NDIC Disburses N5 Million Each to 82% of Heritage Bank Depositors

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The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has successfully disbursed N5 million each to 82.36% of the total customers of the now-defunct Heritage Bank. This comes as part of efforts to compensate depositors following the bank's liquidation.

However, the NDIC noted that 17.64% of the insured deposits are still pending payment. These accounts mainly belong to depositors whose accounts have Post-No Debits instructions or lack a Bank Verification Number (BVN).

This update was provided in a statement signed by the NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, on Sunday in Abuja.

Heritage Bank's banking license was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024, due to persistent financial instability and regulatory breaches. The CBN’s decision was in line with its mandate under Section 12 of the Banks and Other Financial Institutions Act 2020, which aims to maintain a stable financial system in the country.

Following the license revocation, the NDIC commenced the payment process for the bank’s 2.3 million depositors. According to Nuhu, disbursement to affected customers began just four days after the bank's closure. The NDIC used BVNs as unique identifiers to locate depositors' alternate accounts in other banks, enabling a swift payout.

“In the discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of N5m maximum per depositor within a record time of four days of the bank closure,” the statement read. “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 per cent of the total insured deposit to date.”

For depositors with more than N5 million, the NDIC clarified that the remaining balances, classified as uninsured deposits, would be paid as liquidation dividends upon the realization of Heritage Bank’s assets and recovery of debts owed to the bank.

The NDIC also mentioned that the remaining 17.64% of insured deposits yet to be paid are largely associated with accounts that have restrictions, lack BVNs, or do not have alternate accounts in other banks. These depositors are encouraged to come forward for verification to facilitate their payment.