Banking

MD: NDIC’ll repay Heritage Bank customers in one week

The Nigeria Deposit Insurance Corporation (NDIC) says it will begin payment of the insured sum to 2.3 million depositors of Heritage Bank in-liquidation this week.

The NDIC Managing Director, Bello Hassan, made this known while briefing journalists in Abuja on Wednesday, June 5, 2024.

Hassan said the bank had preliminary deposits of N650 billion and loan worth N700 billion.

According to him, 99.9 per cent of depositors of the defunct bank have a deposit balance of less than N5 million, while only 4,000 of the depositors have more than N5 million deposit.

The Star recalls that the Central Bank of Nigeria (CBN) revoked the licence of Heritage Bank on Monday, June 3.

NDIC begins liquidation of Heritage Bank

The CBN said the revocation was 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.

The apex bank stated that Heritage Bank operations constituted a threat to financial stability.

It, therefore, appointed the NDIC as the liquidator of the bank under Section 12 (2) of BOFIA, 2020.

NDIC announced on Monday that it had started the liquidation process of Heritage Bank, which involved verification and payment of insured deposits to the bank depositors.

It noted that relevant laws necessitated immediate actions to safeguard depositors’ funds.

The Star

Segun Ojo

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