NDICAbout 82.36 percent of the total insured deposit in the defunct Heritage Bank have been paid to the affected depositors to date, the Nigeria Deposit Insurance Corporation (NDIC) has said.
The apex financial sector deposit insurer disclosed t
the remaining 17.64 percent of the insured deposits yet to be paid were largely depositors whose accounts have post no debits (PND) instructions or have no bank verification number (BVN).
Also, the Corporation said others yet to be paid were those with no alternative accounts in other banks or accounts with know your customer (KYC) limit on the maximum lodgment per day and were yet to come forward for verification.
To complete the process, the Director, Communication & Public Affairs, Bashir A. Nuhu, said depositors with accounts with KYC limit were being contacted through telephone calls and text messages for them to come forward for verification.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator with the mandate to verify and pay insured depositors in accordance with Section 12(2) of BOFIA 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2023.
In discharging its deposit guarantee mandate, Nuhu said the Corporation began the payment of the insured deposits of N5m maximum per depositor within four days of the bank closure.
He said the payment was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks.
However, Nuhu said depositors with balances exceeding N5m were paid the initial insured N5m, while the remaining balances (classified as uninsured deposits) would be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed to the defunct Heritage 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,”Nuhu said.
Payment of Uninsured Deposits and Other Claimants
Notwithstanding, the significant progress recorded in the payment of the insured deposits, Nuhu said the Corporation was concerned that uninsured deposits constitute the larger portion of the total deposits of the defunct bank.
Consequently, he said the Corporation was already working to ensure that all depositors with amounts in excess of the maximum insured amount of N5m were timely paid through liquidation dividend from realisation of the defunct bank’s assets.
The Corporation, Nuhu said, has already initiated the process of debt recovery and realisation of investments and physical assets of the defunct bank to ensure timely reimbursement of the uninsured depositors of the defunct bank.
Subsequently, he said after the full payment of both insured and uninsured portion of deposits have been made, the Corporation would proceed with the payment of creditors in accordance with priority of claim as provided in the extant law.
He reiterated that all payments other than that of insured deposits, were subject to availability and realisation of assets of the bank in the form of liquidation dividend.
Assuring that the NDIC was committed to the safety of depositors’ funds in all licensed banks, Nuhu said members of the public must continue their banking activities without fear, as all other banks remain safe and sound.
