The Nigerian Deposit Insurance Commission (NDIC) has initiated the liquidation process for the failed Heritage Bank, beginning with verification and payment of depositors. This action follows the Central Bank of Nigeria’s (CBN) revocation of the bank’s license due to ongoing financial instability and breaches of regulatory requirements.

In a public statement, NDIC announced that depositors will receive up to N5 million each through their Bank Verification Numbers (BVN). Those with larger deposits will receive liquidation dividends once the bank’s assets are realized and debts recovered. The NDIC has assured that all valid claims will be honored, urging affected individuals to visit the nearest branch for verification or file claims online.

The Bank Customers Association of Nigeria has endorsed the CBN’s decision, emphasizing the need to safeguard the financial sector. President Dr. Uju Ogubunka highlighted that the revocation was necessary to prevent broader systemic risks. He noted that CBN’s engagement with Heritage Bank’s management aimed to explore all recovery options before deciding on license revocation.

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Experts like Professor Uche Uwaleke praised the proactive measures, stressing the importance of protecting depositors and employees during the liquidation process. The NDIC’s involvement ensures a structured resolution, maintaining confidence in the financial system.

The House of Representatives has committed to overseeing the liquidation process, ensuring transparency and depositor protection. The House’s relevant committees will engage with the CBN and NDIC to guarantee an orderly resolution, maintaining public trust in Nigeria’s banking sector.