The Nigeria Deposit Insurance Corporation of Nigeria (NDIC), on Sunday said it has so far paid 82.64% of insured deposits to Heritage Bank Limited customers in line with its deposit guarantee mandate.
A statement by Bashir A. Nuhu, Director, Communication & Public Affairs at the corporation, said payment of N5m insured deposit each began just four days from when the bank’s license was revoked by the Central Bank of Nigeria (CBN) on June, 2024.
This, he said, “was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks.”
Continuing, he assured that “depositors with balances exceeding N5m have been paid the initial insured sum of N5m, 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.
“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% of the total insured deposit to date.”
The remaining 17.64% of the insured deposits yet to be paid, the corporation added, “were largely depositors whose accounts have post no debits (PND) instructions, or have no BVN.”
Others were said to be “those with no alternative accounts in other banks, or accounts with KYC (Know-Your-Customer) limit on the maximum lodgment per day and are yet to come forward for verification, who are presently being contacted to come forward for verification.
For the uninsured deposits, which it said constitute the larger portion of the total deposits of Heritage Bank, the corporation said it “is already working assiduously to ensure that all depositors with amounts in excess of the maximum insured amount of N5m are timely paid through liquidation dividend from realisation of the defunct bank’s assets.”
The process of debt recovery and realisation of investments and physical assets of the defunct bank, the statement assured further, has already been initiated “to ensure timely reimbursement of the uninsured depositors of the defunct bank.
“Subsequently, after the full payment of both insured and uninsured portion of deposits, the Corporation will proceed with the payment of creditors in accordance with priority of claim as provided in the extant law, it added, stressing that payments other than that of insured deposits, are subject to availability and realisation of assets of the bank in the form of liquidation dividend.
The NDIC, the statement added, “is committed to the safety of depositors’ funds in all licensed banks. Members of the public are enjoined to continue their banking activities without fear, as all other banks remain safe and sound.”
