Following the revocation of the operating license of Heritage Bank by the Central Bank of Nigeria (CBN) on Monday, the Nigerian Deposit Insurance Corporation (NDIC) has disclosed that it will pay a maximum of N5 million to each depositor of the bank.
This was contained in a notice to depositors of the bank on Monday by the NDIC while noting that the stipulated maximum payment is in line with extant laws in the case of revocation of licences.
The corporation advised customers to remain calm as it initiates the process of settling insured deposits.
“The Governor of the Central Bank of Nigeria (CBN) on 3RD day, June, 2024, revoked the banking licence of Heritage Bank. Consequently, the Corporation, as the appointed Liquidator; in line with sections 55 (1) (2) and 56 (3) of Nigeria Deposit Insurance Corporation (NDIC) Act, 2023, will take necessary steps to wind up the affairs of the bank.
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“Consequently, the Corporation, as the appointed Liquidator; in line with sections 55 (1) (2) and 56 (3) of Nigeria Deposit Insurance Corporation (NDIC) Act, 2023, will take necessary steps to wind up the affairs of the bank”.
“Defunct Heritage Bank operated as an insured institution under the provisions of the Nigeria Deposit Insurance Corporation Act, 2023.
“The Corporation will pay all its depositors their insured deposits up to the statutory maximum of N5,000,000.00 per depositor for Deposit Money Banks (DMBS)/mobile money subscribers.
“Depositors with funds in excess of the insured deposits will be paid as and when the assets of the closed bank are realised.
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“Depositors will soon be notified by publication in national dailies as to the commencement of payment of the insured deposits” the statement reads.
According to the statement, all depositors who have questions or require further clarifications on their accounts or payments in the closed bank can contact the NDIC.
It would be recalled that NDIC only last month announced the upward review of maximum deposit insurance coverage for various categories of deposit-taking financial institutions licensed by the CBN.
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The maximum deposit insurance coverage for depositors of Deposit Money Banks (DMBs) has increased from N500,000 to N5,000,000; Microfinance Banks (MFBs) from N200,000 to N2,000,000; Primary Mortgage Banks (PMBs) from N500,000 to N2,000,000; Payment Service Banks (PSBs) from N500,000 to N2,000,000 and subscribers of Mobile Money Operators (MMOs) from N500, 000 to N5,000,000 per subscriber, aligned with DMBs’ coverage level.
The MD/CEO of NDIC, Mr. Bello Hassan, made the announcement at a press conference in Abuja recently.
He said the Interim Management Committee (IMC) of the Corporation approved the revised maximum deposit insurance coverage during its 18th meeting held on April 24th and 25th, 2024.
He said the decision is in line with the Corporation’s commitment to enhancing depositors’ protection, bolster public confidence, financial inclusion, and stability of the financial system.
