Headlines
NDIC pays N5m to Heritage Bank depositors with over N5m in their accounts
The Nigeria Deposit Insurance Corporation (NDIC) says about 82.36 percent of the depositors of failed Heritage Bank have been paid.
In a statement issued on Sunday by Bashir Nuhu, its director of communication and public affairs, the corporation said that it commenced the payment of verified depositors within four days of the liquidation of the bank.
The CBN announced the revocation of the licence of Heritage Bank in June and appointed the NDIC as the liquidator.
“Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the Nigeria Deposit Insurance Corporation (NDIC) was appointed as liquidator and the Corporation, in accordance with Section 12(2) of BOFIA 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2023, immediately commenced the process of verification and payment to insured depositors,” the statement said.
“In the discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of N5m 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.
“However, depositors with balances exceeding N5m have been paid the initial insured sum of N5m, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed to the defunct bank. This unprecedented achievement of direct payment through BVNlinked 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 per cent of the total insured deposit to date.”
The NDIC added that 17.64 per cent of the insured deposits yet to be paid were largely depositors whose accounts had posted no debit instructions or had no BVN.
“Others are those with no alternative accounts in other banks or accounts with KYC limit on the maximum lodgment per day and are yet to come forward for verification. This category of depositors are presently being contacted by the Corporation through telephone calls and text messages to come forward for verification,” the corporation stated.
On the payment of uninsured deposits, the NDIC remarked that it constituted the larger portion of the total deposits of the defunct bank.
“In this regard, the corporation is already working assiduously to ensure that all depositors with amounts in excess of the maximum insured amount of N5m are timely paid through liquidation dividend from the realisation of the defunct bank’s assets. The Corporation has already initiated the process of debt recovery and realisation of investments and physical assets of the defunct bank to ensure timely reimbursement of the uninsured depositors of the defunct bank.
“Subsequently, after the full payment of both insured and uninsured portion of deposits, the Corporation will proceed with the payment of creditors in accordance with priority of claim as provided in the extant law. We will like to reiterate that, all payments other than that of insured deposits, are subject to availability and realisation of assets of the bank in the form of liquidation dividend,” NDIC said.
