The Nigeria Deposit Insurance Corporation (NDIC) has provided an update on its efforts to reimburse depositors of the defunct Heritage Bank, revealing that it has successfully paid out 82.36% of insured depositors, particularly those with balances above N5 million. However, the corporation is still working to reach the remaining 17.64% of insured depositors.
According to Bashir Nuhu, the NDIC’s Director of Communication and Public Affairs, the NDIC has been actively trying to contact these remaining depositors, many of whom have accounts with post-no-debit restrictions, lack Bank Verification Numbers (BVN), or do not have alternative accounts. The NDIC has been utilizing phone calls and text messages to connect with these individuals.
Nuhu highlighted that while the NDIC has made significant progress in settling insured deposits, there are challenges associated with uninsured deposits, which make up a larger portion of the total deposits. The NDIC is working to recover assets and debts from Heritage Bank to eventually pay out these uninsured deposits through liquidation dividends.
The NDIC began making payments to depositors within just four days of the bank’s closure, marking a new era in the corporation’s commitment to ensuring prompt reimbursement of depositors. This direct payment method represents a historic shift in the NDIC’s approach, reflecting its dedication to safeguarding depositors’ funds.
Looking ahead, the NDIC plans to continue the process of settling all insured and uninsured deposits before proceeding to pay other creditors according to the legal priority.
Nuhu reaffirmed the corporation’s commitment to protecting depositors’ funds and urged the public to maintain their confidence in the banking system.
This update follows previous assurances by the NDIC that depositors of Heritage Bank would receive their funds promptly, as the corporation continues its efforts to address the challenges posed by the bank’s closure.
