Victor Ezeja
The Nigeria Deposit Insurance Corporation (NDIC) said it has repaid 86.36 per cent of customers of the defunct Heritage Bank with the use of Bank Verification Number (BVN).
The Corporation said the use of BVN-linked alternate accounts of the customers facilitated prompt reimbursement of customers, who have deposits less than the N5 million maximum insured deposit.
Join our WhatsApp ChannelThis was made known in a statement released Saturday, 10th August, signed by Bashir Nuhu, Director, Communications and Public Affairs, NDIC.
Nuhu said the use of BVN made the repayment process seamless as nobody asked any customer to visit NDIC office and fill any form.
The Central Bank of Nigeria (CBN), had upon revocation of the operational license of Heritage Bank, directed the NDIC to liquidate the bank, and reimburse all customers’ deposits.
Prime Business Africa had reported that the NDIC said over 99 per cent of the 2.3 million depositors of defunct bank have N5 million and less in their accounts and will therefore be paid in full.
Nuhu said the Corporation began payment of the insured deposits of customers within four days of the bank’s closure.
“This was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks,” he said.
He explained that those with deposits above N5 million that was insured, received the initial N5 million and would receive their balance once debts owed the bank and assets are fully recovered.
The NDIC spokesperson further said that the Corporation has begun the process of recovery debts owed the defunct bank and realisation of its assets to raise funds and settle customers with deposits above the N5 million insured.
READ ALSO: Heritage Bank: What You Didn’t Know
He explained that the remaining 17.64 per cent of the insured deposits yet to be paid were largely depositors who have issues with their accounts such as post no debits (PND) instructions or have no BVN.
He added that “Others are those with no alternative accounts in other banks or accounts with KYC limit on the maximum lodgment per day and are yet to come forward for verification.
“These categories of depositors are presently being contacted by the Corporation through telephone calls and text messages to come forward for verification.”
READ ALSO: CBN Could’ve Saved Heritage Bank To Protect Depositors’ Funds – Economist
The NDIC spokesperson added that after the full payment of both insured and uninsured portion of deposits, the Corporation will proceed with the payment of creditors in accordance with priority of claim as stipulated in the extant law.
“We will like to reiterate that, all payments other than that of insured deposits, are subject to availability and realisation of assets of the bank in the form of liquidation dividend,” Nuhu added.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
