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.

customers whose funds were N5m or less were 99 per cent of the 2.3 million depositors of the bank.

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.”

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.”

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
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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.