NDIC Takes Over Heritage Bank: Will Depositors Get Their Money Back?

NDIC Takes Over Heritage Bank: Will Depositors Get Their Money Back?

Heritage Bank: NDIC begins refund, highest depositors to get N5m

The Nigerian Deposit Insurance Commission (NDIC) has commenced the liquidation process of failed Heritage Bank, with verification and payment of the bank’s depositors.

The NDIC was appointed as the liquidator of the bank by the Central Bank of Nigeria (CBN), which announced the revocation of the bank’s license due to its breach of Section 12 (1) of BOFIA, 2020, and its inability to improve its financial performance.

Depositors with less than N5m will be paid in full, while those with over N5m will receive liquidation dividends after the recovery of debts owed to the bank. The NDIC will verify and pay depositors with alternate bank accounts, and those without can file claims online or at the nearest branch.

The Bank Customers Association of Nigeria supports the CBN’s decision, citing the need to maintain financial system stability. The association’s President, Dr. Uju Ogubunka, stated that the CBN’s action was necessary to prevent the bank’s collapse from affecting the entire financial system.

Professor of Capital Market, Uche Uwaleke, also supported the CBN’s decision, saying it was in the overall interest of financial system stability.

The House of Representatives has pledged to ensure depositors’ funds are safe and the financial system stable, and will engage with relevant stakeholders to ensure a transparent and orderly resolution process.

The NDIC has assured the public of its commitment to the continued safety of depositors’ funds in all licensed banks, and urged depositors to continue their banking businesses without fear.