The Nigeria Deposit Insurance Corporation (NDIC) announced on Monday the commencement of the liquidation process for Heritage Bank Plc, following the revocation of the bank’s operating license by the Central Bank of Nigeria (CBN).

NDIC’s spokesperson, Bashir Nuhu, said in a statement on Monday that the liquidation is in accordance with Section 55 Sub-sections 1 & 2 of the NDIC Act 2023.

NDIC stated that depositors of the bank who have alternate accounts within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account.

It added that depositors with funds in excess of N5 million will be paid liquidation dividends upon the realisation of the bank’s assets and the recovery of debts owed to the bank.

“Following the revocation of the banking licence of Heritage Bank Plc by the Central Bank of Nigeria (CBN) today, June 3, 2024, and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator, pursuant to Section 12(2) of BOFIA, 2020, the corporation wishes to announce to depositors of the bank in particular and the banking public in general, as follows,” NDIC statement reads.

“The NDIC has commenced the liquidation of Heritage Bank Plc: In accordance with Section 55 sub-section 1 & 2 of the NDIC Act 2023, the corporation has commenced the liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank depositors.

“Depositors of the bank that have alternate accounts within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account. While depositors with funds in excess of N5 million will be paid liquidation dividends upon realisation of the bank’s assets and recovery of debts owed to the bank.”

NDIC, however, urged depositors without an alternate bank account in the industry to visit the nearest branch of the bank with proof of account ownership and a verifiable means of identification.

All depositors of the defunct bank without an alternate bank account in the industry are advised as follows:

1) Visit the nearest branch of the bank with proof of account ownership and verifiable means of identification such as a driver’s license, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums, or file an online claim by visiting the NDIC website claims page on www.ndic.gov.ng/claims/claims, download and fill out the claims forms, and upload the required documentation.

2) Verification and Payment of Creditors: Creditors are also advised to visit the nearest branch of the bank to file their claims or use the online platform. Please note that the process of payment to creditors will commence immediately after all depositors have been paid. Debtors’ Repayment of Loans: Debtors who have yet to complete the repayment of loans are advised to contact the Corporation’s Asset Management Department (AMD). Visit the NDIC website for more details,” the statement added.

NDIC also guaranteed depositors the safety of their funds, stating, “The NDIC wishes to assure the entire banking public of its commitment to the continued safety of depositors’ funds in all licenced banks. As such, depositors are urged to continue their banking businesses without fear, as banks whose licences have not been revoked remain safe and sound.”