Close Menu

    Subscribe to Updates

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

    What's Hot

    Why Peter Obi Should Be ADCโ€™s Presidential Candidate โ€“ Datti

    July 4, 2025

    ADC: Coalition Leaders Are Gangs Of Failed And Expired Politicians โ€“ Wike

    July 4, 2025

    Sanwo-Olu Mourns As Super Eagles Legend, Peter Rufai Dies At 61

    July 3, 2025
    Facebook X (Twitter) Instagram
    Trending
    • Why Peter Obi Should Be ADCโ€™s Presidential Candidate โ€“ Datti
    • ADC: Coalition Leaders Are Gangs Of Failed And Expired Politicians โ€“ Wike
    • Sanwo-Olu Mourns As Super Eagles Legend, Peter Rufai Dies At 61
    • Donโ€™t Be Deceived By ADCโ€™s Antics, Presidency Tells Nigerians
    • We Are Devastated By Diogo Jotaโ€™s Death โ€“ Liverpool FC Mourns
    • Liverpool Star, Diogo Jota Dies In Car Crash
    • Microsoft Sacks 9,000 Workers In Bid To Reduce Costs
    • Ex-AGF Abubakar Malami Resigns From APC, Joins ADC
    Facebook X (Twitter) Instagram
    TheScrutinyNG
    Subscribe
    Friday, July 4
    • Home
    • Politics
    • Business
    • News
      • World News
    • Sports
    • Interviews
    • Opinion
    • Entertainment
    • Columnists
    • ABOUT US
    TheScrutinyNG
    Home ยป Heritage Bank Depositors Under N5 Million To Receive Payout
    4 Mins Read181 ViewsJune 4, 2024

    Heritage Bank Depositors Under N5 Million To Receive Payout

    By Festus AdeloyeJune 4, 2024No Comments181 Views4 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Payment to depositors with liquidated Heritage Bank having N5 million and below will begin on Monday, the Nigeria Deposit Insurance Corporation (NDIC) said yesterday.

    Depositors with more than N5 million will wait for their balance until assets of the liquidated bank are disposed off and money generated, before they are paid.
    The Central Bank of  Nigeria (CBN) yesterday revoked the operating licence of Heritage Bank.

    According to the apex bank, Heritage failed in its obligations.

    A statement by CBN spokesperson Hakama Sidi-Ali said: โ€œThe bankโ€™s Board and Management failed to improve its financial performance, posing a risk to the financial stability of the country. Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recoveryโ€.

    NDIC Director of Communication and Public Affairs Bashir Nuhu, confirmed that payments to depositors will begin on Monday.

    Nuhu said Heritage Bank customers with alternate accounts in other banks will be paid up to the insured amount of N5 million per depositor.

    Payments will be facilitated using the depositorsโ€™ Bank Verification Numbers (BVN) to identify their alternate accounts. Those with deposits exceeding N5 million will receive additional payments, known as liquidation dividends, after the bankโ€™s assets are sold and debts are recovered.

    To facilitate this process, the NDIC and the Central Bank of Nigeria (CBN) are working this week to identify depositors with alternate bank accounts, ensuring they receive their funds promptly starting on Monday.

    Nuhu emphasized that depositors with verified BVNs and alternate bank accounts do not need to visit their banks or the NDIC to receive their payments.

    For depositors without alternate bank accounts, Nuhu advised them to visit the nearest branch of Heritage Bank with proof of account ownership, a verifiable means of identification (such as a driverโ€™s license, permanent voter card, or National Identity Card), and their BVN.

    They can also file their claims online by visiting the NDIC website, downloading the claims form, and upload the required documents.

    Creditors of Heritage Bank are also advised to visit the nearest bank branch or use the online platform to file their claims. Payments to creditors will begin immediately after all depositors have been paid.

    Debtors of Heritage Bank who have not yet completed their loan repayments have been instructed to contact the NDICโ€™s Asset Management Department (AMD) and visit the NDIC website to fill out the required documents. Assets recovered from these debtors will be used to pay depositors and creditors of Heritage Bank.

    The NDIC reassured the banking public of its commitment to protecting depositorsโ€™ funds in all licensed banks. Depositors are encouraged to continue their banking activities without fear, as banks with valid licenses remain safe and sound.

    Last month, the NDIC announced an increase in deposit coverage from N500,000 to N5,000,000, now fully covering 98.98 percent of depositors.

    NDICโ€™s Managing Director Bello Hassan stated that the corporation collects premiums annually to fund the deposit insurance system, maintaining over N2 trillion in these funds.

    This increase in insured deposit coverage was as a result of factors such as inflation, exchange rates, and per capita GDP. Ensuring swift payment to depositors, often within seven days has become a global best practice.

    Hassan clarified that the increase in coverage will not necessarily lead to higher premiums for banks. The NDIC has moved to a risk-based premium framework, where banks managing risks effectively will pay the base rate of 35 basis points, while those with higher risk profiles could face premiums up to 65 basis points.
    The NDICโ€™s actions is meant to ensure the stability and confidence in Nigeriaโ€™s banking system, providing a safety net for depositors and maintaining public trust in the financial sector.

    Reps to engage CBN, NDIC, stakeholders

    The House of Representatives committee will look into the liquidation of Heritage Bank by the CBN to provide necessary support to mitigate any potential negative impact on the public.

    Spokesman  of the House, Akintunde Rotimi said in a statement that โ€œthe House of Representatives is aware of the revocation of the licence of Heritage Bank (under liquidation) by the CBN and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidators, in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA).

    โ€œWe assure the public, particularly depositors and stakeholders of Heritage Bank, that the House is committed to carrying out its constitutional oversight functions to ensure that this development does not negatively impact Nigerians.

    โ€œThe relevant House Committees on Banking Regulations; and Insurance will be up to their duty, thoroughly examining the circumstances surrounding this decision and the subsequent steps taken by the NDIC.โ€

    Author

    • Festus Adeloye
      Festus Adeloye

      View all posts
    Heritage Bank NDIC
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Festus Adeloye

    Related Posts

    Banking & Finance

    FirstBank Launches Advanced Facial Recognition On Mobile App

    June 30, 2025
    Breaking News

    Tinubu Signs Four Landmark Tax Reform Bills Into Law

    June 26, 2025
    Breaking News

    Multichoice Slashes DStv Decoder Price By 50 Percent

    June 25, 2025
    Aviation

    FCCPC Invites Air Peace Over Failure To Refund Fares For Canceled Flights

    June 16, 2025
    Business

    May & Baker Posts N28.9bn Revenue, N1.6bn PAT

    June 6, 2025
    Banking & Finance

    Access ARM Pensions Posts N28.2bn Revenue

    June 2, 2025

    Subscribe to News

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

    Editor's Picks

    Why Peter Obi Should Be ADCโ€™s Presidential Candidate โ€“ Datti

    July 4, 2025

    ADC: Coalition Leaders Are Gangs Of Failed And Expired Politicians โ€“ Wike

    July 4, 2025

    Sanwo-Olu Mourns As Super Eagles Legend, Peter Rufai Dies At 61

    July 3, 2025

    Donโ€™t Be Deceived By ADCโ€™s Antics, Presidency Tells Nigerians

    July 3, 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.

    ยฉ 2025 The Scrutiny. Designed by Design Streams.

    • Privacy Policy
    • Terms
    • Accessibility

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