The Federal Government has opened an online channel for depositors of Heritage Bank Plc to retrieve their funds following the revocation of the operating licence of the defunct bank.
The Central Bank of Nigeria (CBN) announced on Monday that it revoked the operating licence of Heritage Bank, citing the bank’s failing financial performance as a threat to the stability of the Nigerian financial system.
Mrs. Hakama Sidi Ali, CBN’s Acting Director, Corporate Communications, said in a statement seen by Technology Times that the action was taken in accordance with the apex bank’s mandate to ensure a sound financial system in Nigeria.
CBN said it had previously “engaged with the bank and prescribed various supervisory steps intended to stem the decline” in Heritage Bank’s financial performance.
Heritage Bank, CBN, the banking industry regulator said, had breached Section 12(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020 “due to the bank’s board and management not being able to improve the bank’s financial performance.” The CBN further explained that “this situation constitutes a threat to financial stability.”
CBN said it had previously “engaged with the bank and prescribed various supervisory steps intended to stem the decline” in Heritage Bank’s financial performance.
“Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the licence the next necessary step,” according to CBN.
Heritage Bank: What next?
In the wake of the CBN action, the apex bank said that the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the official liquidator of Heritage Bank Plc, as mandated by Section 12(2) of BOFIA 2020.
The banking sector regulator later reassured the public that “the Nigerian financial system remains on a solid footing. The revocation of Heritage Bank’s licence is an isolated incident and reflects the CBN’s commitment to “ensure the safety and soundness of our financial system.”
Meanwhile, the NDIC has waded in saying that it has started the liquidation of Heritage Bank.
Bashir A. Nuhu, NDIC’s Director of Communication & Public Affairs outlined the options opened to depositors of the defunct bank as NDIC is responsible for protecting depositors’ money in licensed banks up to a certain amount.
Heritage Bank: NDIC outlines guide for depositors to file claims
NDIC said that depositors with Heritage Bank accounts have two options:
- According to NDIC, if you have an alternate bank account in Nigeria, the NDIC will use your Bank Verification Number (BVN) to locate that account and transfer your insured amount (up to N5 million) directly.
- If you don’t have another bank account, you can visit a Heritage Bank branch with your proof of ownership (account statement), ID (driver’s licence, voter’s card, or National ID card), and your preferred account details (including BVN) for verification and claim your insured amount.
- The NDIC has also provided an online portal through which depositors can file claims on (https://ndic.gov.ng/). Depositors are required to download and fill the claims forms and upload the required documentation.
According to NDIC, depositors with funds exceeding N5 million will receive a portion of their money after the NDIC sells Heritage Bank’s assets and collects debts owed to the bank.
Creditors who are owed money by Heritage Bank can also file claims with the NDIC, either by visiting a branch or through the provided online platform. However, NDIC says that creditors will be paid only after all depositors have received their insured amounts.
For debtors, if you have a loan from Heritage Bank, NDIC said that you are still obligated to repay it. The NDIC asked the defunct bank’s debtors to contact Corporation’s Asset Management Department (AMD) and visit their website.
About Heritage Bank
Heritage Bank Plc, began operations in 2013 after acquiring the banking licence of Societe Generale Bank of Nigeria (SGBN), which was re-issued by the CBN in December 2012. This reissued licence came after SGBN’s original licence was revoked by the CBN in 2006 due to its inability to meet the minimum capital requirements for national banks. SGBN successfully challenged the closure in court and was reissued a licence with a downgraded status as a regional bank.
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