The Nigeria Deposit Insurance Corporation has successfully disbursed 82.36% of the total insured deposits to customers of Heritage Bank, following the revocation of the bank’s license by the Central Bank of Nigeria on June 3, 2024.
This payment was achieved within just four days of the bank’s closure.
According to a statement from Bashir A. Nuhu, Director of Communication & Public Affairs at NDIC, the corporation has begun distributing up to N5 million per depositor. The rapid payment process utilized Bank Verification Numbers to locate depositors’ alternate accounts in other banks, marking a historic shift in the NDIC’s approach to deposit reimbursement.
The NDIC’s statement highlighted that depositors with balances exceeding N5 million received the maximum insured amount of N5 million. The remaining balances, classified as uninsured deposits, will be paid out as liquidation dividends once the defunct bank’s assets are realized and debts are recovered.
“This unprecedented achievement of direct payment through BVN-linked accounts, without requiring depositors to visit NDIC offices or complete forms, underscores our commitment to timely reimbursement,” the statement read.
Despite this progress, 17.64% of insured deposits remain pending due to issues such as Post No Debit (PND) instructions, absence of BVN, or lack of alternative accounts. The NDIC is actively working to resolve these issues and reach out to affected depositors through phone calls and text messages.
For depositors with amounts exceeding the insured limit, the NDIC focuses on recovering and liquidating the bank’s assets to pay these uninsured deposits as dividends in the future. “The Corporation has already begun the process of debt recovery and asset realization to ensure timely payment of uninsured deposits,” the statement added.
The NDIC assured that once both insured and uninsured deposits are fully paid, the corporation will proceed with paying creditors in accordance with legal priorities. “All payments beyond the insured deposits are subject to the availability and realization of the bank’s assets,” the statement concluded.
The CBN recently revoked Heritage Bank’s banking license due to persistent financial instability and regulatory breaches. This decision aligns with the CBN’s mandate under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, aimed at maintaining a stable financial system in Nigeria.
The CBN noted that despite multiple supervisory interventions, Heritage Bank failed to improve its financial performance, posing a threat to financial stability. The revocation is intended to reinforce public confidence in the banking sector and ensure the integrity of the financial system.
