By Ayomide Otitoju
The Nigeria Deposit Insurance Corporation (NDIC) has assured customers of the defunct Heritage Bank that their funds are secure following the bank’s closure and the revocation of its license by the Central Bank of Nigeria (CBN) on June 3, 2024.
The Managing Director and CEO of NDIC, Bello Hassan, represented by Executive Director (Operations) Mustapha Ibrahim, reaffirmed the Corporation’s commitment to protecting depositors.
“The recent closure of Heritage Bank underscores NDIC’s pivotal role in safeguarding depositors. Acting under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023, the Corporation was appointed liquidator to ensure an orderly resolution and oversee the reimbursement of depositors and claimants,” he stated.
Prompt Payment of Insured Deposits
Highlighting the NDIC’s swift response, Hassan noted that payments of insured deposits, capped at ₦5 million per depositor, began within four days of the bank’s closure. This process leveraged the Bank Verification Number (BVN) system, enabling seamless payouts directly to depositors’ accounts without the need for physical forms or visits to NDIC offices.
“This innovative approach has facilitated payments to the majority of depositors with BVN-linked accounts,” he added.
The NDIC recently increased its deposit insurance coverage from ₦500,000 to ₦5 million for Deposit Money Banks, a move that significantly mitigated the impact of Heritage Bank’s failure on affected customers.
Plans for Uninsured Deposits and Asset Recovery
For depositors with balances exceeding the insured amount, the NDIC is actively working to pay the outstanding amounts through liquidation dividends derived from the sale of the bank’s assets and debt recovery.
“Efforts are already underway to recover debts and realise investments and physical assets of the defunct bank to facilitate timely payments to uninsured depositors,” Hassan explained.
The Corporation also assured that creditors of Heritage Bank will receive their dues after all depositors are fully reimbursed.
Stakeholder Engagement and Public Awareness
At a recent workshop themed ‘Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance’, NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, emphasized the importance of educating stakeholders about the Corporation’s mandate and its efforts to enhance financial stability in Nigeria.
The NDIC’s proactive measures in addressing the Heritage Bank closure underscore its commitment to protecting depositors and ensuring confidence in the Nigerian banking system.
