The Nigeria Deposit Insurance coverage Company (NDIC) has introduced April 2025 as graduation date for the cost of liquidation dividends to uninsured depositors of the defunct Heritage Financial institution, following appreciable progress in asset realisation.
The Company introduced that the primary tranche of those funds can be disbursed in April 2025 on a pro-rata foundation, in keeping with Part 72 of the NDIC Act 2023, which governs the precedence of claims in financial institution liquidations.
The NDIC, in a press release signed by Hawwau Gambo, Appearing Head of Communication & Public Affairs, reiterated its dedication to making sure depositors obtain their funds as expeditiously as attainable.
The Company defined that, below the provisions of the NDIC Act, insured establishments that develop into bancrupt or have their licenses revoked should prioritise deposit liabilities earlier than settling different claims.
“The place an insured establishment is unable to fulfill its obligations or suspends cost, or the place its administration and management have been taken over by the Central Financial institution of Nigeria following the revocation of its license, the property of the insured establishment shall be obtainable to fulfill its deposit liabilities. Such deposit liabilities shall have precedence over all different liabilities of the insured establishment,” the assertion clarified.
Because of this depositors of the defunct Heritage Financial institution might be paid first, whereas different claimants, together with collectors and shareholders, will solely be thought of for liquidation dividend funds in spite of everything depositors have been absolutely reimbursed. The NDIC reassured the general public that the general banking system stays steady and sound, urging clients to proceed their banking actions with out worry.
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Addressing the issues of depositors whose balances exceed the utmost deposit insurance coverage restrict of N5 million, the Company famous that it was intensifying efforts to make sure immediate funds.
Following the revocation of Heritage Financial institution’s banking license by the Central Financial institution of Nigeria (CBN) on June 3, 2024, the NDIC was appointed because the liquidator below Part 12(2) of the Banks and Different Monetary Establishments Act (BOFIA) 2020 and Part 55(1 & 2) of the NDIC Act 2023. The Company swiftly initiated the liquidation course of, together with the verification and cost of insured deposits as much as the N5 million most per depositor.
A big variety of depositors have already been reimbursed, however the NDIC famous that some delays stay as a consequence of sure account-specific points. “Depositors but to obtain their insured deposits are largely these with no Financial institution Verification Quantity (BVN) or alternate accounts in different banks, that are essential to facilitate cost via the Nigeria Inter-Financial institution Settlement System (NIBSS),” the Company defined. Different affected accounts embody these topic to post-no-debit (PND) restrictions, accounts with Know Your Buyer (KYC) limitations resembling Tier 1 accounts with restrictions on lodgment quantities, and accounts with identify mismatches requiring decision.
Moreover, some depositors who’ve already obtained funds could also be unaware as a consequence of a scarcity of cellular transaction alerts linked to their alternate accounts. “We advise all depositors to verify their alternate financial institution accounts, as some funds could have been processed with out their fast consciousness,” the NDIC said.
Concerning uninsured depositors, the Company confirmed that whereas these with balances above N5 million had obtained their insured portion, the remaining funds can be disbursed as liquidation dividends.
The NDIC has been making vital progress in recovering money owed and disposing of the financial institution’s bodily property to make sure immediate funds to this class of depositors. “We’re actively pursuing the realisation of bodily property and investments whereas aggressively recovering threat property,” the Company affirmed.
To make sure transparency and adherence to authorized necessities, the NDIC has extensively publicised the asset disposal course of via its official web site, social media platforms, nationwide newspapers, radio, and tv broadcasts. The Company mentioned that this multi-pronged method, concurrently paying insured depositors whereas pursuing asset gross sales and debt restoration, goals to speed up the liquidation course of and minimise delays.
“Our precedence is to make sure that all depositors obtain their funds as quickly as attainable. We perceive the issues of affected depositors and are dedicated to dealing with this course of with the very best stage of transparency and effectivity,” the NDIC mentioned.
The NDIC reassured the general public of its unwavering dedication to safeguarding depositors’ funds in all licensed banks and inspired clients to stay assured within the resilience of Nigeria’s monetary system.
