The Nigerian Deposit Insurance Corporation (NDIC) has assured depositors of Heritage Bank that it has initiated the payment process following the bank’s liquidation.
NDIC Managing Director, Bello Hassan, announced this on Wednesday in Abuja during a press briefing. He outlined the repayment procedures and emphasized that the corporation would complete settlements within one week, rather than the 30 days mandated by law.
Hassan stated, “Preliminary findings indicate that depositors’ funds amount to about N650 billion, while the bank’s loans total around N700 billion.”
The Central Bank of Nigeria (CBN) revoked Heritage Bank’s operational license on Monday due to its inability to improve 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,” the CBN explained.
Hassan further disclosed that “Among the 2.3 million depositors of the bank, 99 percent have deposits below N5 million, which is within the insured threshold by the NDIC.”
