The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has successfully reimbursed 82.36% of customers of the now-defunct Heritage Bank, specifically those with deposits under ₦5 million, the maximum insured deposit amount.
In a recent statement, NDIC’s Director of Communications and Public Affairs, Bashir Nuhu, shared that this accomplishment was made possible by utilizing Bank Verification Numbers (BVN) to identify and process payments through alternative bank accounts linked to customers of the closed bank.
“The NDIC began the reimbursement of insured deposits up to ₦5 million per depositor just four days after the bank’s closure,” Nuhu stated. “By leveraging BVNs as a unique identifier, we were able to efficiently locate and transfer funds to depositors’ alternate accounts in other banks.”
For those with deposits exceeding ₦5 million, NDIC has paid the insured portion of ₦5 million. The remaining balances, considered uninsured deposits, will be paid as liquidation dividends once the defunct bank’s assets are sold and debts recovered.
This initiative marks a significant milestone for the NDIC, as it enabled the direct payment of insured deposits via BVN-linked accounts without requiring depositors to visit NDIC offices or fill out forms. As of now, about 82.36% of the total insured deposits have been reimbursed.
The remaining 17.64% of insured deposits that are yet to be paid include accounts that have post-no-debit (PND) instructions, accounts without BVNs, or accounts without alternate banking arrangements. These depositors are being contacted via phone calls and text messages to complete the verification process.
Additionally, the NDIC has begun the process of recovering debts and realizing the investments and physical assets of the defunct Heritage Bank. This will ensure that customers with deposits exceeding ₦5 million will receive their uninsured balances as liquidation dividends in due course.
Once all depositors are fully reimbursed, including those with uninsured deposits, the NDIC will proceed to pay creditors in accordance with the priority of claims as outlined by existing laws. All payments beyond the insured deposits are contingent on the availability and realization of the bank’s assets in the form of liquidation dividends.
