NDIC Commences Payment to Insured Depositors Following Heritage Bank License Revocation
In the wake of the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank’s banking license on June 3, 2024, the Nigeria Deposit Insurance Corporation (NDIC) has swiftly moved to protect depositors, commencing the verification and payment process for insured deposits. This action, taken under the provisions of Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2023, marks a significant milestone in the Corporation’s efforts to ensure the financial security of depositors.
The NDIC, appointed as the liquidator of Heritage Bank, initiated the payment of insured deposits within a record four-day period following the bank’s closure. Depositors are being reimbursed up to a maximum of N5 million per account, facilitated through the use of Bank Verification Numbers (BVN) to identify alternate accounts in other banks. This innovative approach has allowed for direct payments without requiring depositors to visit NDIC offices or complete additional forms, resulting in the prompt settlement of approximately 82.36% of the total insured deposits to date.
However, some depositors remain unpaid due to various complications, such as accounts with post-no-debit (PND) instructions, the absence of BVNs, or the lack of alternative bank accounts. The NDIC is actively reaching out to these individuals through phone calls and text messages, urging them to complete the verification process either online or by visiting any of the Corporation’s offices.
Beyond the insured deposits, the NDIC is also addressing the larger portion of uninsured deposits, which exceed the N5 million threshold. The Corporation is diligently working to ensure that these depositors are paid from liquidation dividends, which will be derived from the realization of Heritage Bank’s assets, including debt recovery and the sale of physical assets. The NDIC has assured that once all deposits—both insured and uninsured—are settled, they will proceed to reimburse other creditors in accordance with the legal priority of claims.
“The NDIC remains steadfast in its commitment to safeguarding depositors’ funds in all licensed banks,” the Corporation stated, encouraging the public to continue their banking activities with confidence, as other banks remain safe and sound.
For further inquiries, the NDIC has provided contact information, including an email address (claimscomplaints@ndic.gov.ng) and phone numbers, where depositors can seek assistance during weekdays from 9:00 a.m. to 5:00 p.m.:
– 0810 422 0807
– 0810 931 3326
– 0903 819 7064
– 0906 465 7140
– 0903 727 3810
This swift action by the NDIC underscores the agency’s role in maintaining stability within the Nigerian banking sector, ensuring that the interests of depositors are prioritized even in the face of financial institution failures.
