The Nigeria Deposit Insurance Corporation (NDIC) has announced that it is actively working to ensure prompt compensation for depositors of the defunct Heritage Bank, specifically those whose account balances surpass the N5 million insurance cap.

Following the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank’s operating license on June 3, 2024, the NDIC was designated as the liquidator in accordance with the provisions of Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020, alongside Sections 55(1 & 2) of the NDIC Act 2023.

In a recent update regarding the payment of uninsured amounts to Heritage Bank depositors (currently in liquidation), the corporation indicated that it has commenced the liquidation process, which includes verifying and reimbursing insured deposits to all depositors.

The NDIC reported significant advancements in the reimbursement of insured deposits up to the N5 million maximum per depositor. This clarification addresses concerns raised by depositors regarding the payment process.

According to the NDIC management, the depositors who have yet to receive their insured amounts mostly lack a Bank Verification Number (BVN) or do not have alternative accounts in other banks, which would enable the corporation to retrieve their information from the Nigeria Inter-Bank Settlement System (NIBSS) database for payment processing. Additionally, some accounts are subject to post no debit (PND) restrictions, while others face Know Your Customer (KYC) limitations, including Tier 1 accounts that restrict the maximum deposit amount, and issues with name discrepancies that need resolution.

Furthermore, some depositors who have received payments may not be aware due to the absence of mobile transaction alerts on their alternate accounts where the insured funds were deposited by the NDIC. The corporation advises these depositors to review their other bank accounts, as some payments may have been processed without their immediate knowledge.

Regarding the initiation of payments for uninsured depositors, the NDIC confirmed that while depositors with balances exceeding N5 million have received the initial insured amounts, the remaining balance above the N5 million insurance limit will be disbursed as liquidation dividends in line with the corporation’s statutory obligations.

The statement highlighted that the corporation has made significant progress in liquidating physical assets and recovering debts from the failed bank to expedite payments to depositors with balances above the insured threshold.

The NDIC emphasized, “To showcase our commitment, the corporation has initiated the liquidation of physical assets and investments while concurrently pursuing aggressive debt recovery, alongside the verification and payment of insured sums.”

“To ensure transparency and adherence to legal standards, the NDIC has extensively publicized the asset disposal process on its official website, social media channels, major national newspapers, and through radio and television broadcasts.”

The corporation’s strategy of simultaneously compensating insured depositors while aggressively pursuing asset liquidation and debt recovery aims to hasten the liquidation process, ensuring all depositors receive their funds without unnecessary delays.

The NDIC further stated, “With significant progress in asset realization, we plan to announce the first tranche of liquidation dividends in April 2025, which will be allocated to uninsured depositors on a pro-rata basis, in accordance with Section 72 of the NDIC Act 2023 addressing the priority of claims.”

For clarity, this section specifies: “In the event that an insured institution is unable to fulfill its obligations or suspends payments, or if its management is taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be utilized to meet its deposit liabilities, which take precedence over all other liabilities.”

Therefore, other claimants of the defunct Heritage Bank, including creditors and shareholders, will only be considered for liquidation dividends after all depositors have been fully reimbursed.

The NDIC reiterated its commitment to safeguarding depositors’ funds in all licensed banks, urging the public to engage in banking activities without apprehension, as all other banks remain stable and secure.

Affected depositors with further inquiries are encouraged to reach out to the Claims Resolution Department of the NDIC for additional clarification.

German Chancellor Olaf Scholz expressed on Sunday that Europe seeks collaboration with the United States, while simultaneously asserting that the EU is ready to take unified action if Washington enforces tariffs on steel and aluminum.

During his address at the Hanover Industrial Trade Fair, which this year highlights Canada as its partner country, Scholz underscored Canada’s status as an independent nation.

This statement follows former US President Donald Trump’s remarks about the potential annexation of Canada, referring to it as the 51st state of the US.

“We stand alongside you. Canada is not a territory to be claimed by anyone else. It is a proud, sovereign nation,” he affirmed.

In response to Trump’s tariff proposals, the Chancellor articulated that his counter to “America First” policies is a call for enhanced free trade, increased competitiveness, and greater technological independence.

He emphasized that Europe is neither naive nor weak, asserting that trade conflicts are harmful to all parties involved.

“I convey this message to the United States: Europe’s objective remains cooperation. However, if the US forces our hand through tariffs on steel and aluminum, we, as the EU, will respond collectively,” he concluded.

Trump said “There are methods which you could do it,” when asked to clarify a remark on seeking another term.

Donald Trump on Sunday repeated his suggestion that he might seek a third term as US president, NBC News reported, which would defy the two-term limit stipulated in the US constitution.

In a Sunday-morning phone call with NBC News, Trump said “I’m not joking,” when asked to clarify a remark on seeking another term, adding: “There are methods which you could do it.”

The 78-year-old billionaire has a history of suggesting he might serve more than two terms, but Sunday’s remarks were the most concrete in terms of referring to plans to achieve the goal.

Trump has launched his second presidency with an unprecedented blitz of executive power, using the world’s richest man, Elon Musk, to dismantle swaths of the government, and said his supporters want even more.

“A lot of people want me to do it,” Trump told NBC News on Sunday. “But, I mean, I basically tell them we have a long way to go, you know, it’s very early in the administration.”

Amending the US constitution to allow a third presidential term would require a two-thirds majority in both the House and Senate, which Trump’s Republican Party does not have.

Trump said it was “far too early to think about it,” but told NBC he had been presented with plans that would allow him to seek reelection.

When NBC asked Trump of a possible scenario whereby Vice President JD Vance would run for president and then abdicate the role to Trump, the US president said “that’s one” method.

He added that “there are others,” but refused to share further details.

If Trump does not approach Congress for the constitutional amendment, he would need to get support from two-thirds of the country’s 50 states to call a constitutional convention that would propose changes to the charter.

Whether he goes through Congress or the states, he would then require ratification from three-quarters of all states.

Both routes appear to be unlikely, given the current number of states and Congressional seats under Republican control.

A constitutional convention has never been successfully called in the United States, where all 27 constitutional amendments have been passed by the congressional method.

In January, days after Trump took office, Republican Andy Ogles of Tennessee introduced a House joint resolution to amend the constitution to allow presidents up to three terms.

AFP