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The Nigerian Deposit Insurance Corporation (NDIC) has announced that depositors in Heritage Bank will start receiving their payments within a week.
During a briefing in Abuja on Wednesday, the Managing Director of NDIC, Bello Hassan, revealed that the total bank deposits at Heritage Bank amounted to N650bn, with a loan portfolio of over N700bn.
According to Channelstv, Hassan also mentioned that the NDIC aims to facilitate the repayment of loans within the next six months.
He stated that all depositors are currently undergoing verification for the payment of insured benefits of N5 million.
Depositors with insured deposits exceeding N5 million will be paid after the bank's assets are sold.
The NDIC reported a total of 2.3 million depositors at the bank, with 99 percent of them having balances less than five million naira. Heritage Bank has approximately 116 branches nationwide.
The NDIC's guarantee of payment will provide reassurance to Heritage Bank customers who have been preparing for the bank's licence revocation.
The Central Bank of Nigeria (CBN) revoked Heritage Bank's banking licence on Monday in accordance with its mandate to uphold a stable financial system in Nigeria.
The CBN cited its authority under Section 12 of the Banks and Other Financial Act (BOFIA) 2020 for this decision.
According to the Ag. Director, Corporate Communications of the CBN, Hakama Ali, the bank violated Section 12 (1) of BOFIA, 2020 and failed to improve its financial performance, posing a threat to financial stability.
Despite the CBN's efforts to help the bank recover, it continued to struggle, leading to the necessary revocation of its licence.
The CBN emphasized that this action was taken to maintain public trust in the banking system and safeguard the overall soundness of the financial sector.
The CBN subsequently designated the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.
