The Nigeria deposit insurance corporation (NDIC) will begin making payments to customers of the defunct Heritage bank on Monday.
The NDIC say depositors with less than ₦5 million will begin receiving payments next week while those above the said sum will have to wait for their balance until assets of the liquidated bank are disposed off and money generated, before they are paid.
The NDIC’s actions is meant to ensure the stability and confidence in Nigeria’s banking system, providing a safety net for depositors and maintaining public trust in the financial sector.
The NDIC, in a statement issued on Monday, said it commenced the liquidation process in pursuant to Section 12(2) of BOFIA, 2020, and in accordance with Section 55 sub-section 1 & 2 of the NDIC Act 2023.
To be verified, the Corporation said: “depositors of the bank that have alternate account within the industry will be paid up to the insured amount of ₦5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account. While depositors with funds in excess of N5 million will be paid liquidation dividend upon realization of the bank’s assets and recovery of debts owed to the bank.”
For the verification and payment of depositors without alternate bank account, the NDIC urged them to “visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s license, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums.”
The central bank of Nigeria (CBN) on Monday revoked the operating license of the bank.
According to the apex bank, heritage failed in its obligations.
A statement by CBN spokesperson Hakama Sidi-Ali said: “the bank’s board and management failed to improve its financial performance, posing a risk to the financial stability of the country. Despite various supervisory measures taken by the CBN to help the bank recover, heritage bank continued to struggle without any reasonable prospects of recovery”.
