Heritage Bank: NDIC Discloses Compensation for Customers After CBN Revokes License

The Nigeria Deposit Insurance Corporation (NDIC) has announced that depositors of Heritage Bank that have alternate accounts within the industry will be paid up to the insured amount of ₦5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account.

The NDIC added that depositors with funds in excess of ₦5 million will be paid liquidation dividends upon realization of the bank’s assets and recovery of debts owed to the bank.

The Nigeria Deposit Insurance Corporation (NDIC) has announced that depositors of Heritage Bank that have alternate accounts within the industry will be paid up to the insured amount of ₦5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account.
The NDIC added that depositors with funds in excess of ₦5 million will be paid liquidation dividends upon realization of the bank’s assets and recovery of debts owed to the bank.

It added that depositors without alternate bank accounts would also be taken care of but have to visit the nearest bank branch and proof of account ownership, with verifiable means of identification or do the verification online and upload necessary documents.

The process of payment of creditors of Heritage Bank will commence immediately after all depositors have been paid according to the NDIC.

The NDIC Director of Communication and Public Affairs, Bashir Nuhu, disclosed the updates in a statement on Monday.

The statement requested that all depositors who have questions or require further clarification on their accounts or payments in the failed bank contact the NDIC.

The development follows the revocation of the operating license of Heritage Bank, by the Central Bank of Nigeria (CBN), which was announced in a statement released on Monday, June 3, by Ag. Director, Corporate Communications, CBN, Hakama Sidi Ali.

As a follow up on the licence revocation, the CBN appointed NDIC as the liquidator of the failed bank.

Giving details of what to expect, Nuhu said, “Following the revocation of the banking license of Heritage Bank Plc by the Central Bank of Nigeria (CBN) today, June 3, 2024 and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator, pursuant to Section 12(2) of BOFIA, 2020, the Corporation wishes to announce to depositors of the bank in particular and the banking public in general, as follows:

“The NDIC has Commenced the Liquidation of Heritage Bank Plc:

“In accordance with Section 55 sub-section 1 & 2 of the NDIC Act 2023, the Corporation has commenced liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank depositors.

“Depositors of the bank that have alternate account within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account. While depositors with funds in excess of N5 million will be paid liquidation dividend upon realization of the bank’s assets and recovery of debts owed to the bank.

Verification and Payment of Depositors Without Alternate Bank Account:

“All depositors of the defunct bank without alternate bank account in the industry are advised as follows:

“Visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s license, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums or file online claim by visiting the NDIC website claims page on www.ndic.gov.ng/claims/claims, download and fill the claims forms and upload the required documentation.

“Verification and Payment of Creditors:

“Creditors are also advised to visit the nearest branch of the bank to file their claims or via the online platform. Please note that the process of payment of creditors will commence immediately after all depositors have been paid.

Debtors’ Repayment of Loans:

“Debtors that are yet to complete the repayment of loans are advised to contact the Corporation’s Asset Management Department (AMD). Visit the NDIC website for more details.

“The NDIC wishes to assure the entire banking public of its commitment to the continued safety of depositors’ funds in all licensed banks. As such, depositors are urged to continue their banking businesses without fear as banks whose licenses have not been revoked remain safe and sound.”