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The Nigeria Deposit Insurance Corporation (NDIC) has swiftly disbursed 82.36% of insured deposits to customers of the recently liquidated Heritage Bank. This comes in the wake of the Central Bank of Nigeria’s (CBN) decision to revoke the bank’s license in June, appointing the NDIC as the official liquidator.
In a statement released on Sunday, the NDIC announced that payments to verified depositors commenced just four days after the bank’s closure. This prompt action was facilitated by the use of Bank Verification Numbers (BVNs) to trace depositors’ alternate accounts across other financial institutions. Customers with balances up to the insured maximum of N5 million per account holder received immediate reimbursement.
The NDIC clarified that depositors with balances exceeding the N5 million insurance limit have so far been compensated only up to the insured portion of their funds. The remaining balances, categorized as uninsured deposits, will be paid out as liquidation dividends once the bank’s assets are realized and outstanding debts are recovered.
“This unprecedented achievement of direct payment through BVN-linked alternate accounts, without requiring depositors to visit NDIC offices or fill out forms, marks a historic shift for the NDIC in the prompt reimbursement of depositors,” the corporation stated, noting that it has successfully disbursed funds to more than 82% of depositors to date.
The NDIC further noted that the remaining 17.64% of insured deposits yet to be paid are primarily held by account holders who had either not conducted recent transactions, lacked BVNs, or did not have alternate accounts in other banks. The corporation is actively contacting these depositors through phone calls and text messages, urging them to complete the necessary verification process.
Regarding uninsured deposits, which make up a substantial portion of the total deposits at Heritage Bank, the NDIC reassured depositors that efforts are underway to ensure full compensation. The corporation has initiated the process of debt recovery and the realization of Heritage Bank’s investments and physical assets, which will fund the reimbursement of uninsured depositors.
Additionally, the NDIC emphasized its commitment to settling creditors after all depositors have been fully compensated, in accordance with the priority of claims mandated by law. However, it cautioned that all payments beyond the insured deposits depend on the availability and realization of the bank’s assets, which will be distributed as liquidation dividends.
The NDIC’s rapid response following the closure of Heritage Bank underscores its commitment to protecting depositors, ensuring that the majority of affected customers have already received their insured funds, with clear plans in place to address the remaining balances.
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