The Nigeria Deposit Insurance Corporation (NDIC) has begun the process of paying insured depositors of Heritage Bank following the Central Bank of Nigeria’s (CBN) revocation of the bank’s license.
The NDIC assures customers that their deposits are protected, with a guaranteed payment of up to N5 million per depositor. This process is being carried out in accordance with the NDIC Act 2023 and the Banks and Other Financial Institutions Act (BOFIA) 2020.
Depositors with alternate bank accounts within the industry will receive payments up to the insured limit directly into these accounts. This process will utilize the Bank Verification Number (BVN) to ensure efficient and accurate transfers.
For those who do not have alternate bank accounts, the NDIC advises them to visit the nearest Heritage Bank branch with proof of account ownership and a valid means of identification, such as a driver’s license, voter’s card, or National Identity Card. They should also provide their BVN to facilitate the verification process.
Alternatively, depositors can file claims online through the NDIC website. The NDIC has assured that this online process is secure and user-friendly.
Creditors of Heritage Bank are also advised to submit their claims either at the nearest branch or through the online platform. The NDIC will process these claims after all depositors have been compensated.
Debtors with outstanding loans from Heritage Bank should contact the NDIC’s Asset Management Department (AMD) to arrange repayment. The NDIC has emphasized its commitment to recovering debts owed to the bank.
The CBN’s decision to revoke Heritage Bank’s license was due to the bank’s persistent financial instability and breach of regulatory requirements. The NDIC’s swift action in commencing the liquidation process and ensuring prompt payments to depositors highlights its dedication to maintaining public confidence in the banking system.
