Depositors of the closed Heritage Bank with N5 million or less in their accounts will get covered money, according to a statement from the Nigeria Deposit Insurance Corporation.
The Central Bank of Nigeria named NDIC as the bank's liquidator, and NDIC promised to make sure the payment was made within a week.
At a news conference on Wednesday in Abuja, Bello Hassan, the Managing Director of the NDIC, disclosed that 99 percent of the bank's 2.3 million depositors had balances of N5 million or less.
"Maintaining the stability of the financial system and safeguarding depositors is our top priority," stated Hassan. First, we will pay depositors the full amount due N5 million in insurance, making use of the Bank Verification Number feature.
"Depositors and creditors are our main concerns, with depositors coming first. First, we will pay depositors the N5 million maximum guaranteed sum. While individuals without an alternative bank account can utilize the NDIC website to collect their protected amount, depositors with one can visit any NDIC branch to make payment.
He added that the NDIC would subsequently use the money received from the sale of the bank's assets to compensate creditors and uninsured deposits.
Enabled under the NDIC Act 2023, the NDIC seeks to collect as much as feasible, with roughly N650 billion in deposits and N700 billion in loans. Hassan gave the people confidence that the organization would use all of its resources to effectively accomplish this aim.
"After depositors are paid Next, we'll discuss creditors. According to our early estimate, there were about N650 billion in total deposits and more than N700 billion in loans.
"With the NDIC Act 2023, which offers an adequate legal framework for debt recovery, we hope to recover these loans. He declared, "We pledge to the people that we will use these authorities to retrieve as much as we can, beginning right now.
The CBN announced the revocation of Heritage Bank's license on Monday, citing a regulation violation, in a statement signed by Sidi Ali, the acting director of corporate communication.
"This action has become necessary due to the bank's breach of Section 12 (1) of BOFIA, 2020," stated the regulator. The bank's board and management have not been able to get better the bank's financial performance, a circumstance that puts the stability of the financial system in jeopardy.
This comes after a time when the CBN interacted with the bank and suggested a number of supervisory actions meant to stop the downturn. The bank has sadly not improved and appears unlikely to do so in the near future, so the next required step is to revoke the license.
On Wednesday, patrons of the dissolved Heritage Bank convened at the bank's Lagos headquarters to inquire about the process of obtaining their refunded deposits.
The News Agency of Nigeria said that security guards kept patrons from accessing the building.
An official speaking through the gate advised the consumers that savings account holders would start receiving payments today and would do so through Friday.
"You're not need to do anything at all. Payroll is already being processed by NDIC employees. The representative gave them the assurance, "Your money will be transferred to your other account linked with your BVN."
Corporate account holders, on the other hand, were told to return “next week,” which alarmed some because BVN is usually connected to individual accounts rather than businesses.
Customers turned down NAN interviews, keeping the mood solemn.
One consumer said, "Mine is an entrepreneurship account," that's all.
Security guards blocked a NAN correspondent's attempt to enter by citing the Central Bank of Nigeria's June 3 news release, which announced the bank's license cancellation, as the answer to any questions.
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