Heritage Bank depositors voice frustration over delayed compensation amidst NDIC’s claims

Nearly three months after the Central Bank of Nigeria (CBN) liquidated Heritage Bank, depositors are increasingly voicing concerns over delays in receiving their insured deposits, which are guaranteed up to N5 million by the Nigeria Deposit Insurance Corporation (NDIC).

Despite NDIC’s earlier assurances, many depositors claim they have yet to be compensated, raising doubts about the transparency and efficiency of the liquidation process.

Following the liquidation on June 3, NDIC announced that 99% of Heritage Bank depositors held balances of less than N5 million, suggesting that most would be fully compensated under the insured deposit scheme.

In a subsequent statement, NDIC claimed to have promptly reimbursed 82.36% of insured deposits, attributing delays in the remaining 17.64% to various account issues, including “post no debit” (PND) instructions, lack of Bank Verification Numbers (BVN), and accounts without Know Your Customer (KYC) compliance.

However, Ifeanyi Uwakwe, a representative of the depositors, contested these claims during an appearance on Arise Television’s NewsDay on August 30. Uwakwe criticized the NDIC’s handling of the liquidation, alleging that a significant number of depositors have not received any payments.

READ ALSO: Why some Heritage Bank customers are yet to get their money–NDIC

He expressed concern over the financial strain this delay has caused, particularly for market-based traders who rely on daily cash flow for their businesses.

“It is not true that NDIC has paid up to 80% as claimed. Many of our members are yet to be paid and are really being impacted negatively by the delay,” Uwakwe stated.

He also questioned the Central Bank’s oversight, pointing to the annual financial reports and quarterly inspections that failed to prevent Heritage Bank’s collapse. “What were these inspections for if the bank was allowed to deteriorate to this point?” he queried.

Another customer, who wished to remain anonymous, also disputed the NDIC’s explanations, stating, “The PND instructions, BVN issues, and other excuses given by NDIC do not apply to me. I have over N5 million in my account, and I have not received anything from them.”

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The frustration among depositors is palpable, with many feeling abandoned by the institutions meant to protect their interests. The lack of clear communication and prolonged delays have only intensified their concerns.

Attempts to reach NDIC for further clarification have been unsuccessful. Bashir Nuhu, the NDIC spokesperson, has not responded to inquiries sent via WhatsApp since August 30, leaving depositors in the dark about when they can expect their funds.

As the situation drags on, the credibility of the NDIC’s claims and the overall liquidation process remains under scrutiny, with stakeholders calling for more transparency and a swift resolution to the crisis.