The Nigeria Deposit Insurance Corporation says it would begin the payment of the first tranche of liquidation dividends to depositors of Heritage Bank from April.

The Central Bank of Nigeria revoked Heritage Bank’s operating licence on June 3, 2024.

NDIC managing director Bello Hassan said this Wednesday at the NDIC Special Day at the ongoing 36th Enugu International Trade.

Mr Hassan said NDIC was collaborating with the CBN to maintain stability in the banking sector, enforce compliance with banking regulations and exercise effective oversight over insured deposit-taking institutions.

According to him, NDIC has commenced preparations to pay the first tranche of liquidation dividends this April.

“I wish to reassure all depositors that the NDIC has the financial and operational capacity to fully reimburse all depositors as recoveries are made,” he said.

Mr Hassan said the approach of paying insured deposits while concurrently realising assets and recovering loans ensured that no depositor was left behind.

“Our record in bank liquidation is reassuring. NDIC has successfully declared fully liquidation dividends to depositors of 20 previously failed banks. This reflects our unwavering commitment to depositor protection and our proven capacity to manage bank failures effectively.

“Therefore, I urge depositors of closed banks, particularly Heritage Bank, who have not yet received their payments, to come forward and provide necessary documentation supporting ownership of the account,” Mr Hassan explained.

He said these included the Bank Verification Number and alternate bank account number to pay the insured sum.

“Claims can be submitted through our website, email, social media platforms, or by visiting any of our zonal offices,” he said.

He also mentioned that the NDIC had consistently played a crucial role in maintaining financial stability by ensuring depositors received prompt compensation when banks failed.

“A recent example is the revocation of Heritage Bank’s operating license by the CBN. In line with its statutory mandate, the corporation immediately began liquidation process, including verification and payment of insured deposits of up to a maximum of N5 million per depositor within four days.

“This swift action has enabled the payment of insured amounts to the majority of the bank’s depositors using their BVN as a unique identifier to locate their alternate accounts for payment. Those yet to be paid are largely depositors without BVNs or alternate accounts in other banks or those with Post-No-Debit (PND) restrictions.

“Some accounts also have KYC issues, such as Tier 1 limits or name mismatches, while a few depositors may be unaware that payments have been made due to lack of transaction alerts on the alternate accounts,” he added.

(NAN)