Business & Economy

NDIC Begins Liquidation of Heritage Bank, Depositors to Receive Up to N5 Million


The Nigerian Deposit Insurance Commission (NDIC) has initiated the liquidation process for the failed Heritage Bank, starting with the verification and payment of depositors.

Following the revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN), the NDIC, now acting as the bank’s liquidator, announced the commencement of this process. The CBN’s decision was based on the bank’s non-compliance with Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA), 2020, and its inability to stabilize its financial performance.

According to Sidi Ali, the Acting Director of Corporate Communication at the CBN, the bank had been unable to recover despite various supervisory measures, leading to the revocation of its license to maintain financial stability.

Bashir Nuhu, the NDIC’s Director of Communication & Public Affairs, stated that depositors with alternate accounts within the banking industry would receive up to N5 million per depositor using their Bank Verification Number. Those with deposits exceeding N5 million will receive additional payments upon the liquidation of the bank’s assets.

Depositors without alternate bank accounts are instructed to visit the nearest branch with proof of account ownership and identification for verification and payment. Creditors are also advised to file their claims either at the bank branches or via the NDIC’s online platform. The NDIC emphasized that debtors of the failed bank should continue repaying their loans.

The NDIC reassured the public of its commitment to safeguarding depositors’ funds and maintaining the stability of licensed banks. The Bank Customers Association of Nigeria has expressed support for the CBN’s decision, highlighting its importance for the safety of the banking sector.

Dr. Uju Ogubunka, President of the Bank Customers Association of Nigeria, explained that the CBN’s decision was necessary to prevent broader financial instability. He noted that while the revocation might inconvenience customers, the NDIC’s involvement would ensure that those with credit in their accounts are reimbursed.

Professor Uche Uwaleke, an expert in Capital Markets, echoed these sentiments, commending the CBN’s proactive approach and emphasizing the importance of protecting depositors and employees.

The House of Representatives also pledged to oversee the process to ensure the protection of depositors’ funds. House spokesman Akin Rotimi assured the public of the House’s commitment to its oversight functions, stressing the importance of transparency and stakeholder engagement throughout the liquidation process. House committee chairmen Mohammed El-Rufai and Ahmed Jaha reaffirmed their dedication to monitoring the liquidation process and safeguarding depositor interests.

Mike Ojo

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