The Nigerian Deposit Insurance Corporation (NDIC) announced on Wednesday its intention to pursue debtors of Heritage Bank who collectively owe the bank approximately N700 billion.
The Managing Director of NDIC, Bello Hassan, disclosed this during a press briefing in Abuja. This move follows the Central Bank of Nigeria’s (CBN) decision on Monday to revoke the license of Heritage Bank Plc, aiming to ensure stability in the banking sector. The revocation raised concerns among customers, stakeholders, and the general public.
The CBN’s decision to revoke the license was executed under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, with the goal of maintaining a sound financial system in Nigeria.
Hassan revealed that, based on a preliminary assessment, the bank holds about N650 billion in depositor funds. He assured customers that recovering the N700 billion in outstanding loans would cover the depositor funds adequately.
“From our preliminary assessment, we have found out that Heritage Bank has N650 billion in deposits and loans amounting to about N700 billion. If we recover this amount, no depositor will lose their deposit,” Hassan stated. “We assure depositors that there is no need to panic and that they will get their money back.”
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The NDIC has been appointed as the liquidator of Heritage Bank. Customers with insured deposits will be paid up to the insured limit of N5 million. Concerns had arisen that customers with amounts exceeding the insured limit might be at risk, but Hassan reassured depositors of their safety.
“There is no need for panic. There are 2.3 million depositors of Heritage Bank, and about 99.9 percent of that figure have less than N5 million as deposits,” he said. “Only about 4,000 depositors have deposits of N5 million and above.”
READ ALSO: CBN Explains Reasons Behind Revocation of Heritage Bank’s License
Hassan’s statements aim to calm fears and ensure depositors of Heritage Bank that their funds are secure, with the NDIC committed to recovering the owed loans and safeguarding depositor interests.
