The Nigeria Deposit Insurance Corporation (NDIC) has begun the liquidation of Heritage Bank Plc following the Central Bank of Nigeria’s (CBN) revocation of the bank’s operating license.
In a press statement released on Monday, Bashir Nuhu, NDIC’s Director of Communication & Public Affairs, assured depositors that their funds are secure. The NDIC is currently verifying customer deposits and will compensate up to N5 million per depositor, depending on their deposit amounts. However, customers with deposits exceeding N5 million will need to wait for the liquidation process to recover additional funds.
The revocation and subsequent liquidation of Heritage Bank’s license align with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020. The NDIC’s process for verifying and paying insured deposits adheres to Section 55, subsections 1 and 2, of the NDIC Act 2023.
Payment Procedures
Depositors with alternate bank accounts will receive payments up to the insured limit of N5 million per depositor, utilizing their Bank Verification Number (BVN) to facilitate efficient transfers.
“Depositors with alternate accounts within the industry will be paid up to N5 million per depositor using their BVN,” the statement explained. “Those with deposits exceeding N5 million will receive liquidation dividends once the bank’s assets are realized and debts recovered.”
For depositors lacking an alternate bank account, the NDIC advises visiting the nearest Heritage Bank branch with proof of account ownership, valid identification (such as a driver’s license, permanent voter’s card, or National Identity Card), and their BVN. This will enable verification of deposits and subsequent payment of insured sums. Additionally, depositors can file claims online via the NDIC website.
Creditor and Debtor Information
Creditors of Heritage Bank are instructed to file their claims either at the nearest bank branch or online. The NDIC has assured that creditor payments will begin immediately after all depositors are compensated.
Debtors with outstanding loans are encouraged to contact the NDIC’s Asset Management Department (AMD) to arrange repayments.
Why Heritage Bank
The CBN’s decision to revoke Heritage Bank Plc’s license was driven by the bank’s persistent financial instability and regulatory non-compliance. Despite multiple supervisory interventions by the CBN to mitigate the bank’s declining performance, Heritage Bank’s continuous underperformance posed a significant threat to financial stability, necessitating the revocation of its license.
This action underscores the CBN’s commitment to maintaining a robust financial system in Nigeria, as mandated by Section 12 of BOFIA 2020.
