- Equities market opens June negative as economic conditions drag ASI by 13bps
The Nigeria Deposit Insurance Corporation said it has commenced the liquidation of Heritage Bank Plc.
NDIC assured all that it would pay depositors of the failed bank N5 million insured deposits.
The corporation’s Director of Communication and Public Affairs, Bashir Nuhu in a statement on Monday, said the liquidation is in accordance with Section 55 Sub-sections 1 & 2 of the NDIC Act 2023.
The statement reads, “Following the revocation of the banking licence 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 commenced the liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank 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 dividends upon realisation of the bank’s assets and recovery of debts owed to the bank.”
Nuhu advised depositors without an alternate bank account in the industry to visit the nearest branch of the bank with proof of account ownership and verifiable means of identification.
“Verification and payment of depositors without alternate bank account: All depositors of the defunct bank without an alternate bank account in the industry are advised as follows:
“Visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s license, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums or file online claim 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.
“Verification and Payment of Creditors: Creditors are also advised 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. Debtors’ Repayment of Loans: Debtors who are yet to complete the repayment of loans are advised to contact the Corporation’s Asset Management Department (AMD). Visit the NDIC website for more details,” the statement added.
The corporation assured depositors of the safety of their funds, saying, “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.”
Earlier, the Central Bank of Nigeria revoked the banking licence of Heritage Bank with immediate effect.
The development followed the bank’s failure to improve its financial performance, posing a threat to financial stability.
CBN said the bank’s management has been unable to stem the decline despite various supervisory steps taken by the regulator. With no reasonable prospects of recovery, the CBN has taken this action to protect the financial system and maintain public confidence.
The NDIC oversees banks to protect depositors, ensure monetary stability, promote an efficient payment system and encourage competition and innovation in the banking sector.
Equities market opens June negative as economic conditions drag ASI by 13bps
With June opening negative as economic conditions kink on the ASI by 13bps, the local equities market encountered significant suppression upon the commencement of the trading session on Monday, marked by a closing at 99,173.87 points.
This negative outcome had a substantial impact on trading activity, with the total number of deals, volume, and value plummeting by 5.20 percent, 19.45 percent, and 38.92 percent, respectively, totaling 8,082 trades, 349.59 million units, and N5.24 billion.
Consequently, market capitalization decreased by 0.13 percent to N56.10 trillion, resulting in a loss of N71.43 billion for investors.
The top losers for the day were ETRANZACT, UNITYBANK, JAIZBANK, MCNICHOLS, and JAPAULGOLD, with their share prices falling by 9.82 percent, 9.80 percent, 9.65 percent, 9.09 percent, and 4.78 percent, respectively.
Sector performance was similarly affected, with notable declines across the board.
The Insurance sector was the sole gainer, with a 2.79 percent increase, while the Oil/Gas sector remained flat.
The Banking, Consumer Goods, and Industrial Goods sectors saw declines of 0.84 percent, 0.06 percent, and 0.09 percent, respectively.
As the session concluded, VERITASKAP emerged as the most traded security by volume, with 57.95 million units transacted in 83 trades. GTCO led in terms of traded value, amounting to N1.89 billion.
In the money market, NIBOR rates surged across all maturity gauges, indicating increased illiquidity pressure in the financial system.
Key money market rates such as the Open Repo Rate (OPR) and Overnight Lending Rate (OVN) concluded at 29.18 percent and 29.82 percent, respectively. Rates in the NITTY space closed with mixed results.
Meanwhile, the secondary market for Nigerian Treasury Bills closed bullish, as the average yield declined by 0.03 percent to 20.09 percent.
In the secondary market for FGN Bonds, the average yield stayed muted at 18.69 percent, despite yield expansions of 0.06 percent and 0.03 percent observed in the MAR-25 and JAN-26 FGN bonds.
The sovereign Eurobonds market displayed a bullish trend, thus resulting in a decline in the average yield by 0.10 percent to 9.76 percent.
In the foreign exchange market, the Naira appreciated by 0.66 percent in the official NAFEM market, trading at ₦1,476.12 per dollar. The parallel market saw the Naira weaken by 1.05 percent, ending at N1, 445 per dollar.
