Heritage Bank Customers Receive Partial Payments Following Bank’s Closure

The Nigeria Deposit Insurance Corporation (NDIC) has notified customers of the defunct Heritage Bank that they will receive partial payments, excluding insured deposits, subject to the realization of the bank’s assets and liquidation dividends.

According to the NDIC’s statement, the Corporation has already initiated the process of debt recovery and realization of investments and physical assets to ensure timely reimbursement of uninsured depositors.

The NDIC was able to refund all insured customers within four days of the bank’s closure using direct payment through Bank Verification Number (BVN)-linked alternate accounts.

However, 17.64% of insured deposits remain unpaid, with these depositors being contacted through phone calls and text messages to come forward for verification. Verification can be done by visiting any of the Corporation’s offices.

In its discharge of the deposit guarantee mandate, the NDIC paid insured deposits of up to N5 million per depositor within a record four days of the bank’s closure. Using BVN as a unique identifier, the Corporation located depositors’ alternate accounts in other banks.

Depositors with balances exceeding N5 million were paid the initial insured sum of N5 million, while remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed.

The NDIC will proceed with payment of creditors in accordance with priority of claim as provided in the extant law once the full payment of both insured and uninsured deposits is completed.

The Corporation has assured depositors that they will be kept updated on the progress of the payment process.