NDIC Disburses N5m Each to 82.36% of defunct Heritage Bank Depositors

The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has successfully disbursed the insured deposits of N5 million each to 82.36% of the total customers of the now-defunct Heritage Bank.

The remaining 17.64% of insured deposits are still pending due to issues such as Post-No Debits instructions or the lack of a Bank Verification Number (BVN) on affected accounts.

This update was provided in a statement by the NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, on Sunday in Abuja.

The Central Bank of Nigeria (CBN) revoked the banking license of Heritage Bank Plc on June 3, 2024, citing persistent financial instability and regulatory breaches. The action was taken under Section 12 of the Banks and Other Financial Institutions Act 2020, which mandates the CBN to maintain a stable financial system in Nigeria.

Following the revocation of Heritage Bank’s license, the NDIC began the payment process for the bank’s 2.3 million depositors.

According to Nuhu, disbursement to affected customers started just four days after the bank’s liquidation, utilizing BVNs to locate depositors’ alternate accounts in other banks.

“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,” the statement read.

The NDIC highlighted that this method marks a historic shift in its operations, enabling prompt reimbursement without the need for depositors to visit NDIC offices or fill out forms.

“This unprecedented achievement of direct payment through BVN-linked alternate accounts… marks a historic shift for the NDIC in the prompt reimbursement of depositors,” Nuhu added.

For depositors with balances exceeding N5 million, the NDIC clarified that the remaining amounts, categorized as uninsured deposits, would be paid as liquidation dividends once the defunct bank’s assets are realized and debts are recovered.

“It is instructive to state that the remaining 17.64% of the insured deposits yet to be paid were largely depositors whose accounts have post no debits instructions or 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,” the statement noted.

The NDIC assured depositors with uninsured balances that they would receive payments as the liquidation process progresses.