The Nigerian Deposit Insurance Corporation (NDIC) has moved swiftly to allay fears of depositors in Heritage Bank, assuring them that the process of repayment is already underway.
Managing Director Bello Hassan made this announcement during a briefing, where he detailed the repayment procedures.
Contrary to the usual 30-day timeline stipulated by law, NDIC is committed to settling customers within just one week.
This assurance comes in the wake of the Central Bank of Nigeria’s (CBN) decision on Monday, June 4, to revoke Heritage Bank’s banking license. The move was prompted by the bank’s continued struggle to improve its financial performance.
According to the CBN, the inability of the bank’s board and management to enhance its financial standing posed a significant threat to overall financial stability.
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Despite efforts to turn the bank’s fortunes around, Heritage Bank failed to demonstrate sufficient progress, leading the CBN to conclude that there were no reasonable prospects for recovery. Consequently, the revocation of the bank’s license became the inevitable course of action.
With depositors understandably concerned about the fate of their funds, NDIC’s swift action to expedite the repayment process brings a measure of relief. Details regarding the repayment procedures and timelines are expected to be released shortly, offering further clarity to affected depositors.
