NDIC says over N106bn paid to Heritage Bank depositors

The Nigeria Deposit Insurance Corporation (NDIC) announced on Wednesday that it has distributed over N106 billion to depositors of the defunct Heritage Bank Limited. The announcement comes as part of the corporation's ongoing efforts to resolve claims from individuals and entities affected by the bank's collapse. According to the NDIC, payments were initiated shortly after the Central Bank of Nigeria (CBN) revoked the bank’s operating license on 3 June 2024, citing persistent financial instability, poor performance, and violations of legal requirements under the Banks and Other Financial Institutions Act (BOFIA) 2020. Following the revocation, the NDIC began processing claims within four days. It stated that over N55 billion was allocated to account holders whose balances fell within the insured limit of N5 million. Additionally, an extra N51 billion was distributed as liquidation dividends, derived from asset sales and debt recoveries, in two separate installments. These figures represent the total amount disbursed so far, though the NDIC noted that some claims remain pending due to administrative challenges. Among the obstacles preventing complete resolution of claims are missing Bank Verification Numbers (BVNs), lack of valid bank accounts, Post No Debit (PND) restrictions, and discrepancies in customer names. The NDIC emphasized its commitment to addressing these issues, stating it is working directly with affected parties and relevant stakeholders to facilitate smoother claim settlements. Customers who have not yet received their payments are encouraged to submit grievances via the NDIC Helpdesk portal, which serves as the primary channel for tracking progress. The Heritage Bank closure marked a significant moment in Nigeria’s banking sector, highlighting the risks associated with non-compliance with regulatory standards. The CBN’s decision to revoke the bank’s license followed years of operational struggles, including liquidity concerns and governance lapses. The NDIC’s intervention underscores the role of regulatory bodies in safeguarding depositor interests during financial crises. While the current payouts provide immediate relief, the lingering unresolved claims reflect broader systemic challenges in financial services. Depositors who were unable to access their funds cited frustration over delays and confusion regarding eligibility criteria. Some expressed concern over the complexity of the verification process, particularly for elderly clients or those lacking digital literacy. Despite these hurdles, many welcomed the NDIC’s transparency and willingness to engage with affected individuals. The corporation’s public statements aim to reassure the public that the process is both active and progressing. Looking ahead, the NDIC plans to continue its outreach efforts, focusing on streamlining procedures and enhancing communication with affected depositors. It has also hinted at exploring additional avenues for fund recovery, including collaboration with other financial institutions and legal authorities. As the payment process unfolds, the NDIC will likely face continued scrutiny, especially given the scale of the payout and the number of unresolved claims. The situation remains fluid, with the potential for further developments in the coming weeks.