NDIC goes after debtors of Heritage Bank, vows to pay uninsured depositors, cred

The Nigeria Deposit Insurance Corporation (NDIC) has taken action to recover debts and assets linked to the defunct Heritage Bank, a move aimed at settling outstanding claims, especially for depositors with balances exceeding the insured deposit limit of N5 million. This decision follows the Central Bank of Nigeria's revocation of Heritage Bank's operating license on June 3, 2024. The NDIC has already made substantial progress in reimbursing insured depositors, covering approximately 86% of the insured amount by utilizing Bank Verification Numbers (BVN) to ensure swift payment to alternate bank accounts.

However, the NDIC remains focused on addressing the claims of uninsured depositors, whose balances exceed the cap. To achieve this, the corporation has initiated processes to recover loans owed by Heritage Bank's debtors and liquidate its assets. This approach is designed to generate funds for compensating uninsured depositors, ensuring that all parties affected by the closure are paid in a structured manner. These efforts also extend to addressing the needs of creditors who will be paid after depositors, in accordance with the legal order of priority.

The NDIC's actions reflect its broader mandate to protect depositors and maintain financial stability in Nigeria's banking sector. By leveraging a combination of debt recovery, asset liquidation, and effective payment methodologies, the NDIC aims to fulfill its obligation to depositors and uphold public confidence in the country's financial system.

[attachment deleted by admin]