The Nigeria Deposit Insurance Corporation has launched efforts to recover debts from the debtors of the recently liquidated Heritage Bank, as part of plans to pay uninsured depositors.
This announcement was made by NDIC Managing Director, Alhaji Bello Hassan, during the 2024 NDIC Editors Forum held in Lagos on Saturday.
The forum, themed “Strengthening Nigeria’s Financial Safety Net: The Role of Deposit Insurance,” aimed at enhancing public trust and promoting financial stability.
Hassan confirmed that, in addition to reimbursing depositors with more than the insured limit of N5 million, the NDIC will also ensure the timely payment of creditors of the defunct bank. He explained that the Corporation has already initiated the recovery of debts and the realization of the bank’s fiscal assets to facilitate these payments.
Hassan, represented by NDIC Executive Director of Operations, Mustapha Ibrahim, addressed the delay in some insured customers’ payments. While most depositors received their reimbursements within four days of the bank’s closure, issues such as missing Bank Verification Numbers (BVNs), account restrictions, and lack of alternative bank accounts have delayed others. The NDIC is actively working to resolve these challenges.
Hassan emphasized the importance of depositors adhering to Know Your Customer (KYC) regulations to ensure swift reimbursement in the event of a bank closure.
Following the Central Bank of Nigeria’s revocation of Heritage Bank’s license on June 3 due to persistent financial instability and regulatory non-compliance, the NDIC successfully paid 82.36% of insured deposits by August.
The CBN had cited the bank’s inability to meet financial health requirements and regulatory measures as key reasons for the closure.
In response to the liquidation, the NDIC has been working to reimburse depositors and creditors, utilizing BVNs to facilitate payments to insured customers.
