CBN Revokes Heritage Bank’s Lisence, NDIC Ensures Payout of Insured Deposits

The Nigeria Deposit Insurance Corporation (NDIC) has begun the process of liquidating Heritage Bank following the revocation of its banking license by the Central Bank of Nigeria (CBN) on June 3, 2024. The NDIC has assured depositors that it will pay out up to N5 million in insured deposits.

In a statement released by Bashir Nuhu, Director of Communication & Public Affairs, the NDIC outlined the steps being taken in response to the bank’s closure.

“Following the revocation of Heritage Bank Plc’s banking license by the Central Bank of Nigeria (CBN) today, June 3, 2024, and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator, the Corporation wishes to announce to depositors of the bank in particular and the banking public in general, that it has commenced the liquidation process,” Nuhu said.

The NDIC’s actions are in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA), 2020, and Section 55 sub-sections 1 & 2 of the NDIC Act 2023. This involves the immediate verification and payment of insured deposits to the bank’s depositors.

Depositors who have alternative accounts within the banking sector will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account. For depositors with funds exceeding N5 million, the NDIC will pay liquidation dividends after the bank’s assets are sold and debts recovered.

For depositors without alternative bank accounts, the NDIC has provided a clear process. They are advised to visit the nearest Heritage Bank branch with proof of account ownership and a verifiable means of identification, such as a driver’s license, permanent voter’s card, or National Identity Card, along with their BVN and alternate account details. Alternatively, they can file claims online by visiting the NDIC’s website, downloading the claims forms, and uploading the necessary documentation.

Creditors of the defunct bank are also instructed to file their claims either at the nearest bank branch or through the online platform. Payments to creditors will commence immediately after all depositors have been compensated.

For debtors who have not yet repaid their loans, the NDIC advises contacting the Corporation’s Asset Management Department (AMD) for more details, which can also be found on the NDIC website.

The NDIC has reassured the public of its commitment to safeguarding depositors’ funds in all licensed banks. It emphasized that banks with valid licenses remain secure and reliable, encouraging the public to continue their banking activities with confidence.