The NDIC explains that 17.64% of Heritage Bank’s depositors have not yet been paid due to ongoing processes and challenges in the bank’s financial recovery. The situation continues to affect many customers as efforts are made to resolve the issue.
According to the Nigeria Deposit Insurance Corporation (NDIC), 82.36% of all insured depositors from the former Heritage Bank have been refunded following its license revocation by the Central Bank of Nigeria (CBN) on June 3, 2024.
A representative for NDIC’s appointed liquidator, Bashir Nuhu, announced on Sunday that the outstanding 17.64% of insured deposits waiting to be reimbursed mainly belong to customers who have either given instructions against account withdrawals (known as “post no debits” or PND) or do not possess Bank Verification Numbers (BVN).
According to Nuhu, the NDIC initiated the payout of insured deposits up to a maximum value of N5m per depositor in an unprecedented four-day timeframe following the bank’s closure. The BVN was utilized as a distinctive identifier for determining depositors’ alternate accounts held at other financial institutions.
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The statement explained that depositors who have balances exceeding Five Million Naira were given the initial insured amount of Five Million Naira. The remaining balance was considered as uninsured deposits and will be paid through liquidation dividends when the defunct bank’s assets are fully realized, and debts owed to them recovered.
The NDIC has made history by facilitating direct payment through BVN-linked alternate accounts, eliminating the need for depositors to visit their offices or complete forms. This unparalleled accomplishment signifies a significant transformation in promptly reimbursing depositors, as approximately 82.36% of all insured deposits have been paid out thus far.
It can be enlightening to point out that the majority of depositors who have not received their remaining 17.64% insured deposits are those who either have post no debits (PND) instructions on their accounts or do not possess a BVN.
There are people who have no other bank accounts or only have accounts with a maximum daily lodgment limit due to KYC restrictions, but they haven’t completed the verification process yet.
The Corporation is currently reaching out to depositors in this category via phone calls and text messages, urging them to undergo verification.
The Corporation is putting in diligent effort to ensure that depositors with accounts exceeding the maximum insured amount of N5 million receive timely payment via liquidation dividends sourced from the defunct bank’s asset realizations.
To ensure timely reimbursement of uninsured depositors from the defunct bank, the Corporation has already begun the debt recovery and realization of investments and physical assets.
The statement stated that once the insured and uninsured portions of deposits are fully paid, the Corporation will proceed to pay its creditors in accordance with their priority claims as specified by current laws.
