The NDIC has disbursed ₦5 million each to 82.36% of customers affected by the closure of Heritage Bank. The payments, initiated shortly after the bank's license was revoked, underscore NDIC's commitment to depositor protection, though some accounts remain pending due to regulatory issues.
In a significant move to protect depositors, the Nigeria Deposit Insurance Corporation (NDIC) announced it has disbursed ₦5 million each to 82.36% of the customers of the now-defunct Heritage Bank. This action follows the Central Bank of Nigeria’s (CBN) decision on June 3, 2024, to revoke Heritage Bank's license due to ongoing financial instability and regulatory breaches. The revocation was carried out under Section 12 of the Banks and Other Financial Institutions Act 2020, aimed at maintaining financial stability in Nigeria.
The NDIC, tasked with safeguarding depositors' funds, commenced payments just four days after Heritage Bank's closure, leveraging Bank Verification Numbers (BVNs) to identify alternate accounts for the swift disbursement. This marks a historic achievement for the NDIC, allowing direct payments without the need for depositors to visit NDIC offices or fill out forms, a notable shift in the agency's approach to reimbursement.
However, 17.64% of the insured deposits remain pending. These accounts primarily belong to customers with Post-No Debit instructions or those lacking a BVN. The NDIC is continuing its efforts to resolve these issues to ensure all eligible depositors receive their funds.
For depositors with balances exceeding ₦5 million, the NDIC has provided the insured sum, with the remaining amounts categorized as uninsured deposits. These will be paid as liquidation dividends once Heritage Bank's assets are liquidated and debts are recovered.
This initiative by the NDIC underscores its commitment to protecting depositors and maintaining confidence in Nigeria's banking sector, especially in times of financial turmoil. The swift action has been widely praised, though the challenges with pending payments highlight the complexities of banking regulation in Nigeria.
