The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to pay 2.3 million depositors of Heritage Bank approximately N650 billion starting this week.
This move follows the recent withdrawal of Heritage Bank’s operating licence.
NDIC Managing Director Mr. Bello Hassan made this announcement during a briefing in Abuja. He explained that the majority of Heritage Bank’s depositors, 99.9 per cent, have less than N5 million in their accounts. This means the NDIC expects to process these insured deposits swiftly.
There are about 4,000 depositors with more than N5 million in their accounts. Before losing its license, Heritage Bank had issued over N700 billion in loans. To manage the payment process, NDIC has deployed 400 staff members across the bank’s 116 branches and regional offices.
Hassan advised that depositors with alternate bank accounts do not need to visit a bank branch. The NDIC will use their Bank Verification Number (BVN) to credit these accounts directly. However, depositors without alternate accounts must visit NDIC to provide the necessary information to receive their funds.
Unfortunately, most Heritage Bank employees have lost their jobs due to the bank’s closure. Only a few staff members, particularly those with knowledge of the bank’s operations, will be retained.
Mr. Hassan stated that NDIC now has enhanced powers to recover assets from Heritage Bank’s debtors. These powers include the ability to arrest, prosecute, and blacklist defaulters.
