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The Nigeria Deposit Insurance Corporation (NDIC) has clarified why some customers of the now-defunct Heritage Bank have yet to receive their insured deposits. The delay, according to the NDIC, is due to challenges including database inconsistencies, account restrictions, and incomplete customer information.
The Managing Director of NDIC, Mr. Bello Hassan, addressed the issue during the 2024 NDIC Editors Forum held in Lagos. He assured affected depositors that the Corporation is actively working to resolve these issues and ensure prompt payment.
Database Inconsistencies and Regulatory Compliance
Mr. Hassan highlighted several factors contributing to the delays:
“This development is a result of reasons ranging from reconciling inconsistencies in the defunct bank’s depositor database to the absence of Bank Verification Numbers (BVN), placement of restrictions on some accounts, and, in some cases, name mismatches.
“The Corporation is therefore working assiduously to resolve these challenges to ensure that depositors are promptly paid.”
He emphasized the importance of complying with Know Your Customer (KYC) regulations set by the Central Bank of Nigeria (CBN).
“Depositors must ensure strict compliance with all KYC regulations. This will not only promote seamless transactions with their banks but also ensure timely reimbursement in the event of bank closures.”
Payment of Insured and Uninsured Deposits
The NDIC reaffirmed its commitment to reimbursing depositors within the insured deposit limit of ₦5 million and also working towards the payment of uninsured deposits.
“Having largely reimbursed depositors their insured deposits, the Corporation is committed to ensuring that depositors with balances exceeding ₦5 million are also paid the balance of their deposits,” Hassan stated.
He explained that uninsured deposits account for a significant portion of Heritage Bank’s total deposits. The NDIC is actively recovering debts and liquidating the defunct bank’s assets to fund these payments.
Debt Recovery and Asset Realization
The NDIC has initiated steps to recover debts and monetize the investments and physical assets of Heritage Bank. This process aims to generate funds for the settlement of uninsured deposits.
“The Corporation has already initiated the process of debt recovery and realisation of investments and physical assets of the defunct bank to ensure timely payment to the uninsured depositors,” Hassan added.
Commitment to Customer Reimbursement
The NDIC reiterated its dedication to protecting depositors and ensuring financial stability within Nigeria’s banking sector. Through continued efforts in debt recovery and asset management, the Corporation seeks to fulfill its mandate of guaranteeing the safety of depositors’ funds.
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