The Nigeria Deposit Insurance Corporation (NDIC) has reassured customers of Heritage Bank that their deposits are safe following the bank’s closure. This reassurance was provided by Bello Hassan, NDIC’s Managing Director, during the 2024 NDIC Editors Forum in Lagos.
Hassan, represented by Mustapha Ibrahim, NDIC’s Executive Director (Operations), explained that following the revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed liquidator to manage the bank’s orderly resolution. The NDIC swiftly began reimbursing insured deposits of up to N5 million per depositor within just four days of the bank’s closure, using Bank Verification Numbers (BVNs) to locate and process payments.
This swift payout aligns with the NDIC’s enhanced deposit insurance coverage, which was increased from N500,000 to N5 million. The coverage has minimized the impact of the bank’s failure on most depositors. Hassan emphasized that efforts are underway to pay depositors with balances exceeding the insured amount through liquidation dividends from the bank’s assets and debt recovery processes.
The NDIC also reassured creditors, noting that they will be paid after depositors are fully reimbursed. The liquidation process continues as the NDIC works to realize assets and recover debts to ensure timely payouts.
