NDIC embarks on assets valuation of defunct Heritage Bank

…pays 86% of insured depositors of Heritage Bank

The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has carried out a nationwide assets valuation of the defunct Heritage Bank as part of ongoing efforts to compensate depositors following the bank’s closure.

This was revealed during NDIC’s special day at the Lagos International Trade Fair by Bello Hassan, NDIC’s managing director and CEO, who was represented by Nuhu Bashir Alhassan, director of communication and public affairs.

Bello Hassan emphasised NDIC’s commitment to safeguarding the stability of the banking sector, especially when a bank fails.

“Over the years, the NDIC has been instrumental in promoting stability by ensuring that when a bank fails, depositors are promptly compensated,” he said.

The recent revocation of Heritage Bank’s license by the Central Bank of Nigeria(CBN) on June 3, 2024, highlighted NDIC’s critical role, with Hassan pointing out that 86 percent of the bank’s depositors have already received payments.

To expedite these payments, NDIC used the Bank Verification Number (BVN) as a unique identifier, enabling direct crediting of insured amounts into depositors’ alternative bank accounts within just four days of the closure.

“This approach facilitated the swift disbursement of insured guaranteed sums to depositors,” Hassan noted.

He also mentioned that this process aligns with recent regulatory adjustments, as the NDIC had recently raised the deposit insurance coverage for depositors of Deposit Money Banks from N500,000 to N5 million.

The increased coverage, according to Hassan, has greatly mitigated the negative effects of bank failure on affected depositors.

While the NDIC’s primary focus has been on insured deposits, the corporation is also working to compensate depositors with balances exceeding N5 million.

Hassan explained, “We have already initiated the process of realising the bank’s assets and recovering debts to facilitate the timely payment of uninsured depositors by way of liquidation dividends.” He reassured depositors that NDIC is committed to a thorough and fair compensation process, ensuring that larger depositors receive a share of the recovered funds.

Beyond depositors, Hassan also addressed the NDIC’s responsibility toward the creditors of Heritage Bank. Creditors, he said, would receive payment only after all depositors have been fully compensated.

“This orderly process, based on asset realisation and prioritisation of claims, is essential in maintaining public confidence in the financial landscape,” he remarked, reinforcing NDIC’s dedication to a structured and transparent process.

Hassan urged depositors who have not yet received their insured amounts to step forward. “We encourage any remaining depositors to come forward with their BVN, proof of account ownership, identification, and alternative account details,” he advised. Claims, he added, can be submitted through multiple channels, including the NDIC website, email, and social media platforms.

Hassan extended a warm invitation to the public to visit NDIC’s pavilion at the trade fair for further information. He expressed his gratitude to the president and executive members of the Lagos Chamber of Commerce, royal dignitaries, esteemed guests, and the media for their presence. “I wish you all a fruitful trade fair and a safe journey back to your respective destinations,” he concluded, marking NDIC’s dedication to financial stability and public trust.