The Nigeria Deposit Insurance Corporation (NDIC) has paid N5 million to each depositor of the failed Heritage Bank whose balance exceeds the “initial insured sum of N5 million.”
The corporation disclosed this in a statement signed by its spokesman, Mr Bashir Nuhu and made available to Newsgazette on Tuesday.
The statement also said the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realisation of the defunct bank’s assets and recovery of debts owed to it.
“The NDIC is already working 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,” the statement said.
The corporation further said the direct payments were carried out through BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out forms.
“This achievement marks a historic shift for the NDIC in the prompt reimbursement of depositors with payment of about 82.36 per cent of the total insured deposit to date.
“The remaining 17.64 per cent of the insured deposits yet to be paid were largely those whose accounts have 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.
“These categories of depositors are currently being contacted by the Corporation through telephone calls and text messages to come forward for verification,” the NDIC said.
It added: “The Corporation has already initiated the process of debt recovery and realisation 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 portion of deposits, the Corporation will proceed with the payment of creditors in accordance with priority of claim as provided in the extant law.
“Payment of uninsured deposits and other claimants notwithstanding, the significant progress recorded in the payment of the insured deposits, the corporation is not unmindful of the uninsured deposits which constitute the larger portion of the total deposits of the defunct bank.”
Recall that following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024; the NDIC was appointed as liquidator and the Corporation, in accordance with Section 12(2) of BOFIA 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2023.
The Corporation immediately commenced the process of verification and payment to insured depositors in discharge of its deposit guarantee mandate.
