Heritage Bank: NDIC Begins Loan and Asset Recovery to Settle Uninsured Deposits

Nume Ekeghe

Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC) Bello Hassan has disclosed that the corporation has commenced asset recovery and loan retrieval efforts for the defunct Heritage Bank.
These actions are aimed at reimbursing depositors with balances exceeding the N5 million insured deposit cap and fulfilling other liabilities.
Hassan disclosed this at NDIC Special Day during the ongoing Lagos International Trade Fair in Lagos yesterday.

Represented by the Director of Corporate Communications and  Public Affairs, Nuhu Bashir, highlighted the corporation’s focus on recovering outstanding loans from Heritage Bank’s debtors.
Nuhu noted that the NDIC has initiated discussions with debtors, setting specific timelines for loan repayments to ensure timely compensation of uninsured depositors through liquidation dividends.
He noted that in the wake of the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank’s operating license on June 3, 2024, the NDIC acted swiftly, reimbursing insured depositors within four days.

The corporation utilised Bank Verification Numbers (BVN) as unique identifiers to process payments directly to alternate bank accounts, covering insured sums for approximately 86 percent of depositors coverage limit for Deposit Money Banks from N500,000 to N5 million.

He said: “While our immediate focus remains on insured deposits, the NDIC is also committed to ensuring that depositors with balances exceeding N5 million are compensated. In this regard, the Corporation has already initiated the process of realising the bank’s assets and recovery of debts owed to ensure the timely payment of the uninsured depositors by way of liquidation dividends.”

“Furthermore, the NDIC’s responsibilities extend to the creditors of the defunct bank, who will receive payments once all depositors have been reimbursed. This orderly process, based on asset realisation and prioritisation of claims, is essential in maintaining public confidence in the financial landscape.⁠ ⁠I encourage depositors of Heritage Bank, who are yet to receive their payments, to come forward with their BVN, proof of account ownership, identification, and alternative account details. Claims can be submitted through various channels, including our website, email, and social media platforms.”

He encouraged attendees affected by the Heritage Bank closure, or who have family impacted, to visit the NDIC pavilion at the trade fair, where staff are on hand to provide further information and address inquiries related to NDIC operations and deposit insurance.

He added: “Established three and half decades ago, the NDIC has been a key player in protecting depositors, especially the most vulnerable, and contributed to strengthening the financial system. Our core mandate includes providing deposit insurance to depositors of licensed banks, supervising insured financial institutions, distress resolution, and ensuring the orderly resolution of banks in the event of failure.

We remain committed to safeguarding Nigerian bank depositors from the devastating impact of bank failures. In collaboration with the Central Bank of Nigeria (CBN), we work tirelessly in ensuring the stability of the banking sector, maintain compliance to banking regulations and ensure effective oversight of insured deposit-taking financial institutions. Our tagline, ‘Protecting your bank deposits, encapsulates our mission to foster financial inclusion and stability by assuring Nigerians that their savings are secured.”