The Nigeria Deposit Insurance Corporation (NDIC) has successfully distributed insured deposits of N5 million each to the majority of customers from the now-defunct Heritage Bank.
This payout has reached approximately 82.36% of the bank’s total customers.
However, the remaining 17.64% of insured deposits are yet to be disbursed, primarily due to issues such as Post-No Debits instructions on accounts or the absence of Bank Verification Numbers (BVN).
The Central Bank of Nigeria (CBN) revoked Heritage Bank’s operating license on June 3, 2024, citing ongoing financial instability and regulatory violations as the reasons behind the decision.
The CBN’s action aligns with its responsibility under the Banks and Other Financial Institutions Act 2020 to ensure the stability of the financial system in Nigeria.
Following the license withdrawal, the NDIC initiated the process of compensating Heritage Bank’s 2.3 million depositors.
Payments commenced just four days after the bank’s liquidation, facilitated by the use of BVNs to identify depositors’ accounts in other banks, allowing for direct payment without the need for depositors to visit NDIC offices or complete forms.
The NDIC also clarified that for those with deposits exceeding N5 million, the remaining balance, categorized as uninsured deposits, will be paid out as liquidation dividends once the bank’s assets are liquidated and outstanding debts are recovered.
The delay in payments to the 17.64% of customers is primarily due to accounts with restrictions or incomplete verification details.
