NDIC To Pay Heritage Bank Customers Within One Week

The Nigerian Deposit Insurance Corporation (NDIC) has promised Heritage Bank depositors that their money will be paid within a week.

Bello Hassan, Managing Director of NDIC, claimed this at a conference where he described the payback processes, asserting that the organisation will settle consumers within one week rather than the 30-day period required by law.

According to Hassan, Heritage Bank has N650 billion in total bank deposits and a credit portfolio worth more than N700 billion. He noted that the NDIC is looking forward to securing loan repayment within the next six months.

The NDIC MD stated that all depositors are now being vetted for the onward payment of the insured benefit of five N5 million, while depositors with insured deposits greater than N5 million will be reimbursed upon the sale of the bank’s assets. He estimated the bank’s overall depositors at 2.3 million, with 99 percent having total balances of less than five million naira.

Recall that on June 4, the Central Bank of Nigeria (CBN) terminated Heritage Bank’s banking licence due to the bank’s inability to improve its financial performance.

“The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability” the CBN said.

The NDIC’s spokesperson, Bashir Nuhu, assured depositors with an insured amount of 5 million that their money would be transferred to alternate banks.

However, the apex said Heritage Bank had not improved and “has no reasonable prospects of recovery,” prompting the revocation of the licence.

“Depositors of the bank with alternate accounts within the industry will be paid up to the insured amount of ₦5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account.

“While deposiors with funds above ₦5 million will be paid liquidation dividend upon realisation of the bank’s assets and recovery of debts owed to the bank,” the statement partly read

Step-To-Step Process To Reclaim Funds

All depositors of the defunct bank without alternate bank account in the industry are advised as follows:

1. Visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s license, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums.

Or

II. File online claims by visiting the NDIC website claims page on www.ndic.gov.ng/claims/claims, download and fill the claims forms and upload the required documentation.

2. Verification and Payment of Creditors. Creditors are advised to visit the nearest branch of the bank to file their claims or via the online platform. Please note that the process of payment of creditors will commence immediately after all depositors have been paid.
3. Debtors’ Repayment of Loans: Debtors who have yet to repay loans are advised to contact the Corporation’s Asset Management Department (AMD). Visit the NDIC website for more details.

“The NDIC wishes to assure the entire banking public of its commitment to the continued safety of depositors’ funds in all licensed banks. As such, depositors are urged to continue their banking businesses without fear as banks whose licenses have not been revoked remain safe and sound,” the statement concluded.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli