Lack of BVN stalls 18% Heritage Bank’s depositors from reimbursement – NDIC

The Nigeria Deposit Insurance Corporation (NDIC) says 17.64 percent of Heritage Bank customer are yet to be paid, even though it has made significant progress in paying out insured deposits to customers of the defunct bank, with 82.36 percent of the insured deposits already disbursed.

However, the remaining 17.64 percent of insured deposits are yet to be claimed due to various issues, including accounts with Post No Debits (PND) instructions, lack of Bank Verification Numbers (BVN), and accounts that exceed Know Your Customer (KYC) deposit limits.

In a statement signed by Bashir Nuhu, director, communication and public relations, the NDIC said it is actively reaching out to these depositors, encouraging them to come forward for verification. The Corporation has been contacting these customers via telephone calls and text messages. Verification can be completed by visiting any of the NDIC offices or online at www.ndic.gov.ng/claims.

In addition to insured deposits, the NDIC addressed the issue of uninsured deposits, which represent a larger portion of the total deposits in the defunct bank. The Corporation is working diligently to ensure that depositors with amounts exceeding the maximum insured limit of N5 million are paid through liquidation dividends. This process involves the recovery of debts and the realisation of the bank’s investments and physical assets.

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The NDIC assured depositors that after the full payment of both insured and uninsured deposits, creditors will also be compensated according to the priority of claims as stipulated by law. However, the Corporation emphasised that payments beyond the insured deposits are contingent on the availability and realisation of the bank’s assets in the form of liquidation dividends.

Reaffirming its commitment to the safety of depositors’ funds, the NDIC encouraged the public to continue their banking activities without fear, assuring them that all other banks remain safe and sound.

Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the Nigeria Deposit Insurance Corporation (NDIC) was appointed as liquidator and the Corporation, in accordance with Section 12(2) of BOFIA 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2023, immediately commenced the process of verification and payment to insured depositors.

The statement reads, “In discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of N5 million maximum per depositor within a record time of four days of the bank closure. This was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks. However, depositors with balances exceeding N5 million have been paid the initial insured sum of N5 million, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realisation of the defunct bank’s assets and recovery of debts owed to the defunct bank. This unprecedented achievement of direct payment through BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out forms, marks a historic shift for the NDIC in the prompt reimbursement of depositors with payment of about 82.36 percent of the total insured deposit to date.”