Tayo Busayo, Abuja
DAILY COURIER – The Nigeria Deposit Insurance Corporation (NDIC) has announced the disbursement of N5 million each to 82.36% of the total customers of the now-defunct Heritage Bank.
The NDIC also noted that the remaining 17.64% of insured deposits still pending payment belong primarily to depositors with accounts that have Post-No Debit instructions or lack a Bank Verification Number (BVN).
This information was revealed in a statement signed by the Director of Communication and Public Affairs, Bashir Nuhu, on Sunday in Abuja.
On June 3, 2024, the Central Bank of Nigeria (CBN) revoked Heritage Bank Plc's banking license due to ongoing financial instability and regulatory violations. According to the apex bank, this decision aligns with the CBN’s mandate under Section 12 of the Banks and Other Financial Institutions Act 2020, aimed at maintaining a stable financial system in Nigeria.
Following the license withdrawal, the NDIC announced that it would begin payments to the 2.3 million depositors of the bank. In the latest update provided in the Sunday statement, the director disclosed that disbursements to affected customers began four days after the liquidation.
The statement highlighted that the NDIC used Bank Verification Numbers as unique identifiers to locate depositors’ alternate accounts in other banks, facilitating prompt payments without the need for depositors to visit NDIC offices or complete forms.
The statement read in part: “In the discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of N5 million maximum per depositor within a record time of four days after the bank's closure. This was achieved using Bank Verification Numbers to locate depositors’ alternate accounts in other banks. This unprecedented achievement of direct payment through BVN-linked alternate accounts marks a historic shift for the NDIC in the prompt reimbursement of depositors, with 82.36% of the total insured deposits paid to date.”
For depositors with more than N5 million, the director explained that the remaining balances, classified as uninsured deposits, would be paid as liquidation dividends upon the realization of the defunct bank’s assets and recovery of debts owed to the bank.
“It is important to note that the remaining 17.64% of the insured deposits yet to be paid are largely for depositors whose accounts have Post-No Debit instructions, lack a BVN, or have no alternative accounts in other banks. Others have accounts with KYC limits on the maximum lodgment per day and are yet to come forward for verification. Depositors with balances exceeding N5 million have received the initial insured sum of N5 million, while the remaining balances will be paid as liquidation dividends upon the realization of the defunct bank’s assets and recovery of debts owed to the bank,” the statement added.