NDIC Pays Out 82% of Heritage Bank Deposits
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has reimbursed depositors of the now-defunct Heritage Bank, with 82.36% of the total insured deposits having been paid out to date.
This was disclosed in a statement issued by Bashir A. Nuhu, Director of Communication and Public Affairs for the NDIC, on Sunday in Abuja.
The statement highlighted that the Corporation has embarked on a comprehensive process of debt recovery and the realization of investments and physical assets owned by the defunct Heritage Bank to generate the funds necessary for settling the remaining balances. These steps are crucial in ensuring that all depositors and creditors are eventually reimbursed in full.
According to the NDIC, the remaining 17.64% of the insured deposits yet to be paid are primarily associated with depositors whose accounts are under post no debits (PND) instructions or lack Bank Verification Numbers (BVNs). Nuhu noted that these issues have delayed the final phase of payments but assured that efforts are underway to address these outstanding cases.
The Corporation’s statement further elaborated on the swift measures taken to reimburse depositors following the bank’s closure. Remarkably, within just four days of the bank’s shutdown, the NDIC commenced the payment of insured deposits, with a maximum of N5 million per depositor. This prompt response was facilitated by the use of BVNs as unique identifiers, allowing the NDIC to locate and verify depositors’ alternate accounts in other banks.
However, for depositors with balances exceeding the insured sum of N5 million, only the initial insured amount has been disbursed so far. The remaining balances, classified as uninsured deposits, will be paid out as liquidation dividends once the assets of Heritage Bank are fully realized and the debts owed to the bank are recovered.
“Other affected depositors include those without alternate bank accounts, those with accounts limited by Know Your Customer (KYC) restrictions on maximum daily lodgments, and those who have yet to come forward for verification,” the NDIC statement read. The Corporation is actively reaching out to these depositors through phone calls and text messages, urging them to complete the verification process either by visiting any NDIC office or online at the NDIC’s official website.
The NDIC acknowledged the significant progress made in reimbursing insured deposits but emphasized that uninsured deposits represent a larger portion of the total deposits held by the defunct Heritage Bank. The Corporation assured that efforts are being intensified to ensure that depositors with uninsured amounts exceeding N5 million are paid promptly, through the liquidation dividends from the realization of the bank’s assets.
Following the full payment of both insured and uninsured deposits, the NDIC will turn its attention to settling the claims of creditors, in accordance with the priority of claims as stipulated by the prevailing law. However, the NDIC reiterated that all payments, except those for insured deposits, are contingent upon the availability and realization of the bank’s assets.
The NDIC also reassured the public of its commitment to safeguarding depositors’ funds across all licensed banks in Nigeria. The Corporation urged the public to continue their banking activities without fear, affirming that all other banks in the country remain safe and sound.
This development underscores the NDIC’s vital role in maintaining financial stability and protecting depositors’ interests in the event of bank failures. The ongoing debt recovery and asset realization efforts are crucial to ensuring that all affected depositors and creditors of the defunct Heritage Bank are fully compensated.
