The Nigeria Deposit Insurance Corporation (NDIC) says it will begin the payment of the first tranche of liquidation dividends to depositors of Heritage Bank from April.
The Managing Director NDIC, Mr Bello Hassan, said this on Wednesday at the ongoing NDIC Special Day holding alongside the 36th Enugu International Trade.
Represented by Mrs Pamela Robert, South-East Coordinator of NDIC,
Hassan said that NDIC together with the CBN maintained stability and enforced compliance with banking regulations while exercising effective oversight over insured deposit-taking institutions.
According to him, NDIC is now ready to pay the first tranche of liquidation dividends this month of April.
“I wish to reassure all depositors that the NDIC has the financial and operational capacity to fully reimburse all depositors as recoveries are made,” he said.
It would be recalled that Heritage Bank operating licence was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024.
The Managing Director NDIC, Mr Bello Hassan’s message was delivered by Mrs Pamela Robert, South-East Coordinator of NDIC.
The managing director emphasised that as more recoveries were made, subsequent tranches of liquidation dividends would follow.
“Our record in bank liquidation is reassuring. NDIC has successfully declared fully liquidation dividends to depositors of 20 previously failed banks.
“This reflects our unwavering commitment to depositor protection and our proven capacity to manage bank failures effectively.
“Therefore, I urge depositors of closed banks, particularly Heritage Bank, who have not yet received their payments, to come forward and provide necessary documentation supporting ownership of the account.
These, he said, included the Bank Verification Number (BVN), and alternate bank account number for payment of the insured sum.
“Claims can be submitted through our website, email, social media platforms, or by visiting any of our Zonal Offices,” he said.
He said that the NDIC had consistently played a crucial role in maintaining financial stability by ensuring depositors receive prompt compensation when banks failed.
“A recent example is the revocation of Heritage Bank’s operating license by the CBN.
“In line with its statutory mandate, the Corporation immediately began liquidation process, including verification and payment of insured deposits of up to a maximum of ₦5 million per depositor within four days.
Those yet to be paid are largely depositors without BVNs or alternate accounts in other banks, or those with Post-No-Debit (PND) restrictions.
“Some accounts also have KYC issues, such as Tier 1 limits or name mismatches, while a few depositors may be unaware that payments have been made due to lack of transaction alerts on the alternate accounts,” he added.
Chief Odeiga Jideonwo, the President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) commended NDIC for its operations.
The president however, called on the corporation to improve on its level of compensation paid to depositors when banks went under.
“It is indeed a big challenge and we hope that the NDIC would increase the percentage of money paid to depositors depending on the total amount of deposit each customer has in the bank,” Jideonwo said(NAN)
