Heritage Bank: NDIC Goes After N700bn Loan Defaulters, Lists 2.3m Depositors

The Nigeria Deposit Insurance Corporation has announced that it will pay out insured deposits to depositors of the defunct Heritage Bank who have N5m or less in their accounts.

NDIC, who was appointed liquidator of the bank by the Central Bank of Nigeria said that it would ensure the payment is done within one week.

Managing Director of the NDIC, Bello Hassan, at a press conference held on Wednesday in Abuja, revealed that customers whose funds were N5m or less were 99 per cent of the 2.3 million depositors of the bank.

Hassan said, “Our primary objective is to protect depositors and maintain financial system stability. We will start by paying depositors the maximum insured amount of N5m, leveraging the Bank Verification Number facility.”

“Our focus is on depositors and creditors, with depositors taking priority. We will start by paying depositors the maximum insured amount of N5m. Depositors with alternate bank accounts can visit any NDIC branch for payment, while those without can use the NDIC website to claim their insured amount.”

He also noted that the NDIC would later focus on paying uninsured deposits and creditors, from proceeds of the liquidation of the bank’s assets

With about N650bn in deposits and N700bn in loans, the NDIC aims to recover as much as possible, empowered by the NDIC Act 2023. Hassan assured the public that the agency would leverage its powers to achieve this goal efficiently.

He also noted that the NDIC would later focus on paying uninsured deposits and creditors, from proceeds of the liquidation of the bank’s assets.

With about N650bn in deposits and N700bn in loans, the NDIC aims to recover as much as possible, empowered by the NDIC Act 2023. Hassan assured the public that the agency would leverage its powers to achieve this goal efficiently.

“After paying depositors, we will move on to creditors. Our preliminary assessment shows total deposits of around N650bn, with loans exceeding N700bn.

“We aim to recover these loans, empowered by the NDIC Act 2023, which provides a sufficient legal framework for debt recovery. We assure the public that we will leverage these powers to recover as much as possible, starting immediately,” he said.