s creditors to file their claims in person or online, stating that creditors would be paid after depositors.
Debtors of the failed bank were advised to complete their loan repayments. The NDIC reaffirmed its commitment to safeguarding depositors’ funds in all licensed banks, urging the public to continue their banking activities without fear.
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The Bank Customers Association of Nigeria supported the CBN’s decision to revoke Heritage Bank’s license. Its President, Dr. Uju Ogubunka, explained that such actions ensure the safety of the banking sector.
He noted that the CBN likely made the decision after extensive engagement with the bank’s management, having exhausted other remedial options.
Professor of Capital Market Uche Uwaleke also endorsed the move, emphasizing that it was necessary for financial system stability.
He highlighted the importance of protecting depositors and employees during the liquidation process.
Meanwhile, the House of Representatives has pledged to engage relevant stakeholders to ensure the safety of depositors’ funds.
House spokesman Akin Rotimi confirmed their commitment to overseeing the resolution process, ensuring transparency and mitigating any negative impacts on the public.
The House Committees on Banking Regulations and Insurance will monitor the process closely to protect depositors’ rights and maintain confidence in the financial sector.
