By Tony Obiechina, Abuja
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of recovering loans acquired by debtors of the recently liquidated Heritage Bank as part of moves to pay uninsured depositors of the bank.
The Managing Director of the NDIC, Mr Bello Hassan, disclosed this during the 2024 NDIC Editors Forum held in Lagos on Saturday.
Themed “Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance,” the forum focused on enhancing public trust and promoting financial stability.
Aside from paying the depositors who had more than the insured five million naira with the bank before its liquidation, Hassan said the Corporation would also ensure that the creditors of the bank are paid.
According to the Managing director, “The Corporation has already initiated the process of debt recovery and realization of investments as well as fiscal assets of the defunct bank to ensure timely payment to the uninsured depositors of the defunct bank”.
Recall that the Central Bank of Nigeria (CBN) recently revoked the licence of Heritage Bank Plc, citing the bank’s persistent financial instability and breach of regulatory requirements.
The decision was part of the CBN’s mandate to maintain a sound financial system in Nigeria, as outlined under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Hassan, who was represented by NDIC Executive Director of Operations, Mr. Mustapha Ibrahim, pointed out that while the Corporation succeeded in paying most of the Bank’s insured depositors within four days after the liquidation, it is facing some challenges in paying some of them.
According to him, several issues such as lack of Bank Verification Number (BVN) by the depositors, restriction on accounts, and lack of alternate bank accounts, among others have caused the delays in paying those depositors.
He said the corporation is working seriously to resolve these challenges to ensure that depositors are promptly paid.
“I would like to seize this opportunity to emphasize the importance for depositors to ensure strict compliance with all KYC regulations as prescribed by the Central Bank of Nigeria.
“This will not only promote hitch-free transactions with their banks, but it will also go a long way in ensuring prompt reimbursement in the event of bank closure,” he said.
Following the revocation of the Heritage Bank’s licence on June 3, the NDIC announced in August that it had successfully paid 82.36% of the total insured deposits to customers of the Bank.
In a statement by Bashir A. Nuhu, Director of Communication & Public Affairs, the NDIC confirmed that it has successfully initiated payments to depositors, with a maximum of five million Naira per depositor being disbursed.
The milestone he explained was achieved within just four days of the bank’s closure, utilizing Bank Verification Numbers (BVN) to locate depositors’ alternative accounts in other banks.
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