The Nigeria Deposit Insurance Corporation (NDIC) has announced the commencement of the sale of landed property and chattels belonging to the defunct Heritage Bank across the country.
The Managing Director and Chief Executive of the NDIC, Bello Hassan, disclosed this during the corporation’s special day at the 45th Kano International Trade Fair on Wednesday, December 4.
He stated that the auction process aligns with the Central Bank of Nigeria’s directive to ensure the payment of liquidation dividends to uninsured depositors of Heritage Bank.
Hassan reiterated the NDIC’s commitment to protecting depositors when banks fail and ensuring the prompt reimbursement of their deposits.
Speaking on Heritage Bank, Hassan noted that the NDIC leveraged customers’ BVNs to facilitate payments without requiring depositors to fill out forms or visit its offices.
He said: “Over the years, the NDIC has played a pivotal role in promoting financial stability by ensuring that when banks fail, depositors are protected, and their funds are reimbursed promptly.
“Recent lessons from the revocation of Heritage Bank’s operating license on June 3, 2024, and the ongoing reimbursement of its depositors reinforce this critical role.
“The corporation began the payment of insured deposits of up to ₦5 million per depositor within a record time of four days after the bank’s closure. This was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks, eliminating the need for form-filling or visits to NDIC offices.”
Hassan added that the corporation is now focused on reimbursing depositors with balances exceeding the ₦5 million insured limit.
“These uninsured deposits represent a significant portion of the total deposits in Heritage Bank. To address this, the NDIC is actively working to ensure that depositors with amounts exceeding the maximum insured limit of ₦5 million are paid through liquidation dividends from the realization of the defunct bank’s assets and debt recovery.”
He further revealed that the NDIC has initiated the recovery of debts and the realization of investments and physical assets of the defunct bank to ensure timely payment to uninsured depositors.
Announcing the nationwide auction of Heritage Bank’s properties, which commenced on Wednesday, Hassan assured the public of a transparent and competitive process.
“This process, conducted via competitive public auction, adheres to extant public procurement guidelines to ensure transparency, fair competition, and accountability. The funds realized will contribute towards the payment of liquidation dividends to uninsured depositors.
“Additionally, NDIC’s responsibilities extend to creditors of the defunct bank, who will receive payments once all depositors have been fully reimbursed. This orderly process, based on asset realization and priority of claims, is vital for maintaining public trust in the banking system and promoting financial system stability.”
Hassan also encouraged depositors of Heritage Bank and other closed banks to come forward with valid documentation to claim their funds.
“I encourage depositors of any closed bank, especially Heritage Bank, who are yet to receive their payments, to come forward with their BVN, proof of account ownership, verifiable means of identification, and alternative account details.
“Depositors can submit their claims through our various channels, including our website, email, and social media platforms. We remain committed to ensuring the safety of depositors’ funds,” he concluded.
