The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has successfully reimbursed a notable 82.36 percent of customers who had accounts with the now-defunct Heritage Bank. This reimbursement specifically pertains to the customers who had deposits that fell below the maximum insured threshold of N5 million. This significant milestone reflects the NDIC’s ongoing commitment to protecting depositors and ensuring that they receive their due funds in a timely manner.
In a statement released yesterday, the Director of Communications and Public Affairs at the NDIC, Bashir Nuhu, explained the efficient processes that enabled the corporation to achieve this remarkable outcome. He highlighted that the successful reimbursement was facilitated through the utilization of Bank Verification Numbers (BVN), which allowed the NDIC to link customers’ alternate accounts in other banks with their Heritage Bank accounts. This approach has proven to be effective in streamlining the payment process for depositors of the closed bank.
Bashir Nuhu stated, “The Corporation initiated the disbursement of insured deposits, with a maximum amount of Five Million Naira (N5,000,000) allotted per individual depositor, within an impressively short timeframe of just four days following the closure of the bank.” This rapid response showcases the NDIC’s dedication to providing support to affected depositors as efficiently as possible. Utilizing BVNs as a unique identifier facilitated the identification and location of depositors’ alternate bank accounts, enabling a swift reimbursement process.
Moreover, it is essential to note that depositors holding account balances that exceeded the Five Million Naira insurance limit have received the initial insured amount of Five Million Naira. However, any remaining balances from those accounts, which fall under the category of uninsured deposits, will only be disbursed as liquidation dividends. This will take place once the NDIC is able to realize the assets that belonged to the defunct Heritage Bank and recover outstanding debts owed to it.
“This unprecedented achievement, marked by the direct payment process using BVN-linked alternate accounts, has eliminated the necessity for depositors to physically visit NDIC offices or fill out any complex forms. This approach signifies a historic transition for the NDIC, emphasizing its ability to promptly reimburse depositors. To date, approximately 82.36% of the total insured deposits have been paid out to eligible customers,” he elaborated.
Despite the substantial progress, NDIC has indicated that the remaining 17.64% of insured deposits that have yet to be reimbursed primarily involve depositors whose accounts are subject to post no debits (PND) instructions or who lack a BVN associated with their accounts. Furthermore, this percentage includes those customers who have no alternate accounts with other banks or whose accounts are limited by KYC regulations regarding the maximum amount that can be lodged per day. Many of these depositors have yet to respond to verification requests.
The NDIC is currently in the process of reaching out to these specific categories of depositors. The corporation is utilizing telephone calls and text messages to encourage these individuals to come forward to complete the verification process, ensuring they can receive their entitled funds without unnecessary delays.
In related news, there have been reports of discrepancies in account names that have been affecting the timely payment of Heritage Bank customers, as highlighted by the NDIC. There are also ongoing discussions regarding calls for investigations into the underlying causes that led to the collapse of Heritage Bank. Additionally, the NDIC announced that it has begun payments to depositors of Heritage Bank this week, emphasizing its commitment to expediting this process.
Bashir Nuhu further added that the NDIC has initiated a comprehensive debt recovery process. This includes the realization of investments and physical assets once owned by the defunct bank, with the aim of generating adequate funds that will allow for the timely reimbursement of customers who have deposits that exceed the insured limit of N5 million.
Once the NDIC completes full payments for both the insured and uninsured portions of the deposits, the organization will then focus on addressing the payments owed to creditors. This will be conducted according to the established priority of claims as defined by the existing laws. It is important to reiterate that any payments made outside of the insured deposits will be contingent upon the availability of the defunct bank’s assets and the successful realization of those assets in the form of liquidation dividends, ensuring that all stakeholders are treated fairly during this process.
