The Nigeria Deposit Insurance Corporation (NDIC) has successfully disbursed insured deposits of up to ₦5 million each to 82.36% of customers of the now-defunct Heritage Bank, following the Central Bank of Nigeria’s (CBN) revocation of the bank’s license on June 3, 2024.
In a statement issued on Sunday by the Director of Communication and Public Affairs, Bashir Nuhu, the NDIC noted that the remaining 17.64% of insured deposits are still pending due to issues such as Post-No Debits instructions or the lack of a Bank Verification Number (BVN) associated with the accounts.
The CBN’s decision to revoke Heritage Bank’s license was driven by persistent financial instability and regulatory breaches by the bank, as outlined under Section 12 of the Banks and Other Financial Institutions Act 2020.
The move was part of the apex bank’s broader mandate to maintain a stable financial system in Nigeria.
Following the withdrawal of the bank’s license, the NDIC had assured the public that it would commence the payment process for the 2.3 million depositors of Heritage Bank.
The disbursement began just four days after the bank’s liquidation, demonstrating the NDIC’s commitment to swiftly addressing the concerns of affected customers.
According to Nuhu, the use of BVNs as a unique identifier played a crucial role in locating depositors’ alternate accounts in other banks, thereby facilitating the prompt disbursement of funds.
“This feat was achieved using Bank Verification Numbers as a unique identifier to locate depositors’ alternate accounts in other banks,” he stated.
The NDIC continues to work towards ensuring that the remaining depositors receive their funds.
Depositors who are yet to receive their payments are encouraged to resolve any issues related to their accounts, such as obtaining a BVN or lifting any Post-No Debits instructions.
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The statement reads, “In the discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of N5m maximum per depositor within a record time of four days of the bank closure.
“This was achieved using Bank Verification Numbers as a unique identifier to locate depositors’ alternate accounts in other banks.
“This unprecedented achievement of direct payment through BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out forms marks a historic shift for the NDIC in the prompt reimbursement of depositors with payment of about 82.36 per cent of the total insured deposit to date.”
For depositors with more than ₦5 Million, the director explained that the remaining balances (classified as uninsured deposits) would be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed to the defunct bank.
“It is instructive to state that, the remaining 17.64 per cent of the insured deposits yet to be paid were largely depositors whose accounts have post no debits instructions or have no BVN. Others are those with no alternative accounts in other banks or accounts with a KYC limit on the maximum lodgment per day and are yet to come forward for verification.
“However, depositors with balances exceeding Five Million Naira have been paid the initial insured sum of Five Million Naira, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed to the defunct bank,” the statement added.