Recall that on June 3, 2024, the Central Bank of Nigeria (CBN) revoked Heritage Bank’s banking license and appointed the NDIC as liquidator in accordance with Section 12(2) of BOFIA 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2020.
In a statement signed by the Director of Communication & Public Affairs, Bashir A. Nuhu, and made available to VON Correspondent, the Corporation stated that it immediately commenced the process of verification and payment to insured depositors.
“In the discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of a maximum of Five Million Naira (N5,000,000) per depositor within a record time of four (4) days of the bank’s closure. This was achieved using Bank Verification Numbers (BVN) 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% of the total insured deposits to date.”
The NDIC hinted that the remaining 17.64% of the insured deposits yet to be paid belong largely to depositors whose accounts have post-no-debits (PND) instructions or who have no BVN. Others are those with no alternative accounts in other banks or accounts with a KYC limit on the maximum lodgment per day and are yet to come forward for verification.
“These categories 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 advertisements in the print and electronic media, the verification can be done by visiting any of the Corporation’s offices or online.”
The Corporation disclosed that 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 the realization of the defunct bank’s assets and recovery of debts owed to the defunct bank.
“Notwithstanding the significant progress recorded in the 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 is 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 dividends from the realization of the defunct bank’s assets.
“The Corporation has already initiated the process of debt recovery and realization 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 portions of deposits, the Corporation will proceed with the payment of creditors in accordance with the priority of claims as provided in the extant law.”
The Corporation reiterated that all payments, other than those of insured deposits, are subject to the availability and realisation of assets of the bank in the form of liquidation dividends.
The NDIC urged members of the public who need further clarification to contact the Corporation for resolutions.
The NDIC maintained that it is committed to the safety of depositors’ funds in all licensed banks and enjoined members of the public to continue their banking activities without fear, as all other banks remain safe and sound.
