₦airaland Forum

Heritage Bank: NDIC goes after N700bn loan defaulters, lists 2.3m depositors
6th June 2024

The Nigeria Deposit Insurance Corporation has announced that it will pay out insured deposits to depositors of the defunct Heritage Bank who have N5m or less in their accounts.

NDIC, who was appointed liquidator of the bank by the Central Bank of Nigeria said that it would ensure the payment is done within one week.

Managing Director of the NDIC, Bello Hassan, at a press conference held on Wednesday in Abuja, revealed that customers whose funds were N5m or less were 99 per cent of the 2.3 million depositors of the bank.

Hassan said, “Our primary objective is to protect depositors and maintain financial system stability. We will start by paying depositors the maximum insured amount of N5m, leveraging the Bank Verification Number facility.”

“Our focus is on depositors and creditors, with depositors taking priority. We will start by paying depositors the maximum insured amount of N5m. Depositors with alternate bank accounts can visit any NDIC branch for payment, while those without can use the NDIC website to claim their insured amount.”

He also noted that the NDIC would later focus on paying uninsured deposits and creditors, from proceeds of the liquidation of the bank’s assets.

With about N650bn in deposits and N700bn in loans, the NDIC aims to recover as much as possible, empowered by the NDIC Act 2023. Hassan assured the public that the agency would leverage its powers to achieve this goal efficiently.

“After paying depositors, we will move on to creditors. Our preliminary assessment shows total deposits of around N650bn, with loans exceeding N700bn.

“We aim to recover these loans, empowered by the NDIC Act 2023, which provides a sufficient legal framework for debt recovery. We assure the public that we will leverage these powers to recover as much as possible, starting immediately,” he said.

In a statement signed by the Acting Director of Corporate Communication, Sidi Ali, on Monday, the CBN announced the revocation of the licence of Heritage Bank citing a breach of its rules.

The regulator said, “This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. 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.

“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the license the next necessary step.”

Meanwhile, customers of the liquidated Heritage Bank gathered at the bank’s headquarters in Lagos on Wednesday, to seek answers on how to get their deposits back.

According to the News Agency of Nigeria, guards prevented customers from entering the premises.


Addressing the customers through the gate, an official informed them that payments had begun for savings account holders and would continue until Friday.

“You don’t need to take any action. NDIC staff are already processing payments. Your money will be transferred to your other account linked with your BVN,” the official assured them.

However, corporate account holders were advised to return “next week,” leading to concerns among some who noted that BVN is typically associated with individual accounts, not companies.

The atmosphere remained sombre as customers declined interviews with NAN.

A customer simply stated, “Mine is an entrepreneurship account.”

Efforts by a NAN correspondent to gain entrance were thwarted by security personnel, who referred to the Central Bank of Nigeria’s press release dated June 3, announcing the revocation of the bank’s license, as the response to all inquiries.

https://punchng.com/heritage-bank-ndic-goes-after-n700bn-loan-defaulters-lists-2-3m-depositors/

Meanwhile, customers of the liquidated Heritage Bank gathered at the bank’s headquarters in Lagos on Wednesday, to seek answers on how to get their deposits back.


Till now, I still can't understand why people bank with this kind of bank then left their funds there despite all the concerning news about the bank that has been flying about for years now. Haba.
May God bless Nigeria for ever! Check my signature for free stuffs!

Gagantuan gaga!

Any bank can fold up. But some banks are more reliable than others. Whatever can end First Bank, UBA or Zenith Bank must have first crushed all other banks before getting to any of these three banks in Nigeria. Each of these three banks can merge or change name at any time. But folding up will be tough.

Any of these three banks can be wounded any time, but folding up will first cost the end of other ones. First Bank is affected by the unethical behaviours of this Heritage Bank. But First Bank is still standing.

Choosing a bank is like choosing custmetics or medications. Don't follow adverts and packaging, check the contents and the factory standards.

I heard that a lot of their staff took heavy loans and Japa when they started noticing what was happening.

make nothing sha do my #2,500

I pity those who have savings and shares with them. Total recovery is not guaranteed, take this from me.

People owing the bank will jubilate. People with money deposited go cry. All these banks modes of operation na scam. Collecting people's money to borrow others.

FreeStuffsNG:
Meanwhile, customers of the liquidated Heritage Bank gathered at the bank’s headquarters in Lagos on Wednesday, to seek answers on how to get their deposits back.


Till now, I still can't understand why people bank with this kind of bank then left their funds there despite all the concerning news about the that has been flying about for years now. Haba.
May God bless Nigeria for ever! Check my signature for free stuffs!

I’m sure you use Opay and the likes yet see what you’re posting

I stopped banking with all this cockroach banks since 2022, one useless micro finance bank that call themselves rain for hervest really do me shege back then, I lost 250k and one of my friend lost almost 500k, up till today nobody knows the whereabout of the bank owner, we have accepted our lost and moved on. The only bank am using presently is first bank and I will never make mistake of having more than 100k in my bank account, even if I have 200 million naira today, I will use it to buy goods for hoarding purpose, banks can not be using my money for business and be debiting any time they like.

Na to go commot my money for Polaris ooooo

I thought NDIC insures and is empowered to pay only a maximum of N50k per account irrespective of how much money held in that account? Enlighten me someone @ awesomeJ

Why are they trying to code the Oladipupo Abiola guy in their Treasury department that stole 50M and ran away with his wife to Canada?

Noted.

PNomsule:
I thought NDIC insures and is empowered to pay only a maximum of N50k per account irrespective of how much money held in that account? Enlighten me someone @ awesomeJ

NDIC cannot pay you N50k if all you have in your account is N3500.

The maximum amount NDIC can pay depositors is N5m.

This your attached picture is crazy funny! 🤣🤣

Ensa777:
I heard that a lot of their staff took heavy loans and Japa when they started noticing what was happening.

What happens to those with domiciliary accounts?

OboOlora:
Why are they trying to code the Oladipupo Abiola guy in their Treasury department that stole 50M and ran away with his wife to Canada?

So many people cut comot for the bank bodi.

The wife of a popular comedian who left the bank as an ED is walking free in Nigeria now.

With all the hardship surrounding the country, your hard earned money walka join too.
It's a pity..

Arabaincubus:
What happens to those with domiciliary accounts?

Alfa abi sheik with BIA BIA got burnt and you are here asking what happened to the bia bia!

immortalcrown:
Gagantuan gaga!

Any bank can fold up. But some banks are more reliable than others. Whatever can end First Bank, UBA or Zenith Bank must have first crushed all other banks before getting to any of these three banks in Nigeria. Each of these three banks can merge or change name at any time. But folding up will be tough.

Any of these three banks can be wounded any time, but folding up will first cost the end of other ones. First Bank is affected by the unethical behaviours of this Heritage Bank. But First Bank is still standing.

Choosing a bank is like choosing custmetics or medications. Don't follow adverts and packaging, check the contents and the factory standards.

any bank can fold up. the reason for bank's folding up and in this case heritage bank is when the bank has exceeded its loans threshold and has more bad debts outside. every bank has a loan threshold. meaning that a bank ought not to give loans above a certain percentage of its deposits. this is to guarantee its survival. when a bank does not adhere to this and ends up having so many bad loans outside of its system, then it will go down.

Negroid001:
People owing the bank will jubilate. People with money deposited go cry. All these banks modes of operation na scam. Collecting people's money to borrow others.

Debtors of the bank will jubilate how? It is far better to owe a commercial bank than to owe the government.

iLoveYouToo:
I’m sure you use Opay and the likes yet see what you’re posting

Smh. Opay ko Okay ni. If it's not a brick and mortar bank then it's not for me until these 'neobanks' become real banks.

immortalcrown:
Gagantuan gaga!

Any bank can fold up. But some banks are more reliable than others. Whatever can end First Bank, UBA or Zenith Bank must have first crushed all other banks before getting to any of these three banks in Nigeria. Each of these three banks can merge or change name at any time. But folding up will be tough.

Any of these three banks can be wounded any time, but folding up will first cost the end of other ones. First Bank is affected by the unethical behaviours of this Heritage Bank. But First Bank is still standing.

Choosing a bank is like choosing custmetics or medications. Don't follow adverts and packaging, check the contents and the factory standards.

Trust me, if it's not First Bank, Zenith, Access, UBA, GTB, Ecobank, Standard chartered and Stanbic.. Count me out.

When it comes to my money, I am very conservative .. Call me old school, I don't care.. lol

PNomsule:
I thought NDIC insures and is empowered to pay only a maximum of N50k per account irrespective of how much money held in that account? Enlighten me someone @ awesomeJ

Maximum of 5millon! Any amount above 5milli will be settled after recovering of loans and otherwise! Meanwhile, 99% has 5 million and below. Na just few pple get plenty millions

Pay customers please

The Law was amended.

IMPLICATIONS

A. If you have N10k savings in the bank, NDIC will pay you the full 10k amount.

B. If you have N10m deposits in the bank, NDIC will pay you N5m insured amount in the first instance. Once NDIC is able to liquidate the assets of the bank, and recover the bad loans, your balance of N5m will be paid.

PNomsule:
I thought NDIC insures and is empowered to pay only a maximum of N50k per account irrespective of how much money held in that account? Enlighten me someone @ awesomeJ

iLoveYouToo:
I’m sure you use Opay and the likes yet see what you’re posting

igbo

G

PNomsule:
I thought NDIC insures and is empowered to pay only a maximum of N50k per account irrespective of how much money held in that account? Enlighten me someone @ awesomeJ

i dey vex anytime i hear "i thought"

lazy youth, read and research or kuku ask questions, illiterate

[quote author=maxiuc post=130335835]Na to go commot my money for Polaris oooo




That's another bank that is shaking right now.

Khyrvxjzy:
i dey vex anytime i hear "i thought"

lazy youth, read and research or kuku ask questions, illiterate

So in the post you quoted, what does it seem like he's doing if not asking questions.

I hope your comment was made as a joke sha, otherwise it describes you more than whom you're addressing.