NDIC chases Heritage Bank debtors

• Published On: 24 November 2024 at 21:28

As part of its measures to compensate uninsured depositors, the Nigeria Deposit Insurance Corporation has initiated steps to recover debts from the creditors of the recently liquidated Heritage Bank.

Alhaji Bello Hassan, the NDIC's Managing Director, made the announcement on Saturday at the 2024 NDIC Editors Forum in Lagos.

The forum, titled "Strengthening Nigeria's Financial Safety Net: The Role of Deposit Insurance," sought to boost public trust and promote financial stability.

Hassan said that, in addition to reimbursing depositors who exceed the insured limit of N5 million, the NDIC will ensure that the defunct bank's creditors are paid on schedule. He explained that the Corporation has already started recovering debts and realizing the bank's fiscal assets in order to make these payments.
Hassan, represented by Mustapha Ibrahim, NDIC Executive Director of Operations, addressed the payment delays for some insured clients. While most depositors received reimbursements within four days of the bank's closure, some were delayed due to issues such as missing Bank Verification Numbers (BVNs), account restrictions, and a lack of alternative bank accounts. The NDIC is actively striving to address these issues.

Hassan underlined the necessity of depositors following Know Your Customer (KYC) laws to enable timely compensation in the event of a bank shutdown.

After the Central Bank of Nigeria revoked Heritage Bank's license on June 3 due to ongoing financial instability and regulatory noncompliance, the NDIC successfully paid out 82.36% of insured deposits by August.

The CBN identified the bank's inability to achieve financial health criteria and regulatory procedures as the primary grounds for its collapse.

In response to the liquidation, the NDIC has been attempting to compensate depositors and creditors, including using BVNs to make payments to covered clients.