NDIC to Pay Heritage Bank Depositors Above ₦5mn Soon
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to commence payment to depositors of the defunct Heritage Bank whose funds exceed the ₦5 million deposit insurance limit.
The payments will be sourced from liquidation dividends generated through the realisation of the bank’s assets and recovery of debts.
The Managing Director of NDIC, Bello Hassan, disclosed this yesterday at an Editors’ Forum organised by the corporation in Lagos. He reaffirmed NDIC’s commitment to ensuring that all depositors, including those with balances above the insured limit, are reimbursed.
“These uninsured deposits represent a significant portion of the total deposits in Heritage Bank. In this regard, the Corporation is already working assiduously to ensure that depositors with amounts over the maximum insured amount of ₦5 million are paid through liquidation dividends from the realisation of the defunct bank’s assets and recovery of debts,” Hassan stated.
The NDIC, he said, has initiated a comprehensive process to recover debts and liquidate investments and physical assets of the defunct bank. This move aims to facilitate timely payments to depositors with uninsured funds.
Hassan highlighted the NDIC’s proactive approach in reimbursing smaller depositors, noting that payments of insured deposits, capped at ₦5 million per depositor, were completed within four days of the bank’s closure. This rapid payout was achieved through the use of Bank Verification Numbers (BVN), which allowed depositors’ alternate accounts in other banks to be identified without requiring them to fill out forms or visit NDIC offices.
“This innovative approach has enabled the payment of most depositors with BVN-linked accounts to date,” he explained.
He also noted that the NDIC’s recent increase in deposit insurance coverage from ₦500,000 to ₦5 million for Deposit Money Banks significantly reduced the impact of the bank’s failure on affected depositors.
This achievement aligns with the International Association of Deposit Insurers (IADI) Core Principle 15, which underscores the importance of timely payouts to depositors of failed banks.
The NDIC’s efforts reflect its commitment to safeguarding depositors’ funds and maintaining public confidence in the banking system. Stakeholders will closely monitor the progress as the Corporation works to finalise payments to depositors with uninsured funds from the defunct Heritage Bank.
