The Nigeria Deposit Insurance Corporation (NDIC) has initiated the nationwide sale of landed properties and chattels belonging to the defunct Heritage Bank, aiming to pay liquidation dividends to uninsured depositors.
The announcement was made by NDIC Managing Director and Chief Executive Officer, Bello Hassan, during the corporation’s special day at the 45th Kano International Trade Fair.
Hassan highlighted NDIC’s pivotal role in ensuring stability within Nigeria’s financial system. He emphasized that the corporation’s core mandate is to protect depositors when banks fail and to reimburse their funds promptly. He cited the recent revocation of Heritage Bank’s operating license on June 3, 2024, as an example of NDIC’s commitment to its responsibilities.
“In the wake of Heritage Bank’s closure, the NDIC commenced the payment of insured deposits up to N5 million per depositor within an unprecedented timeframe of just four days,” Hassan stated. “This achievement was made possible through the use of Bank Verification Numbers (BVNs) as unique identifiers, enabling the NDIC to locate alternate accounts for depositors in other banks. This eliminated the need for depositors to fill out forms or visit NDIC offices, streamlining the reimbursement process significantly.”
While a substantial number of depositors have been reimbursed their insured deposits, Hassan revealed that the corporation is actively working to ensure that those with balances exceeding the N5 million insurance limit are also paid. These uninsured deposits account for a significant share of the bank’s total deposits.
“Efforts are underway to realize the value of the defunct bank’s assets and recover debts to facilitate the payment of liquidation dividends to depositors with balances above the insured limit,” he explained. “The NDIC is equally committed to settling claims from creditors of the defunct bank once all depositors have been fully reimbursed. This orderly process is critical to maintaining public trust in the banking sector and ensuring financial stability.”
In line with this commitment, the NDIC officially began the sale of Heritage Bank’s landed properties and chattels on December 4, 2024. This nationwide process, conducted through competitive public auctions, is designed to adhere to public procurement guidelines, ensuring transparency, fairness, and accountability. The recovered values from these sales will contribute significantly to the payment of liquidation dividends for uninsured depositors.
Hassan urged all depositors of closed banks, including Heritage Bank, to come forward and claim their funds. “I encourage any depositor with genuine proof of ownership to visit NDIC with their BVN, verifiable means of identification, proof of account ownership, and details of an alternative account,” he said.
He also assured depositors that NDIC provides multiple channels for submitting claims, including their official website, email, and social media platforms, reinforcing the corporation’s dedication to safeguarding depositors’ funds.
This proactive approach, Hassan noted, is a testament to NDIC’s unwavering resolve to support affected depositors, uphold public confidence in the banking system, and maintain stability within the financial sector. The ongoing efforts reflect the corporation’s overarching mission to ensure that no depositor is left behind, even in the wake of a bank’s closure.
