Heritage Bank: 17.6% of depositors unpaid due to verification issues

The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that 17.6 per cent of Heritage Bank depositors had yet to receive payments, following the bank’s liquidation.

The corporation, in a statement by its spokesperson, Bashir Nuhu, on Sunday, attributed the delay to verification issues.

The Central Bank of Nigeria (CBN) on 3 June announced the revocation of the bank’s licence.

CBN said Heritage Bank violated section 12 of the Banks and Other Financial Act, the CBN as it could not improve its financial performance, “a situation which constitutes a threat to financial stability”.

The NDIC said it has since reimbursed about 82.36 per cent of the total insured deposit to date.

The NDIC said it initiated the payment process, utilising Bank Verification Numbers (BVN) to transfer up to N5 million (£5,000,000) per depositor into their alternate bank account within a record time of four (4) days of the bank closure. This method, which allowed depositors to receive funds without visiting NDIC offices or filling out forms, marked a significant achievement in the Corporation’s history.

“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 per cent of the total insured deposit to date.

“It is instructive to state that, the remaining 17.64 per cent of the insured deposits yet to be paid were largely depositors whose accounts have post no debits (PND) instructions or have no BVN. Others are those with no alternative accounts in other banks or accounts with KYC limit on the maximum lodgment per day and are yet to come forward for verification,” it said.

The NDIC said it is actively attempting to contact these depositors through telephone calls and text messages, urging them to complete the verification process. The corporation offered both online verification options and the possibility of visiting NDIC offices in person to resolve outstanding issues.

Payment of Uninsured Deposits

In the meantime, the NDIC also turned its attention to the larger pool of uninsured deposits—those exceeding the insured limit of five million naira.

The corporation said it has initiated the process of recovering debts and realising assets from the defunct Heritage Bank, to distribute liquidation dividends to these depositors.

“Subsequently, after the full payment of both insured and uninsured portion of deposits, the Corporation will proceed with the payment of creditors in accordance with priority of claim as provided in the extant law. We would like to reiterate that all payments other than that of insured deposits are subject to availability and realisation of assets of the bank in the form of liquidation dividend,” it said.

The NDIC said it is committed to the safety of depositors’ funds in all licensed banks.

It reassured the public that Nigeria’s banking sector remained stable and that depositors’ funds in other licensed banks were safe.