NDIC Focuses On Heritage Bank’s N700bn Debtors, Identifies 2.3m Depositor

NDIC Focuses On Heritage Bank’s N700bn Debtors, Identifies 2.3m Depositor

The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to swiftly disburse insured deposits to depositors of Heritage Bank, recently declared defunct by the Central Bank of Nigeria. Managing Director Bello Hassan disclosed that customers holding N5 million or less in their accounts, constituting 99% of the bank’s 2.3 million depositors, will receive payments within a week……….. CONTINUE READING

Hassan emphasized NDIC’s commitment to safeguarding depositors and ensuring financial system stability. Initially focusing on insured amounts up to N5 million, NDIC will utilize the Bank Verification Number (BVN) system for efficient processing. Depositors with alternate bank accounts can visit NDIC branches, while others can claim through the NDIC website.

Following initial payments, NDIC plans to address uninsured deposits and creditors, leveraging the proceeds from the bank’s liquidation, which holds approximately N650 billion in deposits and N700 billion in loans. Hassan assured the public of NDIC’s mandate under the NDIC Act 2023 to maximize recovery efforts promptly.

The CBN’s decision to revoke Heritage Bank’s license cited persistent financial underperformance and non-compliance with regulatory standards. Customers, gathering at the bank’s premises in Lagos, were assured of ongoing payment processing, while corporate account holders were advised to expect settlements in the coming week, sparking concerns regarding BVN linkage for corporate accounts.

Security measures restricted entry to the bank, redirecting inquiries to the CBN’s official statement. The atmosphere among customers remained subdued, with many declining interviews amid ongoing payment arrangements.