The Nigeria Deposit Insurance Corporation (NDIC) has announced that depositors of the now-liquidated Heritage Bank will start receiving their insured deposits starting this week.
The revelation was made by the NDIC Managing Director, Mr. Bello Hassan, during an ongoing press conference in Abuja.
Mr Hassan assured that over 99 percent of the affected 2.3 million depositors, who have balances of N5 million or less, would receive their full insured deposits promptly. ADULAWO NEWS reports that the move is set to significantly mitigate the impact on a vast majority of the bank’s clientele.
However, for the approximately 4,000 depositors whose account balances exceed the N5 million threshold, an initial payout of N5 million will be disbursed as part of the first phase of payments.
Mr. Hassan clarified that these depositors would receive further payments as the NDIC progresses with recovering the bank’s assets and outstanding loans.
The assurance was given in the wake of the Central Bank of Nigeria (CBN) ‘s decision to revoke Heritage Bank’s operating license.
The apex bank, in a statement released on Monday, June 3, by its Ag. Director, Corporate Communications, Hakama Sidi Ali, said the decision to revoke Heritage Bank’s license is in line with its responsibility to uphold a stable financial system in Nigeria and utilise its authority under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
This action, she noted was deemed necessary due to the bank’s violation of Section 12 (1) of BOFIA, 2020.
Ali noted that the bank’s Board and Management’s inability to enhance its financial performance has posed a threat to financial stability.