In the wake of Heritage Bank’s closure, the Nigeria Deposit Insurance Corporation (NDIC) has assured depositors that their funds remain secure, emphasizing swift reimbursement efforts. This announcement was made during the 2024 NDIC Editors Forum held in Lagos on Saturday.
The Managing Director/Chief Executive Officer of NDIC, Bello Hassan, represented by the Executive Director of Operations, Mustapha Ibrahim, highlighted the corporation’s proactive measures following the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank’s license on June 3, 2024.
“The NDIC was appointed liquidator to manage the orderly resolution of the bank and oversee the payment of its depositors and other claimants,” Ibrahim said. He noted that the corporation initiated payouts to insured depositors within just four days of the bank’s closure, leveraging Bank Verification Numbers (BVN) to streamline the process without requiring depositors to fill out forms or visit NDIC offices.
Increased Coverage Eases Impact on Customers
The NDIC raised its deposit insurance coverage from ₦500,000 to ₦5 million, significantly reducing the financial burden on depositors. According to Ibrahim, most BVN-linked depositors have already received their payments. He reaffirmed the NDIC’s commitment to reimbursing those with uninsured deposits—amounts exceeding ₦5 million—through liquidation dividends, derived from the recovery of debts and sale of the defunct bank’s assets.
“The corporation is working assiduously to ensure timely payment to the uninsured depositors,” he stated, adding that creditors of the failed bank will also be compensated once all depositors are fully reimbursed.
Focus on Financial Safety
Speaking at the forum 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 deposit insurance in maintaining trust within Nigeria’s financial system.
The NDIC reiterated its commitment to safeguarding depositor funds, ensuring minimal disruption to affected customers, and reinforcing the nation’s financial safety net.