Breaking: NDIC to pay Heritage Bank depositors this week
Account owners at Heritage Bank (in liquidation) will be paid their insured deposits as soon as this week.
Mr. Bello Hassan, the Managing Director (MD) of the Nigeria Deposit Insurance Corporation (NDIC), disclosed this at an ongoing press conference, in Abuja.
He announced that over 99 per cent of the 2.3 million depositors have N5 million or less in their accounts and will be paid in full. He added that only about 4000 depositors have above N5 million in their accounts.
Recall that the Central Bank of Nigeria recently terminated the operating licence of Heritage Bank with immediate effect.
The apex bank clarified that the reason for the termination was due to the failure of the Board and Management of Heritage Bank to improve its financial performance, a situation which constitutes a threat to financial stability.
The statement reads, “The Central Bank of Nigeria (CBN), in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.
“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The Board and management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability. This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.
“Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.
“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.”
