In the wake of the Central Bank of Nigeria (CBN) revoking Heritage Bank's operating license, the Nigeria Deposit Insurance Corporation (NDIC) has announced measures to ensure depositors receive their funds.

The NDIC assured depositors they would be compensated up to N5 million using their Bank Verification Number (BVN) to identify alternate accounts within the banking system. Bashir Nuhu, the NDIC’s spokesperson, stated on Monday that depositors with alternate bank accounts will receive payments up to the insured amount of N5 million. The BVN system will facilitate a smooth and efficient transfer of funds, aiming to protect depositors and maintain confidence in the banking sector.

“We are fully prepared to step in and ensure that depositors are protected. Our immediate priority is to guarantee that depositors have access to their insured funds with minimal disruption,” the NDIC said.

For those with funds exceeding N5 million, payment will be made through liquidation dividends once the bank's assets are realised and debts are recovered. The NDIC also emphasized that depositors' funds are secure, and robust mechanisms are in place to manage the transition.

The NDIC will oversee the resolution of Heritage Bank, including verifying and paying insured deposits, and managing the bank’s assets and liabilities to maximize recovery and minimize losses to the financial system.

Depositors without alternate bank accounts will need to visit the nearest Heritage Bank branch with proof of account ownership, a verifiable identity card (driver’s license, permanent voter’s card, or National Identity Card), alternate account details, and BVN for verification and payment of the insured sum.

Alternatively, affected customers can file a claim online via the NDIC website, by downloading and filling out the claims form, and uploading the required documents. Creditors should visit the nearest Heritage Bank branch or use the online platform to file their claims. The payment process for creditors will commence after all depositors have been compensated. Debtors are advised to contact the NDIC’s Asset Management Department (AMD) to complete their loan repayments.

Earlier, PREMIUM TIMES reported that Heritage Bank customers faced difficulties accessing their funds despite the bank notifying customers of a "system refresh exercise" on May 13. Despite the bank's claims that the exercise had concluded, many customers remained stranded at various branches as of Monday.

Consequently, the CBN revoked Heritage Bank's license on Monday, appointing the NDIC as the bank's liquidator per Section 12 (2) of the Banks and Other Financial Institutions Act (BOFIA) 2020. The CBN's decision aligns with its mandate to promote a stable financial system in Nigeria and follows a period of engagement with the bank aimed at improving its financial performance.

“The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability. This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the license the next necessary step,” the CBN stated.