NDIC Commences Payout to Heritage Bank Depositors with Balances Above N5 Million

The Nigeria Deposit Insurance Corporation (NDIC) has initiated payments to Heritage Bank depositors with balances exceeding N5 million. This follows the Central Bank of Nigeria’s (CBN) revocation of the bank’s license on June 3, 2024. The revocation was due to the bank’s persistent financial instability and regulatory breaches.

The NDIC, acting as the liquidator, confirmed that payments to depositors began just four days after the bank’s liquidation. This was conveyed via a statement signed by the Director of Communication and Public Affairs, Bashir Nuhu, on Sunday in Abuja.

The disbursements were reportedly made directly through BVN-linked accounts, eliminating depositors needing to visit NDIC offices or complete additional forms. So far, about 82.36 per cent of the total insured deposits have been paid out.

For those with balances exceeding N5 million, classified as uninsured deposits, the NDIC explained that the remaining funds would be disbursed as liquidation dividends upon realising the defunct bank’s assets and recovery of debts.

The NDIC also noted that the remaining 17.64 per cent of insured deposits yet to be mainly paid involve depositors with account issues, such as no debit instructions or missing BVN links. These depositors are urged to come forward for verification to facilitate payment.

It is instructive to state that the remaining 17.64 per cent of the insured deposits yet to be paid were largely depositors whose accounts have post no debits instructions or have no BVN. Others are those with no alternative accounts in other banks or accounts with a KYC limit on the maximum lodgment per day and are yet to come forward for verification, the statement said.

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