This is contained in statement on Sunday by Hawwau Gambo, Acting Head, Communication and Public Affairs.

She said the funds were realised from sales of the bank’s assets and recovery of debts owed.

Gambo explained that a liquidation dividend is paid to depositors of a closed bank, beyond the maximum insured limit, using proceeds from asset sales and debt recovery.

She added that liquidation dividends might also cover payments to creditors and shareholders once all depositors had been fully reimbursed.

The NDIC began payment of the first tranche of liquidation dividends on April 25.

According to Gambo, the initial dividend is paid at 9.2 kobo per Naira on a pro-rata basis to depositors with balances above N5 million.

She noted that further payments would be made as more assets of the defunct bank are realised and outstanding debts recovered.

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Following the revocation of Heritage Bank’s licence by the Central Bank of Nigeria, CBN, on June 3, 2024, NDIC immediately reimbursed insured deposits up to N5 million.

To ensure a seamless process, NDIC used depositors’ Bank Verification Numbers, BVN, to locate alternate accounts and automatically credit the insured amounts.

The corporation also used existing records from insured payments to disburse the first tranche of liquidation dividends.

“Depositors with balances exceeding N5 million who did not receive their liquidation dividends should visit the nearest NDIC office.

“Depositors without alternative bank accounts, who were not paid the insured amount, should also visit NDIC offices or download forms from www.ndic.gov.ng.

“Depositors must complete and submit a deposit verification form to receive their insured amounts and, where applicable, the first tranche of dividends,” Gambo said.

She reiterated NDIC’s commitment to ensuring the recovery of assets and the reimbursement of all eligible depositors

Source: NAN

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People build things. Tech. Aircraft. Garden. Business. Gazebo. Football. People are in the belly of tech. Tech defers to commands. People design the commands. Tech cannot build anything unless people designed it to do so. Noah built the ark, not the ark Noah. Tech does not exist on its own. People own technology. Tech does not own the people. However, tech can become addictive: you cannot live without it.

On the one hand

A bank, formerly known as Heritage, has lost its heritage. It has ceased to exist. Depositors have an assurance. They will get their deposits. Those who owe will also be made to pay. How did Heritage lose its heritage? I do not know. I am not a banker. I am a writer. But varying reports have it that the bank formerly known as Heritage was mismanaged.

On the other hand

Even with its sexy banking tech, it had poor business practices. NDIC, that is Nigeria Deposit Insurance Corporation, said the bank had too many bad loans. It was earning low interest. From every N100 loan, N81.2 was bad. The loans are irrecoverable. Is that why it had insufficient assets? Is that why it failed to comply with specific obligations imposed by the Banks and Other Financial Institutions Act (BOFIA) 2020? And the Central Bank of Nigeria (CBN) Act?

Is that why it was undercapitalised? Is that why it had a capital adequacy ratio below the prudential minimum for its license category? Is that why its financial performance and condition posed a threat to financial stability? Is that how we got to the present?

In the long term

Anyway, remove the people from the business. Outsource the rest to technology: Human resources, customer service, accounting, etc. Like a driverless car, run the business on automation. Leave out human involvement. And let us check the result in a few years. Disaster.

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In How Companies Can Win, Mckinsey.com wrote that few executives would debate the importance of talent. Or the difficulty that many have in attracting and keeping top people. However, companies are not treating talent with the urgency it demands.

My former bank account officer lives in Canada. She migrated with her family. But we are still good friends. After she left the bank, we have built a good relationship. The bank has not found a replacement for her. Yet. Her role was so significant that all of the accounts she managed in Nigeria still carry her tag name. The bank has not filled her role.

According to McKinsey, amidst this reality is the increasing complexity of IT systems. And the emergence of a broad range of new technologies: from cloud to artificial intelligence and machine learning. The challenges have increased. To succeed, companies need to use a set of well-considered strategies: hiring, reskilling, upskilling, reallocating, and sourcing.

However, with his wealth and shrewdness, Elon Musk still needed people to run X. His money could not buy him the sexiest tech that would run X on autopilot. He needs people. Musk knows that sexy tech does not grow tech firms, fintech, or a bank. People do.

That is why some local firms still use a ledger for their accounting. And these companies have transcended generations. Do not mix it up. Tech has its place. Talent has its use. Bad people will misuse a sexy tech. Tech cannot remake bad talent. But smart, bad talented people can pull down an empire. ‘The first step in closing the skills gap is rigorous discipline in identifying specific talent needs’. McKinsey counselled.

In the short term

The price tag of your tech does not grow your fintech or bank. It is the heart of your people. Your zany suits, your hot higher heels, and your sleek saloon auto do not dazzle customers. It is the heart of your people.

*Olaegbe (psalmsonolaegbe@gmail.com)

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A visit by a News Agency of Nigeria, NAN, correspondent on Wednesday revealed that security personnel stationed at the bank’s entrance prevented customers from entering the premises.

Addressing the customers through the gate, an official informed them that payments had begun for savings account holders and would continue until Friday.

“You don’t need to take any action. NDIC staff are already processing payments. Your money will be transferred to your other account linked with your BVN,” the official assured.

However, corporate account holders were advised to return “next week,” leading to concerns among some who noted that BVN is typically associated with individual accounts, not companies.

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The atmosphere remained sombre as customers declined interviews with NAN.

A customer simply stated, “Mine is an entrepreneurship account.”

Efforts by a NAN correspondent to gain entrance were thwarted by security personnel, who referred to the Central Bank of Nigeria’s press release dated June 3, announcing the revocation of the bank’s licence, as the response to all inquiries.

CBN revoked Heritage Bank Plc’s license on Monday, citing a breach of Section 12 (1) of BOFIA, 2020, and appointed the Nigeria Deposit Insurance Corporation, NDIC, as the liquidator.

NDIC Managing Director, Mr Bello Hassan, disclosed at a news conference in Abuja that 99 per cent of Heritage Bank depositors had total balances less than N5 million.

He assured that payments would start before the end of the week, with insured benefits capped at N5 million.

According to him, those with deposits exceeding N5 million would be paid after sale of the bank’s assets.

He added that payments would begin before the end of the week.

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The Managing Director of NDIC, Mr Bello Hassan, said this while briefing newsmen in Abuja on Wednesday.

The managing director said the move was to engender confidence among depositors to promote financial stability.

He said that 99.9 per cent of depositors of the defunct bank had a deposit balance of less than five million naira while only 4,000 of the depositors had more than five million naira deposit.

Hassan said the bank had deposits worth N650 billion and loans of about N700 billion.

He said the deposits and the loans could be more, adding that the final amount would be known at the end of the liquidation processes.

According to him, customers with Bank Verification Number, BVN, will be paid without verification with the Corporation while those without BVN will visit the nearest NDIC office or website for their verification.

The managing director said that there was no need for depositors to panic as the Corporation would settle all insured deposits.

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“NDIC has assumed charge of the Heritage Bank.

“The bank has 116 branches and regional offices and we have deployed close to 400 staff of NDIC to take charge of the assets.

“If you have N100, we will pay you, if you have N5 million, we will pay you, if you have N10 million, we will pay N5 million for now because that is the insured sum.

“Depositors do not need to panic, you will get your monies back.

“We will start payment of the insured sums by this week but it will be difficult for me to give the time frame for the payment of the uninsured deposits,’’ he said.

On challenges of banks’ liquidation, he said the Corporation had experienced difficulties in loans recoveries.

Hassan, however, assured that the Corporation would immediately commence the process to avoid delays.

On litigations, he said the Corporation was ready for any litigation that would emanate from the handover of the bank.

Hassan said the Corporation would rely on support from the judiciary for expedited hearings on any debt recovery case brought by the Corporation.

“When cases are delayed in debt recovery, it is depositors that suffer.

“We believe that the judiciary will give the cases accelerated hearing,’’ he said.

The managing director assured bank customers that the system was safe and sound, saying that they should continue their banking businesses without fear.

Source: NAN

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The declaration was made on Tuesday by the CBN’s Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, in a statement issued in Abuja.

She said the declaration became necessary in view of the allegations in some quarters of plans to revoke the licences of Unity, Keystone and Polaris banks, following the withdrawal of the operating licence of Heritage Bank on Monday.

The statement reads in part: “The attention of the CBN has been drawn to some information circulating in the public domain, suggesting that the CBN is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday.

“The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system.

“The Nigerian financial system remains safe, sound, and resilient.

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“Our banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs).”

She said the apex bank was at that moment reviewing the plans.

She stated that in addition to enhancing buffers to withstand economic shocks, the proactive measure by the CBN to require CMNIBs to recapitalize, would result in increased capital for Nigeria’s bank.

That, according to her, would enable them to provide much-needed credit to critical sectors of the economy.

“This will increase the financial system’s contribution to the growth and development of a one trillion dollars Nigerian economy.

“The CBN will like to reassure all stakeholders of its unwavering commitment to ensuring the financial system’s stability.

“Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness,” she said.

It would be recalled that the CBN, on Monday, announced the revocation of Heritage Bank’s licence.

The revocation was said to be in line with the CBN’s mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act, BOFIA.

Source: NAN

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The Central Bank of Nigeria, CBN, revoked Heritage Bank’s license on Monday.

Mr Bashir Nuhu, Director of Communications and Public Affairs, NDIC, in a statement, said that relevant laws necessitated immediate actions to safeguard depositors’ funds.

“Following the revocation of the banking license of Heritage Bank Plc by the Central Bank of Nigeria (CBN) today, June 3, 2024 and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator, pursuant to Section 12(2) of BOFIA, 2020,

“The corporation wishes to announce to depositors of the bank in particular and the banking public in general, as follows:

“The NDIC has commenced the Liquidation of Heritage Bank Plc in accordance with Section 55 sub-section 1 & 2 of the NDIC Act 2023.

“The corporation has also commenced the liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank depositors.”

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He explained the payment options to various categories of the bank’s depositors.

“Depositors of the bank that have alternate accounts within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account.

“While depositors with funds in excess of N5 million will be paid liquidation dividend upon realisation of the bank’s assets and recovery of debts owed to the bank,” he said.

Nuhu advised all depositors of the defunct bank without alternate bank accounts in the industry to visit the nearest branch of the bank with proof of account ownership, and verifiable means of identification.

He listed the required documents to include a driver’s license, permanent voter’s card, National Identity Card, together with an alternate account and BVN for the verification of deposits and subsequent payment of insured sums.

He added that depositors could also file online claims by visiting the NDIC website claims page on www.ndic.gov.ng/claims/claims, download and fill the claims forms and upload the required documentation.

He advised creditors to visit the nearest branch of the bank to file their claims or via the online platform.

“Please note that the process of payment of creditors will commence immediately after all depositors have been paid,” Nuhu said.

He advised debtors who had not completed repayment of loans to contact the Corporation’s Asset Management Department (AMD).

“Visit the NDIC website for more details. The NDIC wishes to assure the entire banking public of its commitment to the continued safety of depositors’ funds in all licensed banks.

“As such, depositors are urged to continue their banking businesses without fear as banks whose licenses have not been revoked remain safe and sound,” he said.

Source: NAN

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