Nigeria deposit insurer pays N106bn to former Heritage Bank customers

The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has disbursed over N106 billion to depositors of the now-defunct Heritage Bank Limited. The corporation assured customers with outstanding claims that the payment process is still ongoing.

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NDIC has paid over N55 billion in insured deposits (representing accounts with balances within the guaranteed limit of N5 million and below).

In a statement released on Wednesday, the NDIC acknowledged the difficulties faced by some former Heritage Bank depositors and expressed sympathy. The corporation reiterated its commitment to ensuring all eligible depositors receive their funds in accordance with the NDIC Act of 2023. Heritage Bank's license was revoked by the Central Bank of Nigeria on June 3, 2024, citing persistent financial instability, poor performance, and breaches of the Banks and Other Financial Institutions Act (BOFIA) 2020.

The NDIC commenced payments to depositors within four days of the license revocation. Specifically, over N55 billion has been paid in insured deposits, covering accounts with balances up to the guaranteed limit of N5 million. An additional N51 billion, realized from the sale of the bank's assets and recovery of outstanding debts, has been paid as liquidation dividends in two tranches.

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Furthermore, an additional sum of N51 billion, that was realised from the sale of the assets of, and recovery of outstanding debts owed the failed bank, has been paid as liquidation dividends in two tranches.

However, the NDIC explained that some payments remain unresolved due to various issues. These include the absence of Bank Verification Numbers (BVNs), alternative bank accounts, Post No Debit (PND) restrictions, Know Your Customer (KYC) compliance issues, and name mismatches. The corporation is actively working with stakeholders and affected depositors to resolve these cases.

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The NDIC continues to work with concerned stakeholders and some of the affected depositors towards resolving such cases.

Depositors who have not yet received their payments are urged to lodge complaints through the NDIC Helpdesk portal, as the payment process continues. The NDIC aims to ensure a comprehensive resolution for all eligible depositors of the failed bank.

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The corporation urged depositors who have yet to receive their payments to lodge their complaints through the NDIC Helpdesk portal, stressing that the payment process was still ongoing.