“Only 4,000 Have N5m”: NDIC Begins Deposit Refund to Heritage Bank’s Customers, Gives Details

• The Nigerian Deposit Insurance Corporation (NDIC) has assured Heritage Bank depositors of swift payment
• NDIC is targeting to pay off outstanding deposits in the failed bank within a week instead of the stipulated 30 days
• The Central Bank of Nigeria revoked Heritage Bank's license due to concerns about its financial performance

The Nigerian Deposit Insurance Corporation (NDIC) has assured Heritage Bank Plc depositors that it is already working on repaying them.

Bello Hassan, the managing director of NDIC, stated this during a briefing outlining the repayment processes on Wednesday, June 5, 2024.

According to Hassan, the repayment process will not take 30 days as stipulated by law, but customers will be settled within one week.

He also disclosed that the corporation will pay approximately N650 billion to 2.3 million depositors of the failed bank starting this week.

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Legit.ng reported that the Central Bank of Nigeria (CBN) on Monday, June 4, revoked the banking licence of Heritage Bank.

According to the CBN, the decision was due to the bank's inability to improve its financial performance.

CBN said:

“The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability."

Heritage Bank customers' payment plan

Speaking further on the repayment process, the NDIC boss said that over 99% of the 2.3 million depositors have N5 million or less in their accounts and will be paid in full.

He explained that only about 4000 depositors have more than N5 million in their accounts.

Such customers will receive an initial N5 million along with others and later be paid more as the NDIC recovers the bank's assets and loans from debtors.

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NDIC added:

"Meanwhile, all depositors who have questions or require further clarifications on their accounts or payments in the closed bank are advised to contact the Liquidator-In-Charge at the following address:

"Nigeria Deposit Insurance Corporation Lagos Office, Mamman Kontagora House (8th Floor) NO. 23A, Marina P. M. B. 12881 Lagos Telephone Nos.: 08023137228, 08037840909 Toll-Free Line: 080063424357."

CBN on plans to close more banks

In a related development, the CBN denied reports circulating online that it plans to revoke Unity, Polaris, and Keystone Bank's licenses.

Since CBN's decision to cancel Heritage Bank's banking license due to violations of its financial rules, there have been rumours that more banks will be targeted.

Nigerians have reacted to the rumours and have asked the apex bank to take action that will serve as a deterrent to others.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng