The Nigerian Deposit Insurance Corporation (NDIC) has announced that depositors at Heritage Bank will start receiving payments by the end of the week. This was revealed by NDIC’s Managing Director, Bello Hassan, during a briefing in Abuja regarding the bank’s liquidation.
Heritage Bank’s banking license was revoked by the Central Bank of Nigeria (CBN) on Monday, prompting the NDIC to begin the liquidation process. Hassan mentioned that the bank holds deposits amounting to N650 billion and has a loan portfolio exceeding N700 billion. The NDIC aims to ensure loan repayments are made within six months.
Depositors are currently undergoing verification to receive their insured benefits. Those with deposits up to N5 million will be paid first, while depositors with larger amounts will receive their funds once the bank’s assets are sold. Heritage Bank has about 2.3 million depositors, with 99% having balances below N5 million. The bank also operates 116 branches nationwide.
This move by the NDIC is expected to provide relief to customers of Heritage Bank, who have been concerned since the bank’s license was revoked. The CBN’s decision to revoke the license is part of its mandate to maintain a stable financial system in Nigeria. According to the CBN, Heritage Bank violated Section 12 of the Banks and Other Financial Act (BOFIA) 2020 and failed to improve its financial performance, posing a risk to financial stability.
The CBN had engaged with Heritage Bank and suggested various measures to address its decline, but the bank continued to struggle without any sign of recovery. As a result, the CBN appointed the NDIC as the liquidator to restore confidence in the banking system and protect its integrity.
