By Muhammad Danjuma
@ Katsina times
Following the revocation of the operating license of Heritage Bank, the Nigeria Deposit Insurance Corporation (NDIC) has assured depositors, shareholders and creditors of the failed bank of full repayment.
A statement signed by the Head of Communications and Public Affairs of the corporation, Hajiya Hawwau Gambo, notes that already some depositors have been repaid their deposits.
It explains that significant progress has been made in reimbursing the
insured deposits of N5 million maximum per depositor while efforts are on to reimburse depositors with above N5 million deposits.
"Following the revocation of Heritage Bank's banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act, 2020, and Section 55(1 & 2) of the NDIC Act 2023.
"In line with its statutory mandate, the Corporation immediately commenced the bank's liquidation process, including the verification and payment of insured deposits to all depositors.
"Significant progress has been made in reimbursing the insured deposits of the N5 million maximum per depositor".
The statement clarified that depositors that are yet to receive their insured deposits include those without Bank Verification Number (BVN) or alternate accounts in other banks to enable the retrieval of their accounts from the database of the Nigeria Inter-Bank Settlement System.
"Other depositors in this category are those with post No Debit (PND) restrictions on their accounts.
"Some accounts have Know Your Customer (KYC) limitations such as Tier 1 accounts that places restrictions on the maximum lodgment of funds, while others have name mismatches that require resolution", the statement said.
It explains that there is anowr category of depositors that have been paid but are unaware of the payment due to lack of mobile phone transaction alerts on their alternate accounts into which the insured sums were paid by the NDIC.
The statement advised depositors to check their alternative bank accounts, as some payments may have been processed without notification to the account holders.
As regards depositors with deposits above N5 million, the statement notes that "NDIC has made substantial progress in disposing the physical assets and recovering some of the debts of the failed bank to ensure that" they get reimbursed.
"As a clear demonstration of this commitment, the Corporation commenced the realization of physical assets and investments as well as aggressive recovery of the risk assets, concurrently with the verification and payment of insured sums.
"To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, and major national newspapers, as well as through radio and television
announcements.
"The Corporations approach of simultaneously paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without delays".
The corporation said due to the progress made in the asset realization, it will declare the first tranche of liquidation dividend by April 2025 which will be paid to uninsured depositors on proportional basis in line with the NDIC Act, 2023.
It said other claimants of the failed Heritage Bank, including creditors, and shareholders, will be considered for payment of liquidation dividends only after all depositors have been fully reimbursed.
The NDIC urging other customers of licensed banks to continue their banking activities without fear, as all other banks remain safe for deposits and other forms of financial transaction.
