The Nigeria Deposit Insurance Corporation (NDIC) has reported that 82.36% of insured depositors from the now-defunct Heritage Bank have been reimbursed since the Central Bank of Nigeria (CBN) revoked the bank’s license on June 3, 2024.
NDIC spokesperson Bashir Nuhu stated that the remaining 17.64% of depositors are yet to be paid due to various issues. These include accounts with post no debit (PND) instructions or those lacking Bank Verification Numbers (BVNs).
The NDIC swiftly began disbursing the insured amount of up to N5 million per depositor within just four days of the bank’s closure, utilizing BVNs to identify depositors’ alternate accounts. Depositors with balances exceeding the insured amount have received the initial N5 million, with the remaining sums to be disbursed as liquidation dividends once the bank’s assets and debts are recovered.
This process marked a significant milestone for the NDIC, which managed to expedite payments through BVN-linked accounts without requiring depositors to visit NDIC offices or complete forms.
The NDIC is actively contacting the remaining depositors through phone calls and text messages to facilitate their verification. The corporation is also working on recovering debts and liquidating assets of the defunct bank to ensure timely payment to all depositors.
Following the settlement of both insured and uninsured deposits, the NDIC will address creditor claims according to legal priorities.
Why Heritage Bank’s operating licence was revoked
REPORT AFRIQUE reported back in June that the Central Bank of Nigeria (CBN) revoked the operating license of Heritage Bank. This decision was announced by the Acting Director of Corporate Communications at CBN, Hakama Sidi Ali, through an official statement.
According to the CBN, the revocation aligns with its mandate to ensure a stable financial system in Nigeria, as stipulated under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN cited Heritage Bank’s violation of Section 12 (1) of BOFIA 2020 as the primary reason for this action. The statement highlighted that the bank’s Board and Management had failed to enhance the bank’s financial performance, posing a significant risk to financial stability.
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