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Heritage Bank Depositors to Receive Refunds Soon: NDIC Reveals

In a much-awaited announcement, the Nigerian Deposit Insurance Corporation (NDIC) has revealed that the refund process for depositors of Heritage Bank will commence within one week. Bello Hassan, the Managing Director of NDIC, shared this news during a briefing in Abuja earlier on Wednesday.

According to Hassan, the total bank deposits at Heritage Bank amount to an impressive N650 billion, while its loan portfolio stands at over N700 billion. The NDIC is committed to ensuring the repayment of these loans within the next six months, as stated by Hassan during the briefing.

“All depositors are currently being verified for the onward payment of their insured benefit of N5 million,” emphasized the MD of NDIC. He further explained that depositors with insured deposits exceeding N5 million will be paid upon the sale of the bank’s assets. The NDIC estimates that there are approximately 2.3 million depositors at Heritage Bank, with 99 percent of them having total balances below five million naira.

Heritage Bank operates through a network of 116 branches spread across the country, serving a wide range of customers. The assurance of payment from the NDIC comes as a glimmer of hope for these customers who have been anxiously awaiting news following the revocation of the bank’s license.

The Central Bank of Nigeria (CBN) took the decision to revoke Heritage Bank’s banking license earlier this week, citing its mandate to promote a sound financial system in Nigeria. This action was taken under the powers vested in the CBN by Section 12 of the Banks and Other Financial Act (BOFIA) 2020.

In a statement issued by the Acting Director of Corporate Communications at the CBN, Hakama Ali, it was revealed that the bank had breached Section 12(1) of the BOFIA, 2020. Ali highlighted that despite the CBN’s engagement with the bank and the prescribed supervisory steps, the board and management of Heritage Bank were unable to improve its financial performance, posing a threat to financial stability.

The revocation of the banking license was deemed a necessary step to strengthen public confidence in the banking system and safeguard the soundness of the financial system, as explained by the CBN. In accordance with Section 12(2) of the BOFIA, 2020, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of Heritage Bank.

As the refund process is set to begin, depositors can now look forward to reclaiming their funds and restoring some financial stability. The NDIC remains committed to ensuring a smooth and efficient refund process for all affected depositors of Heritage Bank.

This news brings a ray of hope to the customers who have been waiting eagerly for resolution amidst the uncertainty. The NDIC’s diligent efforts and the CBN’s decisive actions aim to protect the interests of depositors and maintain the integrity of the Nigerian banking system.

Efecha Gold
Efecha Gold
Multimedia Expert, Journalist, and Singer.


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