BREAKING: NDIC Pays N5M Each To Heritage Bank Customers

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

The NDIC noted that the remaining 17.64% of insured deposits pending payment primarily belong to depositors with accounts under Post-No-Debit instructions or those lacking a Bank Verification Number (BVN).

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

On June 3, 2024, the Central Bank of Nigeria (CBN) revoked the banking license of Heritage Bank Plc due to ongoing financial instability and regulatory breaches. This action was taken in line with the CBN’s mandate under Section 12 of the Banks and Other Financial Institutions Act 2020 to maintain financial stability in the country.

Following the license revocation, the NDIC commenced the payment process for Heritage Bank’s 2.3 million depositors. According to the NDIC, disbursements began just four days after the bank was closed, leveraging BVNs as a unique identifier to locate depositors’ alternate accounts in other banks.

The NDIC highlighted that this swift payment process marked a significant shift in the prompt reimbursement of depositors, achieving an unprecedented direct payment through BVN-linked accounts without requiring depositors to visit NDIC offices or fill out forms.

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

The NDIC also noted that the 17.64% of insured deposits yet to be paid are largely from accounts with Post-No-Debit instructions, accounts without BVNs, or accounts without alternate accounts in other banks. These depositors are encouraged to come forward for verification to facilitate the payment process.