NDIC Disburses N5 Million Each to 82% of Heritage Bank Depositors

The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has successfully disbursed N5 million each to 82.36% of the total customers of the now-defunct Heritage Bank. This payout is part of the compensation process for depositors following the bank's liquidation.

However, the NDIC noted that 17.64% of the insured deposits are still pending. These pending payments are primarily linked to accounts that either have Post-No-Debit instructions or lack a Bank Verification Number (BVN).

Heritage Bank’s banking license was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024, due to ongoing financial instability and regulatory violations. The CBN’s decision was made in accordance with its authority under Section 12 of the Banks and Other Financial Institutions Act 2020, aimed at ensuring stability in the country’s financial system.

After the license revocation, the NDIC began the payment process for the bank’s 2.3 million depositors. According to NDIC officials, disbursements to affected customers started just four days after the bank’s closure. The NDIC utilized BVNs as unique identifiers to locate depositors' alternate accounts in other banks, facilitating a swift payout.

“In fulfilling its deposit guarantee mandate, the Corporation initiated the payment of insured deposits, up to a maximum of N5 million per depositor, within a record time of four days after the bank’s closure,” the statement read. “This unprecedented achievement of direct payment through BVN-linked alternate accounts, without requiring depositors to visit NDIC offices or fill out forms, marks a historic shift for the NDIC, with about 82.36% of the total insured deposits paid to date.”

For depositors with balances exceeding N5 million, the NDIC clarified that the remaining amounts, classified as uninsured deposits, will be paid as liquidation dividends once Heritage Bank’s assets are realized and debts owed to the bank are recovered.

The NDIC also noted that the remaining 17.64% of insured deposits that have not yet been paid are mainly associated with accounts that have restrictions, lack BVNs, or do not have alternate accounts in other banks. These depositors are encouraged to come forward for verification to facilitate their payments.