The Nigeria Deposit Insurance Corporation (NDIC) has announced the payment of depositors with balances exceeding Five Million Naira (N5 million) following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024. The NDIC, appointed as the liquidator, has begun the process of payment, with remaining balances to be paid as liquidation dividends upon the realization of the bank’s assets.
In accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2023, the Corporation swiftly commenced the verification and payment process for insured depositors. Within just four days of the bank’s closure, the NDIC managed to pay the insured deposit of up to N5 million per depositor using Bank Verification Numbers (BVN) as unique identifiers to locate depositors’ alternate accounts in other banks.
A statement signed by Bashir A. Nuhu, Director of the Communication & Public Affairs Department of the NDIC, confirmed that depositors with balances exceeding N5 million have received the initial insured sum. The remaining balances, classified as uninsured deposits, will be paid as liquidation dividends once the defunct bank’s assets are realized, and debts are recovered.
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This direct payment process through BVN-linked accounts, without requiring depositors to visit NDIC offices or fill out forms, represents a significant milestone for the NDIC, marking the prompt reimbursement of about 82.36% of the total insured deposits to date. However, 17.64% of insured deposits remain unpaid, largely due to issues such as Post No Debit (PND) instructions, lack of BVN, or the absence of alternative bank accounts. The NDIC is actively reaching out to these depositors to complete the verification process.
The NDIC emphasized that verification can be completed by visiting any of the Corporation’s offices or online at www.ndic.gov.ng/claims.
While significant progress has been made in the payment of insured deposits, the NDIC acknowledged the need to address the larger portion of uninsured deposits. The Corporation is working diligently to ensure that all depositors with balances exceeding the N5 million insured amount are paid through liquidation dividends from the realization of Heritage Bank’s assets. The NDIC has already initiated the process of debt recovery and the realization of investments and physical assets to ensure timely reimbursement.
Following the full payment of both insured and uninsured deposits, the NDIC will proceed with the payment of creditors in accordance with the priority of claims as provided by law. It is important to note that all payments beyond insured deposits are contingent on the availability and realization of the bank’s assets in the form of liquidation dividends.
The NDIC reassures the public of its commitment to the safety of depositors’ funds in all licensed banks and encourages continued confidence in the banking system, affirming that all other banks remain safe and sound.
