Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Zamfara Government Denies Persecuting Woman Who Converted To Christianity

    May 21, 2025

    NCoS Offers N5m Reward For Information On Escaped Inmates

    May 21, 2025

    2025 UTME: JAMB Didn’t Conspire Against Any Region – Oloyede

    May 21, 2025
    Facebook X (Twitter) Instagram
    Trending
    • Zamfara Government Denies Persecuting Woman Who Converted To Christianity
    • NCoS Offers N5m Reward For Information On Escaped Inmates
    • 2025 UTME: JAMB Didn’t Conspire Against Any Region – Oloyede
    • Oyo Government To Probe Police Officer Who Shot Student Dead
    • EFCC Hands Over Emefiele’s 750-Unit Luxury Houses To FG
    • OGUN 2024: NSC Disqualifies Six Athletes For Failing Anti-Doping Tests
    • CBN Retains Interest Rate At 27.50 Percent
    • Security Challenges: Zulum’s Irresponsible Prayer!
    Facebook X (Twitter) Instagram
    TheScrutinyNG
    Subscribe
    Wednesday, May 21
    • Home
    • Politics
    • Business
    • News
      • World News
    • Sports
    • Interviews
    • Opinion
    • Entertainment
    • Columnists
    • ABOUT US
    TheScrutinyNG
    Home » Defunct Heritage Bank Depositors Reject Partial Payment Offer By NDIC
    4 Mins ReadApril 7, 2025

    Defunct Heritage Bank Depositors Reject Partial Payment Offer By NDIC

    By Amina MohammedApril 7, 2025No Comments4 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Defunct Heritage Bank’s depositors with N5 million minimum balance have described as unacceptable the announcement by the Nigerian Deposit Insurance Corporation (NDIC) that they will receive only partial payment of the uninsured sums.

    They stated this at the weekend while reacting to the statement by the NDIC on their initial outcry to the National Assembly to prevail on the Central Bank of Nigeria (CBN) to ensure their trapped funds were released without further delays.

    The depositors, who had lamented the sufferings they and their loved ones were going through as a result of their inability to access their funds deposited in the defunct Heritage Bank, noted that the NDIC’s statement of March 30 that it would pay those in the category on pro-rata basis further confirmed their fears of lack of resources and underscored the urgency of the situation.

    Speaking through their leader, Ibrahim Elisha, the aggrieved depositors emphasised that the NDIC’s pro-rata payment scheme was inadequate and exposed severe funding deficiencies that could threaten public confidence in Nigeria’s banking system.

    “The dire financial predicament facing us demands swift, decisive intervention from the Presidency, National Assembly, and the CBN.

    “The NDIC has demonstrated its inability to fully reimburse affected depositors, even after liquidating the bank’s assets. A recent press statement—clearly issued in response to mounting media scrutiny—has confirmed that depositors will receive only partial payments, an unacceptable outcome that underscores the urgency of the situation.

    “The NDIC’s pro-rata payment scheme is inadequate, exposing severe funding deficiencies that threaten public confidence in Nigeria’s banking system. For nine months, depositors have endured broken promises, uncertainty, and financial hardship.

    “In times of distress, the CBN has historically provided bailout funds to stabilise financial institutions and prevent systemic collapse. It has done so in notable cases, including a N460 billion allocation to First Bank for Heritage Bank prior to its liquidation; support for the merger between Providus Bank and Unity Bank to preserve financial stability; a N700 billion lifeline extended to Unity Bank with favorable repayment terms; and the acquisition of Keystone Bank’s shares to avert institutional failure.”

    They argued that it was incomprehensible that the CBN would neglect urgent intervention in their matter.

    “Its inaction jeopardizes the entire financial ecosystem, creating unnecessary hardship for depositors who entrusted their savings to a bank that was assured to be stable.

    “Delays are unacceptable. The credibility of Nigeria’s financial sector is on the line. If immediate bailout funds are not provided, public trust in financial institutions will erode, investor confidence will falter, and global banking observers will question Nigeria’s commitment to economic stability,” they stressed.

    The depositors urged President Bola Tinubu and the National Assembly to mandate the CBN to release the necessary funds to NDIC for full depositor reimbursement.

    They insisted: “Time is of the essence. Prolonged hesitation will intensify the crisis and inflict irreversible reputational damage. The government must step in without delay to restore trust, and protect vulnerable depositors. The consequences of inaction are far too grave. Immediate action is non-negotiable.”

    In a statement by its acting Head of Communications and Public Affairs, Hawwau Gambo, NDIC explained that the excess of the insured N5 million already reimbursed would be paid as liquidation dividends in accordance with statutory mandate.

    The statement reads: “With the considerable progress recorded in the asset realisation, the corporation will declare the first tranche of liquidation dividends in April 2025 which will be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023 on the priority of claims.

    “For clarity, the referenced section states that: ‘Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution’.

    “Consequently, other claimants of the failed bank, including creditors, and shareholders, will be considered for payment of liquidation dividends only after all depositors have been fully reimbursed.

    “The NDIC wishes to reiterate its commitment to the safety of depositors’ funds in all licensed banks. Members of the public are enjoined to continue their banking activities without fear, as all other banks remain safe and sound.”

    Author

    • Amina Mohammed
      Amina Mohammed

      View all posts
    NDIC
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Amina Mohammed

    Related Posts

    Crime

    Zamfara Government Denies Persecuting Woman Who Converted To Christianity

    May 21, 2025
    Crime

    NCoS Offers N5m Reward For Information On Escaped Inmates

    May 21, 2025
    Breaking News

    2025 UTME: JAMB Didn’t Conspire Against Any Region – Oloyede

    May 21, 2025
    Crime

    Oyo Government To Probe Police Officer Who Shot Student Dead

    May 21, 2025
    Crime

    EFCC Hands Over Emefiele’s 750-Unit Luxury Houses To FG

    May 20, 2025
    Featured

    OGUN 2024: NSC Disqualifies Six Athletes For Failing Anti-Doping Tests

    May 20, 2025

    Subscribe to News

    Get the latest sports news from NewsSite about world, sports and politics.

    Editor's Picks

    Zamfara Government Denies Persecuting Woman Who Converted To Christianity

    May 21, 2025

    NCoS Offers N5m Reward For Information On Escaped Inmates

    May 21, 2025

    2025 UTME: JAMB Didn’t Conspire Against Any Region – Oloyede

    May 21, 2025

    Oyo Government To Probe Police Officer Who Shot Student Dead

    May 21, 2025
    Latest Posts
    Advertisement
    Facebook X (Twitter) Pinterest Vimeo WhatsApp TikTok Instagram

    News

    • World
    • US Politics
    • EU Politics
    • Business
    • Opinions
    • Connections
    • Science

    Company

    • Information
    • Advertising
    • Classified Ads
    • Contact Info
    • Do Not Sell Data
    • GDPR Policy
    • Media Kits

    Services

    • Subscriptions
    • Customer Support
    • Bulk Packages
    • Newsletters
    • Sponsored News
    • Work With Us

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    © 2025 The Scrutiny. Designed by Design Streams.

    • Privacy Policy
    • Terms
    • Accessibility

    Type above and press Enter to search. Press Esc to cancel.