Heritage Bank: Unresolved Database Issues Delay Customer Payments, Says NDIC
Database inconsistencies, missing BVN delay insured deposit payments as Corporation plans debt recovery
The Nigeria Deposit Insurance Corporation (NDIC) has revealed that some former Heritage Bank customers are yet to receive their insured deposits due to several technical challenges, including database inconsistencies and missing Bank Verification Numbers (BVN).
“The Corporation is not unaware of the case of some depositors who are yet to access their guaranteed sums,” stated NDIC Managing Director, Bello Hassan, during his keynote address at the 2024 NDIC Editors Forum in Lagos. He explained that the delays stem from multiple factors, including “reconciling inconsistencies in the defunct bank’s depositor’s database, absence of Bank Verification Numbers (BVN), placement of restrictions on some accounts and in some cases name mismatch.”
Hassan emphasized the importance of customers complying with Know Your Customer (KYC) regulations set by the Central Bank of Nigeria, noting that proper documentation facilitates “prompt reimbursement in the event of bank closure.”
The NDIC is also addressing the concerns of customers with deposits exceeding the N5 million insurance threshold. “Having largely reimbursed depositors their insured deposits, the Corporation is committed to ensuring that depositors with balances exceeding N5 million are also paid the balance of their deposits,” Hassan stated, highlighting that these uninsured deposits constitute a significant portion of Heritage Bank’s total deposits.
To fulfill these larger payment obligations, the Corporation has initiated a recovery strategy. “The Corporation is already working assiduously to ensure that depositors with amounts over the maximum insured amount of N5 million are paid through liquidation dividends from the realisation of the defunct bank’s assets and recovery of debts,” Hassan explained. This process includes debt recovery efforts and the liquidation of the bank’s investments and physical assets.
The NDIC’s announcement reflects its ongoing commitment to protecting depositors’ interests while revealing the complexities of resolving failed bank situations. The Corporation’s attention to both insured and uninsured deposits shows its dedication to maintaining public confidence in Nigeria’s banking system during institutional transitions.
