By Stanley Onyeka, Lagos
The Nigeria Deposit Insurance Corporation (NDIC), yesterday, said it has commenced the liquidation of Heritage Bank.
This followed the immediate revocation of the bank’s operating licence by the Central Bank of Nigeria (CBN).
The NDDC also promised to pay depositors of the failed bank N5 million insured deposits, according to a statement by the Director of Communication & Public Affairs, Bashir Nuhu.
The statement reads further: “Following the revocation of the banking license of Heritage Bank Plc by the Central Bank of Nigeria (CBN) today, June 3, 2024 and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator, pursuant to Section 12(2) of BOFIA, 2020, the Corporation wishes to announce to depositors of the bank in particular and the banking public in general, as follows:
- “The NDIC has commenced the liquidation of Heritage Bank Plc:
In accordance with Section 55 sub-section 1 & 2 of the NDIC Act 2023, the Corporation has commenced liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank depositors.
“Depositors of the bank that have alternate account within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account. While depositors with funds in excess of N5 million will be paid liquidation dividend upon realization of the bank’s assets and recovery of debts owed to the bank.
- “Verification and Payment of Depositors Without Alternate Bank Account:
All depositors of the defunct bank without alternate bank account in the industry are advised as follows:
“Visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s license, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums or file online claim by visiting the NDIC website claims page on www.ndic.gov.ng/claims/claims, download and fill the claims forms and upload the required documentation.
- “Verification and Payment of Creditors:
Creditors are also advised to visit the nearest branch of the bank to file their claims or via the online platform. Please note that the process of payment of creditors will commence immediately after all depositors have been paid.
- “Debtors’ Repayment of Loans:
Debtors that are yet to complete the repayment of loans are advised to contact the Corporation’s Asset Management Department (AMD). Visit the NDIC website for more details.
“The NDIC wishes to assure the entire banking public of its commitment to the continued safety of depositors’ funds in all licensed banks. As such, depositors are urged to continue their banking businesses without fear as banks whose licenses have not been revoked remain safe and sound.”
The Corporation has commenced liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank depositors.
Safety of depositors’ funds
Meanwhile the House of Representatives also assured of the safety of depositors’ funds Heritage Bank, while urging stakeholders to remain calm.
The House also urged the CBN and NDIC to establish clear channels of communication to allay the fears of the public and prevent any loss of trust in Nigeria’s financial system.
It noted that effective public engagement is crucial to maintaining confidence at this point in time, according to a statement by the House spokesperson, Akin Rotimi.
It said the House priority is to safeguard the interest of all depositors and maintain the stability of the financial system.
The statement reads further: “The House of Representatives is aware of the recent revocation of the license of Heritage Bank (under liquidation) by the Central Bank of Nigeria (CBN) and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidators, in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA).
“We assure the public, particularly depositors and stakeholders of Heritage Bank, that the House is committed to carrying out its constitutional oversight functions to ensure that this development does not negatively impact Nigerians.
“The relevant House Committees on Banking Regulations; and Insurance will be up to their duty, thoroughly examining the circumstances surrounding this decision and the subsequent steps taken by the NDIC.
“We will engage with the CBN, NDIC, and other relevant stakeholders to ensure a transparent and orderly resolution process, providing necessary support to mitigate any potential negative impact on the public.
“Chairman of the House Committee on Banking Regulations, Rep. Mohammed Bello El-Rufai, stated, “The Committee on Banking Regulations will closely monitor the liquidation process to ensure that the rights of depositors are protected and that the process adheres to the highest standards of transparency and accountability.”
“Similarly, the Chairman of the House Committee on Insurance and Actuarial Matters, Rep. Ahmed Usman Jaha, emphasised.
“We will work diligently to oversee that the NDIC executes its mandate effectively, ensuring the protection of depositors’ funds and maintaining confidence in the financial sector.
The NDIC Act and the Banks and Other Financial Institutions Act (BOFIA) are clear in their provisions that depositors’ funds are insured and protected,” he added.
