The Nigeria Deposit Insurance Corporation (NDIC) announced on Monday that it has commenced the liquidation process of Heritage Bank Plc following the revocation of the bank’s license by the Central Bank of Nigeria (CBN).
The NDIC assured depositors that insured deposits of up to N5 million per depositor would be paid promptly.
In a statement, Bashir Nuhu, NDIC’s Director of Communication and Public Affairs, confirmed that the liquidation is in accordance with Section 55 Sub-sections 1 and 2 of the NDIC Act 2023.
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Nuhu explained that the CBN revoked Heritage Bank’s license on June 3, 2024, due to the bank’s inability to improve its financial performance, which posed a threat to financial stability.
The statement detailed the steps NDIC is taking to ensure depositors receive their funds:
Payment of Insured Deposits: Depositors with alternate accounts in the industry will receive up to N5 million using their Bank Verification Number (BVN) to locate their alternate accounts. Those with funds exceeding N5 million will receive liquidation dividends after the bank’s assets are realized and debts recovered.
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Verification Process: Depositors without alternate bank accounts are advised to visit the nearest Heritage Bank branch with proof of account ownership and valid identification for verification and payment. Alternatively, claims can be filed online through the NDIC’s website.
Payment to Creditors: Creditors are also advised to file their claims either at the nearest bank branch or via the online platform. Payments to creditors will begin after all depositors have been compensated.
Debtors’ Repayment: Debtors who have not completed loan repayments should contact the NDIC’s Asset Management Department for further instructions.
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The NDIC reassured the public of its commitment to safeguarding depositors’ funds, emphasizing that other banks whose licenses remain intact are safe and sound for banking activities.
Grassroots Parrot earlier reported the CBN justification for the license revocation of Heritage Bank by highlighting the bank’s failure to recover despite various supervisory measures. The CBN’s decision aims to protect the financial system and maintain public confidence.