"Ensure Timely Payment": NDIC Issues New Update on Heritage Bank Depositors Funds

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  • The NDIC has reassured depositors of the crashed Heritage Bank that their funds will be paid promptly
  • The corporation also highlighted moves to clear payment delays months after the CBN revoked the bank's license
  • It added that it has initiated the process of debt recovery and realisation of investments as well as physical assets

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.

The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has reassured depositors of the former Heritage Bank that efforts are underway to address delays in accessing guaranteed amounts exceeding N5 million.

Hassan provided this assurance on Saturday at the 2024 NDIC Editors Forum held in Lagos.

The NDIC noted that depositors with funds exceeding the insured limit of N5 million are being reimbursed through liquidation dividends. Photo credit - Heritage Bank, AllianceSource: UGC

The event, themed “Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance,” focused on bolstering the nation’s financial stability.

Legit.ng earlier reported that the Central Bank of Nigeria (CBN) revoked Heritage Bank's licenses in June this year after the bank failed to meet its financial obligations.

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The apex bank subsequently appointed the NDIC as the bank's liquidator.

Exercising its statutory powers as the liquidator of failed banks, the commission announced the commencement of the sale of landed properties belonging to the failed bank.

NDIC moves to clear payment delays

Mr Hassan, represented by NDIC’s Executive Director, Operations, Mustapha Ibrahim, highlighted the corporation’s commitment to expediting payments.

He noted that depositors with funds exceeding the insured limit of N5 million are being reimbursed through liquidation dividends obtained from asset recovery and debt collection initiatives.

Hassan said:

“The corporation has initiated the process of debt recovery and realisation of investments as well as physical assets of the defunct bank to ensure timely payment of uninsured deposits.”

He further stated that the NDIC's obligations also include addressing the claims of creditors of the defunct bank, who will be compensated once all depositors have been fully paid.

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Highlighting the NDIC's mandate, he stressed its role in protecting depositors, particularly those less informed, while ensuring the stability of the financial system.

Established more than 30 years ago, the NDIC, he said, plays a critical role in safeguarding depositors' funds and reducing risks within the banking sector.

According to Premium Times, Hassan noted that the conference theme aligns with the corporation's ongoing interactions with business editors and financial journalists.

Mr. Hassan praised the media for its significant contribution to the effective implementation of the deposit insurance system.

Multichoice writes off $21m in Heritage Bank

In related news, Legit.ng earlier reported that MultiChoice has written off $21 million it had in Heritage Bank.

This information was cited in the company's interim financial results for the half-year ending September 30, 2024.

MultiChoice's decision to write off the money highlights the challenges that companies in Nigeria face, especially given the country's fragile economy.