*The Management of the Nigeria Deposit Insurance Corporation also clarify the depositors of defunct Heritage Bank yet to be paid ‘insured deposits’ are largely those without Bank Verification Numbers, or alternate accounts in other banks, as the Corporation moves to access the Nigeria Inter-Bank Settlement System database to effect payments

Gbenga Kayode | 绿帽献妻

The Nigeria Deposit Insurance Corporation (NDIC) has said it is intensifying efforts at ensuring timely payments to depositors of the defunct Heritage Bank with balances exceeding the maximum deposit insurance limit of N5 million.

The Corporation, which disclosed this in a statement regarding an update on payment of uninsured sums to depositors of Heritage Bank (In-liquidation) at the weekend.

The Central Bank of Nigeria (CBN) June 3, 2024, had revoked the bank鈥檚 operating licence, and appointed the NDIC as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55 (1 & 2) of the NDIC Act 2023.

In line with its statutory mandate, the corporation immediately commenced the bank鈥檚 liquidation聽聽 process, including the verification and payment of insured deposits to all depositors.

The NDIC, however, noted that significant progress has been made in reimbursing the insured deposits of the N5 million maximum per depositor thus far.

It was noted that the clarification came against the backdrop of concerns raised by depositors about the payments.

The Management of NDIC stated that depositors yet to be paid their insured deposits are largely those without Bank Verification Numbers (BVNs) or alternate accounts in other banks, to enable the Corporation fetch the accounts from the聽聽 Nigeria Inter-Bank聽聽 Settlement System (NIBSS) database to effect payments.

On depositors with Post No Debit restrictions

The NDIC also stated that other depositors in this category are those with post no debit (PND) restrictions on their accounts.

According to the Corporation, some聽 accounts also have Know Your Customer (KYC) limitations, such as Tier 1 accounts that places聽聽 restrictions on the maximum lodgment of funds, while others have name mismatches that require resolution.

It further stated that some depositors who have been paid may also be unaware that they have received payments due to lack of mobile phone transaction alerts on their alternate accounts into which the insured sums were paid by the NDIC.

It urged depositors to check their alternate bank accounts, as some payments may have been processed without their immediate awareness.

NDIC to pay ‘balance in excess of N5m insured sum’

In regard to the commencement of payment to uninsured depositors, the NDIC said while depositors with balances above N5 million have been paid “the initial insured sums of the amount”, the remaining balance in excess of the insured sum of the N5 million already reimbursed, would be paid as “liquidation dividends” in accordance with the聽聽 Corporation鈥檚 statutory聽聽 mandate.

The Corporation has made substantial progress in disposing the physical assets, as well as recovering some of the debts of the failed bank to聽聽 ensure that depositors with balances above the maximum insured limit receive their payments as soon as possible, the statement noted.

The NDIC further stated: 鈥淎s a clear demonstration of this commitment, the corporation commenced the realisation of physical assets and investments as well as aggressive recovery of the risk assets, concurrently with聽聽 the verification and payment聽聽 of insured sums.

鈥淭o ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, and聽 major national newspapers, as well as through radio and television announcements.”

It explained: 鈥淭he corporation鈥檚 approach of simultaneously paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.

鈥淲ith the considerable progress recorded in the asset realisation, the corporation will declare the first tranche of liquidation dividends in April 2025 which will be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023 on the priority of claims.”

The NDIC added: 鈥淔or clarity, the referenced section states that: 鈥榃here an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution鈥�.

鈥淐onsequently, other claimants of the failed Heritage Bank, including聽聽 creditors, and聽聽 shareholders, will be聽聽 considered for payment of聽聽 liquidation dividends only聽聽 after all depositors have been fully reimbursed.

鈥淭he NDIC wishes to reiterate its commitment to the safety of depositors鈥� funds in all licensed banks.鈥�

The Corporation urged the public to continue their banking activities without fear, as all other banks remain safe and sound.

It also encouraged affected depositors with further enquiries to contact the Claims Resolution Department of the NDIC for more clarification on the process.

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