The Nigeria Deposit Insurance Corporation (NDIC) has begun disbursing a maximum of N5 million to each depositor affected by the closure of Heritage Bank.
This payment process utilizes Bank Verification Numbers (BVN) as a means to identify and locate depositors’ alternate accounts in other financial institutions. This initiative follows the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank’s license in June.
The NDIC has been appointed as the liquidator and, in line with Section 12(2) of the BOFIA 2020 and Sections 55(1) and (2) of the NDIC Act 2023, has initiated the verification and payment process for insured depositors.
In fulfilling its mandate to guarantee deposits, the NDIC commenced payments of the insured amount of N5 million per depositor within just four days of the bank’s closure.
Depositors with balances exceeding N5 million have received the initial insured amount of N5 million, while the remaining balances, classified as uninsured deposits, will be distributed as liquidation dividends once the assets of the defunct bank are realized and debts recovered.
This significant achievement of facilitating direct payments through BVN-linked alternate accounts—without requiring depositors to visit NDIC offices or complete forms—represents a historic advancement for the NDIC, which has successfully reimbursed approximately 82.36% of the total insured deposits to date.
It is important to note that the remaining 17.64% of insured deposits yet to be disbursed primarily belong to depositors whose accounts have post no debits (PND) instructions, lack a BVN, or do not have alternative accounts in other banks. Additionally, some accounts are subject to KYC limits on daily maximum lodgments and have not yet come forward for verification.
The NDIC is currently reaching out to these depositors via phone calls and text messages to encourage them to complete the verification process.
The corporation has assured that all depositors with amounts exceeding the maximum insured limit of N5 million will receive timely payments through liquidation dividends derived from the realization of the defunct bank’s assets.
The NDIC has already begun the process of recovering debts and liquidating the investments and physical assets of the defunct bank to ensure prompt reimbursement for uninsured depositors.
Once all insured and uninsured deposits have been fully paid, the NDIC will proceed with payments to creditors in accordance with the priority of claims established by existing laws. It is essential to emphasize that all payments beyond insured deposits are contingent upon the availability and realization of the bank’s assets as liquidation dividends.
The NDIC remains dedicated to safeguarding depositors’ funds across all licensed banks. The public is encouraged to continue their banking activities with confidence, as all other banks are secure and stable.
