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BREAKING: NDIC Disburses N5m Each to Defunct Heritage Bank Depositors
The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has disbursed N5 million each to 82.36% of the depositors of the now-defunct Heritage Bank.
However, 17.64% of the insured deposits are still pending, primarily due to issues such as Post-No Debit instructions on accounts or missing Bank Verification Numbers (BVNs).
EKO HOT BLOG reports that this information was shared in a statement signed by Bashir Nuhu, Director of Communication and Public Affairs, on Sunday in Abuja.
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The Central Bank of Nigeria (CBN) revoked Heritage Bank’s banking license on June 3, 2024, due to ongoing financial instability and regulatory infractions.
The CBN’s decision aligns with its mandate under Section 12 of the Banks and Other Financial Institutions Act 2020, which is designed to maintain a stable financial system in Nigeria. Following the revocation, the NDIC began paying out to the 2.3 million depositors of Heritage Bank.
Heritage Bank
In the statement, Nuhu noted that disbursements began just four days after the bank’s closure. This swift action was facilitated by using BVNs as a unique identifier to locate depositors’ alternate accounts in other banks.
The statement read in part: “In fulfilling its deposit guarantee mandate, the Corporation began the payment of insured deposits up to N5 million per depositor within a record four days of the bank’s closure.
This was achieved by using BVNs to identify and locate depositors’ alternate accounts in other banks.
This rapid reimbursement, without requiring depositors to visit NDIC offices or complete forms, represents a significant milestone in the NDIC’s efforts to promptly reimburse depositors, with approximately 82.36% of insured deposits disbursed to date.”
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Depositors with amounts exceeding N5 million have received the initial N5 million insured sum, with the remaining balance classified as uninsured deposits. These will be paid out as liquidation dividends once the bank’s assets are realized and debts are recovered.
Nigeria Deposit Insurance Corporation
The statement further explained that the remaining 17.64% of insured deposits still pending payment are largely due to issues such as accounts with Post-No Debit instructions, missing BVNs, or KYC limitations. Depositors with such issues or those without alternative accounts have not yet been verified.
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