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December 13, 2024
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ECONOMY

NDIC Begins Liquidation of Heritage Bank’s Assets

The Nigeria Deposit Insurance Corporation (NDIC) has initiated the liquidation process for Heritage Bank Plc following the revocation of its banking license by the Central Bank of Nigeria (CBN) on June 3, 2024. This development comes after the CBN identified significant regulatory and financial issues that warranted such an intervention to protect depositors and maintain the integrity of the banking sector.JUST-IN: NDIC Begins Liquidation Of Heritage Bank After CBN's Revocation Of  Operational License – The Whistler Newspaper

The NDIC, which has been appointed as the liquidator, is now tasked with overseeing the orderly winding down of Heritage Bank’s operations. This includes the immediate verification and payment of insured deposits to the bank’s customers. Depositors with alternate accounts within the banking industry will receive up to the insured amount of N5 million per depositor through their Bank Verification Number (BVN). For those with deposits exceeding N5 million, additional payments will be made from the liquidation proceeds as the bank’s assets are sold and debts recovered.

For depositors without an alternate bank account, the NDIC has provided clear instructions. These individuals are advised to visit the nearest Heritage Bank branch with proof of account ownership, a verifiable means of identification such as a driver’s license, permanent voter’s card, or National Identity Card, along with their BVN and details of an alternate account. Alternatively, depositors can file claims online through the NDIC’s website by downloading and submitting the necessary forms and documentation.

Concerns As NDIC Announces N5m Compensation for Heritage Bank Nigeria  Depositors, Following License Revocation - Tekedia

Creditors of Heritage Bank are also urged to file their claims either in person at the nearest branch or via the NDIC’s online platform. The payment process for creditors will commence once all depositors have been paid. Meanwhile, debtors are instructed to contact the NDIC’s Asset Management Department to arrange the repayment of outstanding loans.

The NDIC has emphasized its commitment to ensuring the safety of depositors’ funds in all licensed banks and reassured the public that banks with valid licenses remain secure. This intervention aims to maintain public confidence in the banking sector and uphold the stability of the financial system.

The liquidation of Heritage Bank marks a significant step in addressing the financial instability within the institution and highlights the regulatory mechanisms in place to protect the interests of depositors and the wider banking community in Nigeria.

 

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