The Nigeria Deposit Insurance Corporation (NDIC) has taken significant steps to reimburse depositors of the defunct Heritage Bank. According to a statement released by the NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, insured deposits of N5 million each have been disbursed to 82.36% of the bank’s total customers.

On June 3, 2024, the Central Bank of Nigeria revoked Heritage Bank Plc’s banking license due to persistent financial instability and regulatory breaches.The NDIC, in line with its mandate, initiated the payment process for the 2.3 million depositors of Heritage Bank.

The NDIC achieved an unprecedented feat by directly paying insured deposits through Bank Verification Numbers (BVN)-linked alternate accounts within four days of the bank’s closure. This eliminated the need for depositors to visit NDIC offices or fill out forms.

For depositors with balances exceeding N5 million, the remaining amounts (classified as uninsured deposits) will be paid as liquidation dividends.

These payments will occur upon the realization of the defunct bank’s assets and recovery of debts owed to the bank.

The 17.64% of insured deposits yet to be paid mainly belong to depositors with post-no-debits instructions or those lacking a BVN.

Some depositors also have accounts with a Know Your Customer (KYC) limit on maximum lodgment per day and are yet to come forward for verification.

The NDIC’s efficient handling of this situation marks a historic shift in promptly reimbursing depositors, ensuring financial stability for affected customers.