The Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has assured customers of the recently closed Heritage Bank that their funds are secure.
Speaking at the 2024 NDIC Editors Forum held in Lagos on Saturday, Hassan, represented by the Executive Director of Operations, Mustapha Ibrahim, highlighted the Corporation’s commitment to safeguarding depositors.
Ibrahim explained that the Central Bank of Nigeria (CBN) revoked the license of Heritage Bank on June 3, 2024, and appointed the NDIC as liquidator to oversee the resolution of the bank and facilitate payments to depositors and other claimants.
He described the swift measures taken by the Corporation, noting, “In the discharge of this critical role, the Corporation began paying insured deposits of up to N5 million per depositor within four days of the bank’s closure.”
He emphasized that payments were facilitated using Bank Verification Numbers to locate depositors’ alternate accounts in other banks, thereby eliminating the need for form submissions or physical visits.
Ibrahim also referenced the Corporation’s recent increase in deposit insurance coverage from N500,000 to N5 million for Deposit Money Banks, which significantly reduced the negative impact of the bank’s failure on affected depositors.
He noted that this approach aligns with the International Association of Deposit Insurers Core Principle 15, which emphasizes timely payouts to depositors of failed banks.
For depositors with balances exceeding N5 million, Ibrahim stated that the NDIC is working diligently to ensure these funds are reimbursed through liquidation dividends from the realisation of Heritage Bank’s assets and debt recovery.
He explained that uninsured deposits represent a substantial portion of the bank’s total deposits and assured that the Corporation has initiated efforts to recover debts and liquidate investments and physical assets to facilitate payments to these depositors.
He also reassured creditors of the defunct bank that they would receive payments after all depositors have been fully reimbursed.
Also speaking at the forum, NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, explained that the workshop, themed “Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance,” provided a platform for participants to better understand the Corporation’s role in maintaining stability in the country’s financial sector.
