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NDIC Begins Payment To Heritage Bank Depositors’ With Less Than N5m

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The Nigeria Deposit Insurance Corporation (NDIC), yesterday announced that payment to depositors with liquidated Heritage Bank having N5 million and below will begin on Monday.

Depositors with more than N5 million will wait for their balance until assets of the liquidated bank are disposed off and money generated, before they are paid.

The Central Bank of  Nigeria (CBN) yesterday revoked the operating licence of Heritage Bank.

According to the apex bank, Heritage failed in its obligations.

A statement by CBN spokesperson Hakama Sidi-Ali said: “The bank’s Board and Management failed to improve its financial performance, posing a risk to the financial stability of the country. Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recovery”.

NDIC Director of Communication and Public Affairs Bashir Nuhu, confirmed that payments to depositors will begin on Monday.

Nuhu said Heritage Bank customers with alternate accounts in other banks will be paid up to the insured amount of N5 million per depositor.

Payments will be facilitated using the depositors’ Bank Verification Numbers (BVN) to identify their alternate accounts. Those with deposits exceeding N5 million will receive additional payments, known as liquidation dividends, after the bank’s assets are sold and debts are recovered.

To facilitate this process, the NDIC and the Central Bank of Nigeria (CBN) are working this week to identify depositors with alternate bank accounts, ensuring they receive their funds promptly starting on Monday.

Nuhu emphasized that depositors with verified BVNs and alternate bank accounts do not need to visit their banks or the NDIC to receive their payments.

For depositors without alternate bank accounts, Nuhu advised them to visit the nearest branch of Heritage Bank with proof of account ownership, a verifiable means of identification (such as a driver’s license, permanent voter card, or National Identity Card), and their BVN.

They can also file their claims online by visiting the NDIC website, downloading the claims form, and upload the required documents.

Creditors of Heritage Bank are also advised to visit the nearest bank branch or use the online platform to file their claims. Payments to creditors will begin immediately after all depositors have been paid.

Debtors of Heritage Bank who have not yet completed their loan repayments have been instructed to contact the NDIC’s Asset Management Department (AMD) and visit the NDIC website to fill out the required documents. Assets recovered from these debtors will be used to pay depositors and creditors of Heritage Bank.

The NDIC reassured the banking public of its commitment to protecting depositors’ funds in all licensed banks. Depositors are encouraged to continue their banking activities without fear, as banks with valid licenses remain safe and sound.

Last month, the NDIC announced an increase in deposit coverage from N500,000 to N5,000,000, now fully covering 98.98 percent of depositors.

NDIC’s Managing Director Bello Hassan stated that the corporation collects premiums annually to fund the deposit insurance system, maintaining over N2 trillion in these funds.

This increase in insured deposit coverage was as a result of factors such as inflation, exchange rates, and per capita GDP. Ensuring swift payment to depositors, often within seven days has become a global best practice.

Hassan clarified that the increase in coverage will not necessarily lead to higher premiums for banks. The NDIC has moved to a risk-based premium framework, where banks managing risks effectively will pay the base rate of 35 basis points, while those with higher risk profiles could face premiums up to 65 basis points.

The NDIC’s actions is meant to ensure the stability and confidence in Nigeria’s banking system, providing a safety net for depositors and maintaining public trust in the financial sector.

  • Reps to engage CBN, NDIC, stakeholders

The House of Representatives committee will look into the liquidation of Heritage Bank by the CBN to provide necessary support to mitigate any potential negative impact on the public.

Spokesman  of the House, Akintunde Rotimi said in a statement that “the House of Representatives is aware of the revocation of the licence of Heritage Bank (under liquidation) by the CBN and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidators, in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA).

“We assure the public, particularly depositors and stakeholders of Heritage Bank, that the House is committed to carrying out its constitutional oversight functions to ensure that this development does not negatively impact Nigerians.

“The relevant House Committees on Banking Regulations; and Insurance will be up to their duty, thoroughly examining the circumstances surrounding this decision and the subsequent steps taken by the NDIC.”

 

Credit: The Nation

BIG STORY

UPDATE: King Sunny Ade Speaks About His Alleged Kidnap In New Video [WATCH]

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Following claims of his alleged “abduction,” Nigerian music legend, King Sunny Ade, has addressed concerns about his whereabouts.

A Nigerian journalist, Olawale Olaleye, had yesterday raised alarm over the disappearance of the music icon.

He further disclosed how a lady identified as Damilola Adeniyi, who claimed to be Sunny Ade’s daughter, had accused the musician’s manager and son, Dayo Adegeye, of “abducting their father and forcing him to work under duress.”

Adeniyi had, in a series of posts on her Instagram handle, accused Dayo, her half-brother, and his siblings, of “using Sunny Ade to get shows which he never attended.”

Reacting to the allegation, Dayo had, in a statement issued on Monday evening, denied the allegation, claiming that “Sunny Ade is safe and in good condition.”

Adegeye reiterated that the musician “was not abducted by anyone,” stressing that his band are working with the family to “put an end to the rumour and protect his reputation.”

Sunny Ade would thereafter appear in a now viral video to confirm his safety and well-being.

As captured in the short video shared on Facebook by Olaleye, the musician was seen singing one of his songs in Yoruba, “ènìyàn laso mi,” before expressing his gratitude to Nigerians for their concern over his whereabouts.

“Glory be to Almighty Father in heaven. I thank God and you my fans all over the world. It’s my children that insisted on seeing me. I thank God within the period I went to relax. I wasn’t kidnapped and also did not run away.

“I have to thank you my fans. Since six to seven hours up till now, the whole world have been calling me out of love.

“This is the beginning. I’m on my way to a show now. I was at a show last Saturday at Lekki. I wonder why people say I’ve been kidnapped. I was never kidnapped.

“To great Nigerians, thank you. Beginning from the President of the great nation Nigeria.” Sunny Ade said in the video.

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Troops Rescue NDLEA Deputy Commander, Five Kidnap Victims In Taraba [PHOTOS]

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The Nigerian Army has announced the rescue of a senior officer from the National Drug Law Enforcement Agency (NDLEA) and five other individuals who had been kidnapped in Taraba State.

The army stated that this rescue operation was conducted in collaboration with other relevant security agencies.

According to Zagazola Makama, a publication focused on counter-insurgency in the Lake Chad region, the rescue followed a distress call received around 11:40 pm on April 27 from Abe Samuel, a youth leader, who reported an attack on a Toyota Hilux vehicle along the Wukari–Kente road.

Troops deployed to the location discovered the abandoned vehicle, identified by registration number FG 117-B03, with a flat tire, but the occupants were missing.

Makama reported that a joint search and rescue operation was immediately initiated, and by 6:00 am on April 28, the troops successfully rescued Musa Hudu, the deputy commander of NDLEA Zone 1, Ibadan, along with five other victims, from a nearby bush.

Makama added that the rescued individuals were unharmed, and initial investigations revealed that they had fled into the bush after three armed men attacked their vehicle and fired at them with a locally made gun.

The victims were safely escorted out of the area and were allowed to continue their journey after their vehicle was repaired.

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Federal Government Plans Five-Month Wage Award Arrears Payment

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The Federal Government has announced its plans to begin the payment of the outstanding “N35,000 wage award arrears” owed to federal civil servants.

This information was disclosed in a statement released by the Office of the Accountant-General of the Federation (OAGF) on Monday in Abuja.

According to a statement signed by the Director of Press and Public Relations, Bawa Mokwa, the outstanding arrears will be paid in instalments, with workers set to receive “N35,000 per month for five months.”

The OAGF clarified that although the “April 2025 salary would be paid separately,” the first part of the wage award arrears would be released immediately after the April salary payment.

“The wage award arrears would not be paid with the April 2025 salary; it will come immediately after the salary is paid,” the statement read.

The Federal Government had previously disbursed wage awards to federal workers for five months as part of efforts to lessen the impact of economic reforms. However, “five months’ arrears remained unpaid.”

The OAGF restated the government’s commitment to fully implementing all policies and agreements related to staff pay and welfare, noting that such efforts were aimed at improving productivity and operational efficiency across ministries, departments, and agencies.

The “N35,000 wage award” was introduced in 2023 as a support measure for workers following the removal of the petrol subsidy and other economic adjustments.

Earlier in January of this year, the Federal Government assured workers that it would clear the arrears of the “N35,000 wage award,” and also stated that the government had resumed the payment of the wage award.

The government also reaffirmed its commitment to addressing issues in the National Minimum Wage agreement reached with the Organised Labour in 2023.

The Minister of Labour and Employment, Nkeiruka Onyejeocha, disclosed the government’s commitment towards implementing agreements with trade unions during separate meetings with the leadership of the Trade Union Congress and Congress of University Academics, in Abuja.

Earlier this month, the Nigeria Labour Congress criticized the Federal Government over the delay in the payment of the minimum wage for certain workers in the federal civil service.

The Federal Government had earlier blamed the delay in payment on the prolonged approval of the “2025 budget.”

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