Heritage Bank: 82.36% of total deposit paid to customers – NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has celebrated the unprecedented achievement for its reimbursement of the Heritage Bank depositors with payment of about 82.36% of the total insured deposit to date.

This was disclosed in a statement released by the Corporation on Sunday, which follow the direct payment via BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out any forms as said by the Corporation.

Recall that the Central Bank of Nigeria (CBN) on June 3, 2024, revoked the Heritage Bank’s banking license, appointed the Corporation as liquidator

The Corporation, in accordance with Section 12(2) of BOFIA 2020 and the Section 55 subsections 1 & 2 of the NDIC Act 2023, immediately commenced the process of verification and payment to insured depositors.

According to the Corporation, “Payment of Insured Deposits In discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of Five Million Naira (N5,000,000) maximum per depositor within a record time of four (4) days of the bank closure”.

Stating that this was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks.

“However, depositors with balances exceeding Five Million Naira paid the initial insured sum of Five Million Naira, while the remaining balances (classified as uninsured deposits) be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed to the defunct bank.”
The Corporation stated further that, the remaining 17.64% of the insured deposits yet to be paid were largely depositors whose accounts post no debits (PND) instructions or have 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.

The NDIC explained that these category of depositors are presently being contacted by the Corporation through telephone calls and text messages to come forward for verification.

*As earlier mentioned in our press release, press conference and advert in the print and electronic media, the verification can be done by visiting any of the Corporation’s offices or online at www.ndic.gov.ng/claims.
“Payment of Uninsured Deposits and Other Claimants Notwithstanding, the significant progress recorded in payment of the insured deposits, we are however, not unmindful of the uninsured deposits which constitute the larger portion of the total deposits of the defunct bank”.

In this regard, the Corporation said its already working assiduously to ensure that all depositors with amounts in excess of the maximum insured amount of N5 million are timely paid through liquidation dividend from realisation of the defunct bank’s assets.

“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”, the Corporation said.

The NDIC who vowed to continue commit to the safety of depositors’ funds in all licensed banks, enjoined members of the public to continue their banking activities without fear, as all other banks remain safe and sound.