NDIC Clarifies Delay in Refunding Some Heritage Bank Customers
- NDIC faces delays in refunding Heritage Bank's corporate customers due to BVN discrepancies linked to directors rather than corporate accounts
- Managing Director Hassan Bello has also assured that all insured deposits up to N500,000 would be reimbursed
- NDIC is urging affected corporate customers to visit their offices or access their website to complete verification forms for timely processing of refunds
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian Deposit Insurance Corporation (NDIC) said that the challenges with Heritage Bank's corporate customers' Bank Verification Numbers (BVN) are the reason for delays in refunding customers one month after the Central Bank of Nigeria (CBN) revoked the bank's license.
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Legit.ng reported that the CBN revoked Heritage Bank's license on June 3, citing the bank's inability to meet financial regulatory requirements.
This move left thousands of customers in financial limbo as they awaited clarity on the status of their deposits.
NDIC sends messages to customers
Speaking at the maiden annual conference of the Association of Capital Market Academics of Nigeria (ACMAN) in Abuja, Hassan Bello, NDIC Managing Director, acknowledged that while insured amounts for depositors had begun to be paid out, corporate customers faced hurdles due to BVN discrepancies.
Bello stated:
"As you know, the Central Bank of Nigeria revoked the license of Heritage Bank Limited in June and it was handed over to the NDIC for liquidation,.
"We have already taken over the assets of the bank and initiated payments to depositors and creditors as stipulated by law.
"However, our efforts are hampered by issues concerning corporate customers whose BVNs are linked to directors rather than the corporate accounts."
He explained that BVNs tied to directors often led to mismatches during account searches, complicating the verification process for refunding corporate deposits.
Bello urged affected corporate clients to visit NDIC offices nationwide or access the corporation's website to complete verification forms promptly.
He added:
"We are committed to ensuring all depositors and creditors receive their due refunds. Once BVN issues are resolved, we will proceed with liquidation dividends, and we have already initiated asset valuation processes for this purpose."
UBA, others to debit customers' bank accounts
Earlier, Legit.ng also reported that the federal government instructed all Nigerian banks to debit customers with domiciliary accounts.
The debit is for old foreign currency transactions carried out between 2021 and 2023 by customers and will be remitted to the government.
Access Bank, GTB, UBA, Zenith, and other commercial banks have sent messages to customers to expect the debits.
In a notice titled 'Important Notice: Electronic Money Transfer Levy Deductions Begin on Foreign Currency Transactions,' the First Bank of Nigeria announced that deductions would start promptly and be forwarded to the FIRS.
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Source: Legit.ng
