NDIC to Pay Out N650bn to Heritage Bank Depositors
…Staff Face Uncertain Future
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has announced a plan to begin repaying depositors of the defunct Heritage Bank this week.
The bank’s operating license was revoked by the Central Bank of Nigeria (CBN) this week due to its failure to meet regulatory requirements.
According to NDIC Managing Director Bello Hassan, over 2.3 million depositors will receive a total of N650 billion. This optimistic outlook stems from the fact that 99.9% of these depositors have account balances below the N5 million maximum insured amount.
For those with linked accounts at other banks, the NDIC will utilize their Bank Verification Number (BVN) to electronically transfer insured funds directly into those accounts. This should expedite the payout process.
Depositors without linked accounts will need to visit their Heritage Bank branches or the NDIC offices to download necessary information and initiate the claims process.
Hassan acknowledged that the bank’s closure will unfortunately result in job losses for most Heritage Bank staff. Only a select few with specialized knowledge relevant to the bank’s situation will be retained.
The NDIC emphasized its strengthened authority to recover assets owed to Heritage Bank. These new powers has energized the Corporation to be optimistic of fully recovering debts owed the defunct Heritage Bank.
Mr. Bello Hassan disclosed that the NDIC will try to recover over N700 billion loans so far discovered in the bank’s books.
The NDIC boss noted that the reason the CBN revoked the bank’s licence was because it “failed to measure up to the prudential guidelines requirements of the CBN”.
While Hassan did not directly address insider lending, his reference to non-compliance with a prudential guideline parameter suggests it could be a potential factor.
