The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has successfully disbursed the insured deposit amount of ₦5 million each to 82.36% of the customers of the defunct Heritage Bank.
In a statement issued on Sunday, Bashir Nuhu, NDIC’s Director of Communication and Public Affairs, revealed that 17.64% of the insured deposits are still pending. This delay primarily affects depositors with accounts that have Post-No Debits instructions or those lacking a Bank Verification Number (BVN).
The Central Bank of Nigeria (CBN) revoked Heritage Bank’s license on June 3, 2024, due to ongoing financial instability and regulatory breaches. This action was in accordance with the CBN’s mandate under Section 12 of the Banks and Other Financial Institutions Act 2020, aimed at ensuring financial system stability in Nigeria.
Following the bank’s license withdrawal, the NDIC initiated the process to compensate the 2.3 million depositors of Heritage Bank. According to the statement, payments began just four days after the bank’s closure.
The NDIC achieved this rapid disbursement using BVNs as a unique identifier to locate depositors’ alternate accounts in other banks, eliminating the need for depositors to visit NDIC offices or fill out forms.
The statement noted, “The Corporation began the payment of the insured deposits of ₦5 million per depositor within a record time of four days following the bank’s closure. This milestone was accomplished through BVN-linked accounts, marking a significant advancement in the prompt reimbursement of depositors.”
For those with balances exceeding ₦5 million, the director clarified that the remaining amounts, classified as uninsured deposits, will be paid out as liquidation dividends once the bank’s assets are realized and debts recovered.
“The remaining 17.64% of insured deposits yet to be paid primarily involve depositors with Post-No Debits instructions or missing BVNs, as well as those with no alternative accounts or accounts with KYC limits who have yet to come forward for verification,” the statement added.
