Breaking News:** NDIC Disburses N5m Each to Former Heritage Bank Customers.

**Breaking News:** NDIC Disburses N5m Each to Former Heritage Bank Customers.

The Nigeria Deposit Insurance Corporation (NDIC) has distributed insured deposits of N5 million each to 82.36% of the customers of the now-defunct Heritage Bank.

However, 17.64% of the insured deposits are still pending, primarily belonging to account holders with Post-No Debit instructions or without a Bank Verification Number (BVN).

This information was revealed in a statement issued by Bashir Nuhu, the Director of Communication and Public Affairs, on Sunday in Abuja.

On June 3, 2024, the Central Bank of Nigeria (CBN) revoked the banking license of Heritage Bank Plc due to ongoing financial instability and regulatory violations.

The CBN explained that this action aligns with its mandate under Section 12 of the Banks and Other Financial Institutions Act 2020, which seeks to ensure a stable financial system in Nigeria.

Following the revocation of Heritage Bank’s license, the NDIC announced that it would begin payments to the 2.3 million depositors of the bank.

Providing an update in the Sunday statement, the director mentioned that disbursements to affected customers began just four days after the bank's liquidation.

He also noted that this achievement was made possible by using Bank Verification Numbers to identify depositors’ alternate accounts in other banks.

Part of the statement read, “In fulfilling its deposit guarantee mandate, the Corporation commenced payments of insured deposits up to a maximum of N5 million per depositor within a record time of four days after the bank's closure.

"This was accomplished using BVNs as unique identifiers to locate depositors’ alternate accounts in other banks, eliminating the need for depositors to visit NDIC offices or complete forms. This historic approach has led to the prompt reimbursement of approximately 82.36% of the total insured deposits to date.”

For depositors with balances exceeding N5 million, the director clarified that the remaining amounts (classified as uninsured deposits) would be paid as liquidation dividends once the defunct bank’s assets are realized and debts recovered.

He further added, “It is important to note that the remaining 17.64% of insured deposits yet to be paid are mostly held by depositors with Post-No Debit instructions or without BVNs, as well as those without alternative accounts in other banks or with accounts that have a KYC limit on the maximum lodgment per day and who have not yet come forward for verification.

"However, depositors with balances over N5 million have received the initial insured amount of N5 million, with the remaining balances to be paid as liquidation dividends after the recovery of the defunct bank's assets and debts.”