The Nigerian Deposit Insurance Corporation (NDIC) has announced that it has begun paying depositors of the now-liquidated Heritage Bank. Bello Hassan, the NDIC’s managing director, made this announcement during a press conference in Abuja on Wednesday, assuring depositors that their payments will be made within the next seven days.
This announcement follows the Central Bank of Nigeria (CBN) revoking Heritage Bank’s operational license on Monday due to its failure to improve its financial performance. Subsequently, the NDIC was appointed as Heritage Bank’s liquidator.
Hassan stated that the NDIC aims to complete payments to insured depositors within 30 days of being appointed liquidator, as Section 28 of the NDIC Act mandates. However, the Corporation is expediting the process to make initial payments within one week.
“We are already in the payment settlement process for insured customers within one week. Our preliminary findings indicate that the total bank deposits at Heritage Bank stand at N650 billion, while its loan portfolio is around N700 billion,” Hassan said. He added that the bank’s total depositors number 2.3 million, with 99% maintaining a total balance of less than N5 million, within the NDIC’s insured deposit threshold.
Hassan assured depositors they would receive all their money back, noting that only about 4,000 people had more than N5 million in their accounts. For customers with deposits exceeding N5 million, Hassan explained, “They will receive N5 million now, and the remaining balance will be paid later when the NDIC recovers more funds from the bank’s assets and loans. All payments for insured deposits will commence this week.”
He further stated that all depositors are currently being verified for the onward payment of insured benefits up to N5 million. At the same time, those with deposits exceeding this amount will be paid the remaining balance upon the sale of Heritage Bank’s assets.
The NDIC managing director also revealed that the Corporation is working to ensure that loan repayments are completed within the next six months. He highlighted that Heritage Bank has about 116 branches nationwide and that creditors will be paid from the bank’s asset sales proceeds.
