Defunct Heritage Bank Customers get N5m each

The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has successfully distributed insured deposits of up to N5 million to 82.36% of customers affected by the closure of Heritage Bank.

The NDIC noted that the remaining 17.64% of deposits are still pending due to issues such as Post-No Debit instructions on accounts or the absence of Bank Verification Numbers (BVNs).

How 16 northerners were killed, lynched in Edo over false accusations

I’m concerned over killing of northerners in Edo – Kwankwaso

Police repels bandits attack in Zamfara, kills notorious bandit Dan-Isuhu

The Central Bank of Nigeria (CBN) revoked Heritage Bank’s license on June 3, 2024, citing ongoing financial instability and regulatory violations.

This action was taken under Section 12 of the Banks and Other Financial Institutions Act 2020 to ensure financial stability in the country.

In response to the bank’s liquidation, the NDIC began paying out the insured deposits four days later.

This process utilized BVNs to track down depositors’ alternate accounts across other banks, enabling a swift disbursement without requiring depositors to visit NDIC offices or complete additional paperwork.

The NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, highlighted that this process marks a significant advancement in the corporation’s ability to promptly reimburse depositors.

Also Read: Secretary To Edo State Government Resigns

For those with deposits exceeding N5 million, only the insured portion of N5 million has been paid so far.

The remaining amounts, classified as uninsured deposits, will be distributed as liquidation dividends once the defunct bank’s assets are liquidated and outstanding debts are collected.

The 17.64% of insured deposits still pending payment largely belong to depositors with restricted account instructions, missing BVNs, or those who have not yet verified their information.