The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that it has paid more than N106 billion to depositors of the defunct Heritage Bank Limited, while assuring customers with unresolved claims that payments are still ongoing.
In a statement released on Wednesday, the corporation acknowledged the difficulties faced by some former depositors of Heritage Bank and expressed sympathy for them. NDIC reiterated its commitment to ensuring that all eligible depositors receive their funds in line with the provisions of the NDIC Act, 2023.
Background of Heritage Bank's License Revocation
On 3 June 2024, the Central Bank of Nigeria (CBN) revoked Heritage Bank's license due to the bank's persistent financial instability, poor performance, and a breach of Section 12(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020. Following this, NDIC commenced payment to depositors within four days of the revocation.
Breakdown of Payments
According to NDIC, it has paid over N55 billion in insured deposits, which represents accounts with balances within the guaranteed limit of N5 million and below. Additionally, an extra N51 billion, realised from the sale of the bank's assets and recovery of outstanding debts, has been paid as liquidation dividends in two tranches.
This brings the total payments to over N106 billion, providing significant relief to depositors who had their funds locked in the failed bank.
Unresolved Claims and Challenges
Despite the substantial payments, some outstanding payments remain unresolved due to several issues. These include the absence of Bank Verification Numbers (BVNs) or alternative bank accounts, Post No Debit (PND) restrictions, Know Your Customer (KYC) issues, and name mismatches.
NDIC stated that it continues to work with concerned stakeholders and some affected depositors to resolve such cases. The corporation urged depositors who have yet to receive their payments to lodge their complaints through the NDIC Helpdesk portal, stressing that the payment process is still ongoing.
Impact on Depositors and Next Steps
The payments are crucial for depositors who were left in limbo after the bank's collapse. NDIC's proactive approach in starting payments within days and continuing to disburse funds highlights its commitment to protecting depositors' interests. Affected depositors are advised to verify their account details and ensure all documentation is in order to expedite the resolution of their claims.
As the process continues, NDIC remains dedicated to ensuring that all eligible depositors receive their funds, providing a safety net in the banking sector.
