Procedure in Detail: How Heritage Bank Clients Will Receive ₦5 Million in Insured Funds — NDIC

The liquidation process of Heritage Bank Plc has been initiated by the Nigeria Deposit Insurance Corporation (NDIC), as stated in a press release on Monday following the revocation of the commercial bank license by the Central Bank of Nigeria (CBN). In accordance with Section 12(2) of BOFIA, 2020, the NDIC has been appointed as the liquidator of the failed bank.

Bashir Nuhu, the spokesperson for the NDIC, provided reassurance to depositors with an insured amount of ₦5 million, stating that they will receive their funds through alternate banks. Depositors who have alternate accounts 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. On the other hand, depositors with funds exceeding ₦5 million will receive a liquidation dividend once the bank’s assets are realized and debts owed to the bank are recovered.

To reclaim funds, depositors of the defunct bank who do not have alternate bank accounts in the industry are advised to follow the step-by-step process outlined below:

1. Visit the nearest branch of the bank with proof of account ownership, along with verifiable means of identification such as a driver’s license, permanent voter’s card, or National Identity Card. They should also bring their alternate account details and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums.
2. File online claims by visiting the NDIC website claims page at www.ndic.gov.ng/claims/claims. Download and complete the claims forms, and upload the required documentation.
3. Verification and Payment of Creditors: Creditors are advised to file their claims at the nearest branch of the bank or through the online platform. It is important to note that the payment process for creditors will commence once all depositors have been paid.
4. Debtors’ Repayment of Loans: Debtors who have outstanding loans are advised to contact the Corporation’s Asset Management Department for further guidance.

By following these steps, depositors can initiate the process of reclaiming their funds from the defunct Heritage Bank Plc.