NDIC Explains Why Payment To Some Customers Of Defunct Heritage Bank is delayed

The Nigeria Deposit Insurance Corporation (NDIC) has shed light on the reasons behind delays in compensating some customers of the defunct Heritage Bank.

NDIC Managing Director Bello Hassan explained that discrepancies in account information, particularly related to Bank Verification Numbers (BVN), are causing holdups in the payment process.

While a substantial number of depositors have already received their insured deposits since June 6, those with information mismatches are experiencing delays.

The NDIC is urging affected customers to visit their website and complete verification forms to facilitate payment processing, including those without BVN-linked alternate accounts.

“The corporation’s payment strategy involves leveraging customers’ BVNs to trace alternate accounts in other banks for depositing the insured amounts. However, name discrepancies and other inconsistencies have posed challenges in linking some accounts,” NDIC said.

For depositors with amounts exceeding five million naira, the NDIC plans to pay liquidation dividends. This process involves disposing of physical assets and recovering loans and advances granted by the bank. Hassan assured that payments would be made progressively as recoveries occur, rather than waiting for complete asset liquidation.

The NDIC aims to maintain transparency by advertising upcoming liquidation dividend payments, allowing concerned depositors to anticipate alerts in their accounts. As the process continues, the NDIC remains committed to ensuring all eligible depositors receive their due compensation, working through the challenges posed by information discrepancies.