The Nigerian Deposit Insurance Corporation has assured depositors of Heritage Bank that theres no need for panic as it is already in the process of repaying depositors of the bank.

Bello Hassan, the Managing Director of NDIC disclosed this at a press briefing where he outlined the processes of repayment, insisting that the corporation will not take 30 days as stipulated by law but settle customers within one week.

Why CBN Revokes The Bank’s Operating License

The Central Bank of Nigeria (CBN) had announced that it has revoked the banking licence of Heritage Bank.

According to the Ag. Director, Corporate Communications, Mrs Hakama Sidi Ali, the revocation was done in accordance with its mandate to promote a sound financial system in Nigeria.

She said: “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.”

Ali added that this action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.

The apex bank added that 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.

Ali’s noted that this followed a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

She stressed: “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.

NDIC Appointed Liquidator Of Heritage Bank

“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

In a statement issued by the Director, Communication & Public Affairs, Bashir Nuhu, the Corporation revealed that the depositors of the bank that have alternate accounts within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number, BVN.

In the same vein, 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.

How Depositors Can Recover Thier Funds From Heritage Bank – NDIC Outline Processes

The statement added, “All depositors of the defunct bank without alternate bank account in the industry are advised to 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.”