NDIC disburses N5 million to each customer of defunct Heritage Bank

This update was provided by Bashir Nuhu, Director of Communication and Public Affairs, in a statement issued on Sunday in Abuja.

On June 3, 2024, the Central Bank of Nigeria (CBN) revoked Heritage Bank Plc’s license due to ongoing financial instability and regulatory violations. This decision was in accordance with Section 12 of the Banks and Other Financial Institutions Act 2020, which aims to ensure financial system stability in Nigeria.

Following the revocation, the NDIC began the process of reimbursing the 2.3 million depositors of the defunct bank. Disbursements started just four days after the bank’s closure. The NDIC utilized BVNs to efficiently locate depositors’ alternate accounts in other banks, significantly speeding up the process.

The statement highlighted that the NDIC’s prompt payment process, achieved without requiring depositors to visit NDIC offices or complete additional forms, represents a major advancement in the Corporation’s ability to quickly reimburse depositors. To date, about 82.36% of insured deposits have been successfully paid out.

Depositors with more than N5 million will receive the initial insured amount of N5 million, while the remaining uninsured balances will be distributed as liquidation dividends once the bank’s assets are liquidated and debts recovered.

The remaining 17.64% of insured deposits are pending primarily due to issues such as Post-No-Debit instructions, missing BVNs, or accounts with KYC limits. The NDIC urges these depositors to come forward for verification to facilitate the release of their funds.