The Nigeria Deposit Insurance Corporation (NDIC) says it has disbursed the insured deposits of N5 million each to 82.36% of the total customers of the defunct Heritage Bank.
It further stated that 17.64 percent of the insured deposits that are still pending payment are from depositors with accounts that have Post-No Debits instructions or do not have a Bank Verification Number.
This was revealed in an announcement signed by Bashir Nuhu, Director of Communication and Public Affairs, on Sunday in Abuja.
Heritage Bank Plc’s banking license was terminated on June 3, 2024, by the Central Bank of Nigeria owing to ongoing financial instability and regulatory infractions.
The decision, according to the apex bank, is in line with the CBN’s mandate under Section 12 of the Banks and Other Financial Institutions Act 2020, which aims to maintain a stable financial system in Nigeria.
Following the withdrawal of Heritage Bank’s license, the NDIC stated that it would begin payment of the 2.3 million depositors of the bank.
Giving an update in the statement issued on Sunday, the director disclosed that disbursement to affected customers started four days after the liquidation.
According to the apex bank, the decision is consistent with the CBN’s mandate under Section 12 of the Banks and Other Financial Institutions Act 2020, which seeks to ensure a stable financial system in Nigeria.
Following the revocation of Heritage Bank’s license, the NDIC declared that it will commence payments to the bank’s 2.3 million depositors.
In an update given on Sunday, the director stated that distribution to affected clients began four days following the liquidation.
He claimed that this feat was accomplished by employing bank verification numbers as a unique identifier to discover depositors’ other accounts at other banks.
The NDIC statement reads in part, “In the discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of N5 million maximum per depositor within a record time of four days of the bank closure.
“This was achieved using bank verification numbers as a unique identifier to locate depositors’ alternate accounts in other banks.
“This unprecedented achievement of direct payment through BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out forms marks a historic shift for the NDIC in the prompt reimbursement of depositors with payment of about 82.36 percent of the total insured deposit to date.”
For depositors with balances greater than N5 million, the director clarified that the remaining sums (designated as uninsured deposits) will be reimbursed as liquidation dividends upon the realisation of the defunct bank’s assets and the recovery of debts owed to it.
“It is instructive to state that the remaining 17.64 percent of the insured deposits yet to be paid were largely depositors whose accounts have post-debit instructions or have no BVN. Others are those with no alternative accounts in other banks or accounts with a KYC limit on the maximum load per day and are yet to come forward for verification.
“However, depositors with balances exceeding Five Million Naira have been paid the initial insured sum of Five Million Naira, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realisation of the defunct bank’s assets and recovery of debts owed to the defunct bank,” the statement added.
