The Nigerian Deposit Insurance Corporation (NDIC) has certified 2.3 million Heritage Bank depositors to receive payout.

The NDIC’s Managing Director, Bello Hassan, made the announcement on Wednesday during a media conference in Abuja about Heritage Bank’s liquidation after the Central Bank of Nigeria (CBN) revoked its licence for violating Section 12 (1) of the BOFIA, 2020.

He noted that 99 percent of Heritage Bank depositors had total balances of less than N5 million.

According to Hassan, all depositors at the bank are now being validated for the payment of the insured benefit of five N5 million, while depositors with insured deposits more than N5 million would be reimbursed when the bank’s assets are sold.

The NDIC MD informed the public that payment to the bank’s depositors will begin before the end of the week, easing the apprehension that had gripped clients following the license revocation.

According to Hassan, Heritage Bank’s total bank deposits are N650 billion, with a loan portfolio of more over N700 billion.

He stated that the NDIC looks forward to ensuring the loan repayment within the next six months.

According to the CBN, the decision to revoke Heritage Bank’s licence is to strengthen public confidence in the banking system, and ensure that the soundness of the financial system is not impaired.

The ongoing liqiudation process by the NDIC follows its appointment by the apex bank as the liquidator of the bank under Section 12 (2) of BOFIA, 2020.