NDIC Assures Heritage Bank Depositors of Swift Payment for Uninsured Balances

In a significant move to address concerns of depositors with balances exceeding the insured limit of N5 million, the Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to expediting payments. Following the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank’s license on June 3, 2024, the NDIC was appointed as liquidator under Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023.

According to Hawwau Gambo, Acting Head of Communication & Public Affairs, the NDIC promptly initiated the liquidation process, ensuring the verification and reimbursement of insured deposits. Depositors with balances up to the maximum insured sum of N5 million have largely received their payments. However, challenges persist for those without a Bank Verification Number (BVN), alternate bank accounts, or those facing post-no-debit (PND) restrictions. Additionally, accounts with Know Your Customer (KYC) limitations, name mismatches, and Tier 1 account restrictions have also contributed to delays.

To resolve these issues, depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate knowledge due to a lack of transaction alerts.

Commencement of Payment for Uninsured Deposits

Depositors with balances exceeding N5 million will receive their remaining funds through liquidation dividends, in accordance with the NDIC’s statutory mandate. To facilitate this, the Corporation has been aggressively disposing of the bank’s physical assets and recovering outstanding debts. The NDIC has also advertised the asset disposal process extensively through its website, social media platforms, national newspapers, radio, and television channels to ensure transparency.

As part of its accelerated liquidation process, the NDIC will declare the first tranche of liquidation dividends in April 2025. Payments will be made on a pro-rata basis in compliance with Section 72 of the NDIC Act 2023, which prioritizes deposit liabilities above other claims. Only after all depositors have been fully reimbursed will other claimants, including creditors and shareholders, receive payments from the remaining liquidation proceeds.

The NDIC reassures the public of its unwavering commitment to safeguarding depositors’ funds across all licensed banks. Nigerians are encouraged to conduct their banking transactions with confidence, as the nation’s banking sector remains stable and secure.

For further inquiries, affected depositors can reach the NDIC via email at claimscomplaints@ndic.gov.ng or contact the Claims Resolution Department on weekdays between 9:00 a.m. and 5:00 p.m. at the following numbers: 0810 422 0807, 0810 931 3326, 0903 819 7064, 0906 465 7140, and 0903 727 3810.