NDIC Ensures Swift Compensation for Heritage Bank Depositors After License Revocation
The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has paid out 82.36 per cent of insured deposits to customers of the recently liquidated Heritage Bank. This follows the Central Bank of Nigeria’s (CBN) decision to revoke the bank’s licence in June, appointing the NDIC as the liquidator.
In a statement released on Sunday, the NDIC revealed that payments to verified depositors began within just four days of the bank’s closure—a rapid response made possible by using Bank Verification Numbers (BVNs) to locate depositors’ alternate accounts in other financial institutions. Depositors with balances up to the insured maximum of N5 million per account holder were promptly reimbursed.
However, the NDIC clarified that those with balances exceeding the N5 million insurance cap have so far received only the insured portion of their funds. The remaining balances, categorized as uninsured deposits, will be disbursed as liquidation dividends after the defunct bank’s assets are realised and outstanding debts recovered.
“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,” the corporation stated, highlighting its successful disbursement to more than 82 per cent of depositors to date.
The NDIC noted that the remaining 17.64 per cent of insured deposits yet to be paid largely belong to account holders who had either not conducted any recent transactions, lacked BVNs, or did not have alternate accounts in other banks. The corporation is actively reaching out to these depositors through phone calls and text messages, urging them to complete the necessary verification process.
Regarding uninsured deposits, which comprise a significant portion of the total deposits at the defunct bank, the NDIC reassured depositors that efforts are underway to ensure full payment. The corporation has initiated the process of debt recovery and the realisation of Heritage Bank’s investments and physical assets, which will fund the reimbursement of uninsured depositors.
The NDIC also outlined its commitment to settling creditors after all depositors have been fully compensated, as per the priority of claims mandated by law. However, it emphasized that all payments beyond the insured deposits are contingent upon the availability and realisation of the bank’s assets in the form of liquidation dividends.
The NDIC’s swift action following the Heritage Bank closure marks a significant milestone in its mandate to protect depositors, ensuring that the majority of affected customers have already received their insured funds, with plans firmly in place to address the remaining balances.
