The Nigeria Deposit Insurance Corporation (NDIC) has initiated the sale of Heritage Bank’s assets following the revocation of its operating license in June 2024. The NDIC Managing Director and Chief Executive, Bello Hassan, made this announcement during the corporation’s special day at the 45th Kano International Trade Fair in Kano, northwest Nigeria.
Hassan highlighted the swift actions taken by the NDIC to protect depositors’ funds, stating that payments of up to ₦5 million per depositor began within four days of the bank’s closure. He attributed the speed of the reimbursement to the use of Bank Verification Numbers (BVN), which allowed the NDIC to identify and transfer funds to depositors’ alternate accounts without requiring additional paperwork or office visits.
“The NDIC leveraged BVNs as a unique identifier, ensuring depositors received their insured sums seamlessly,” Hassan said.
Hassan also reassured depositors with balances exceeding the insured limit of ₦5 million that efforts are underway to reimburse them through liquidation dividends. These payments will be sourced from the realization of Heritage Bank’s physical assets, investments, and recovered debts.
“The Corporation is committed to ensuring that depositors with amounts exceeding the insured limit are paid from the proceeds of the defunct bank’s assets,” Hassan emphasized. He also noted that creditors of the bank would be compensated after all depositors have received their funds.
Hassan underscored the NDIC’s mandate to protect depositors and maintain confidence in Nigeria’s banking system, reassuring the public that their funds are safe even in times of financial uncertainty.
“This process contributes significantly to the stability of the financial system,” he said, urging any remaining Heritage Bank depositors who have not received their payments to come forward with proof of account ownership.
Speaking at the event, the President of the Kano Chamber of Commerce, Industry, Mines, and Agriculture (KACCIMA), Garba Imam, represented by Alhaji Sani Sale, expressed support for the NDIC’s efforts. He emphasized KACCIMA’s commitment to enhancing market value and advancing Kano’s industrial sector on a global scale.
The NDIC’s actions reflect its ongoing efforts to ensure financial stability and protect the interests of depositors in Nigeria, even as the banking landscape evolves.