NDIC goes after Heritage Bank loan defaulters owing N700bn after CBN license revocation

The Nigeria Deposit Insurance Corporation (NDIC) has revealed plans to pursue Heritage Bank's loan defaulters, who collectively owe the bank N700 billion.

NDIC's Managing Director, Bello Hassan, made this announcement during a press conference in Abuja on Wednesday, June 5, 2024.

As the liquidator appointed by the Central Bank of Nigeria, the NDIC also assured that it would disburse insured deposits to depositors of the now-defunct Heritage Bank, specifically those with accounts holding N5 million or less.

Hassan stated that Heritage Bank had issued loans totalling approximately N700 billion, and the NDIC is determined to recover as much of this amount as possible under the authority of the NDIC Act 2023.

According to Punch, the NDIC boss assured the public that the agency would effectively utilize its powers to accomplish this objective.

He said: “After paying depositors, we will move on to creditors. Our preliminary assessment shows total deposits of around N650bn, with loans exceeding N700bn.

“We aim to recover these loans, empowered by the NDIC Act 2023, which provides a sufficient legal framework for debt recovery. We assure the public that we will leverage these powers to recover as much as possible, starting immediately.”

It is worth noting that on Monday, June 3, 2024, the CBN announced the revocation of Heritage Bank's license due to regulatory violations.

This decision has led to significant discontent among the bank's customers, who have flocked to its headquarters in Lagos to find out how they can retrieve their deposits.