The Nigerian Deposit Insurance Corporation (NDIC) has revealed that 17.6 percent of Heritage Bank depositors are yet to receive payments, following the bank's liquidation.
The corporation, in a statement by its spokesman Bashir Nuhu on Sunday, attributed the delay to verification issues.
The Central Bank of Nigeria (CBN) announced on June 3 the revocation of the bank's license.
The CBN said Heritage Bank violated section 12 of the Banking and Other Finance Act as it failed to improve its financial performance, “a situation which constitutes a threat to financial stability.”
The NDIC said it has since repaid approximately 82.36 per cent of the total insured deposit to date.
The NDIC said it initiated the payment process using Bank Verification Numbers (BVN) to transfer up to 5 million Naira (£5,000,000) per depositor to its alternative bank account within a record time of four (4) days from the closure of the bank. This method, which enabled depositors to receive funds without visiting NDIC offices or filling out forms, marked a significant achievement in the history of the Corporation.
“This unprecedented achievement of direct payment through BVN-linked alternative accounts without the need for depositors to visit NDIC offices or fill out forms marks a historic step forward for NDIC in promptly repaying depositors with the payment of approximately 82.36 per cent of the total insured deposit to date.
Article page with promotion of financial support
“It is illustrative to note that the remaining 17.64 percent of insured deposits that have not yet been paid out were mostly from depositors whose accounts have instructions not to make debits (PND) or do not have BVN. Others are those who do not have alternative accounts in other banks or accounts with a KYC limit on the maximum deposit per day and have not yet been submitted for verification,” he said.
The NDIC said it is actively trying to reach out to these depositors through phone calls and text messages, urging them to complete the verification process. The corporation offered online verification options and the ability to visit NDIC offices in person to resolve any outstanding issues.
Payment of uninsured deposits
Meanwhile, the NDIC also turned its attention to the broader set of uninsured deposits – those exceeding the insured limit of five million naira.
The corporation said it has initiated the process of debt recovery and asset realisation of the defunct Heritage Bank, in order to distribute liquidation dividends to these depositors.
“Subsequently, once both insured and uninsured deposits have been paid in full, the Corporation will proceed to pay creditors in accordance with the order of priority of credits provided for in current legislation. We would like to reiterate that all payments other than those of insured deposits are subject to the availability and realization of the bank's assets in the form of liquidation dividends,” it said.
The NDIC said it is committed to the security of depositors' funds in all licensed banks.
He assured the public that Nigeria's banking sector remained stable and that depositors' funds in other licensed banks were safe.