- Nigeria Deposit Insurance Corporation said depositors’ funds in failed banks are safe
- Citing Heritage Bank, it said depositors were reimbursed within four days
- The NDIC assured creditors of reimbursements after payments to depositors
The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, reiterates that depositors’ funds in failed banks are safe.
Hassan stated this during the NDIC’s Special Day at the 46th Kaduna International Trade Fair on Thursday, February 20.
The NDIC MD, represented at the event by the Area Controller, Kano Zonal Office, Ahmed Umar, highlighted the corporation’s role in safeguarding bank customers, particularly the most vulnerable, over the last three decades.
He said the NDIC’s core responsibilities include insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring seamless resolution in the event of bank failures.
“For over three decades, the NDIC has played a critical role in protecting depositors and strengthening the financial system,” Hassan said.
The Heritage Bank example
Referring to Heritage Bank’s operating licence revocation by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC boss said it reimbursed depositors within four days in its capacity as the bank’s liquidator.
He said, “Within four days, NDIC reimbursed depositors using their Bank Verification Numbers (BVN). We pay up to N5 million per depositor per bank from our deposit insurance funds.”
Creditors to be reimbursed after depositors
Hassan further assured creditors of defunct banks, especially Heritage Bank, would be reimbursed once all depositors had been settled.
He stressed that the NDIC’s systematic approach prioritises asset recovery and financial stability.
Hassan called on depositors of Heritage Bank who have not received payments to come forward with the necessary documentation for prompt payment.
Also, Hassan said the agency is committed to compensating depositors with balances exceeding N5 million upon realisation of the defunct bank’s assets.
“NDIC remains committed to ensuring that creditors of the defunct bank receive payments once all depositors have been fully reimbursed.
“I urge depositors of closed banks, particularly Heritage Bank, who have not yet received their payments to come forward and provide the necessary documentation supporting ownership of their account.
“You can submit your claims through our website, email, or social media platforms. We remain dedicated to safeguarding depositors’ funds and ensuring their timely reimbursement.”
NDIC’s efforts to realise defunct bank’s debts
The NDIC boss noted that as a liquidator, it has made progress in realising the assets of Heritage Bank and recovering outstanding debts to facilitate timely reimbursement of uninsured deposits and creditors.
He said the corporation has auctioned the failed bank’s landed properties and chattels in line with its statutory mandate under Section 62(1)(d) of the NDIC Act 2023.
“The proceeds from these ongoing sales will be applied towards settling depositors with balances above the insured limit of N5 million,” he stated.
Heritage Bank: What happens to depositors’ funds when a bank’s licence is revoked? (Explainer)
Meanwhile, TheRadar earlier reported that Nigerians woke up on Monday, June 3, to the news of the revocation of the operating licence of Heritage Bank by the CBN to ensure public confidence in the financial system as the bank’s non-performance is a threat to financial stability.
Following this, TheRadar explained what becomes of depositors’ and shareholders’ funds in the event of a revocation of a bank’s licence.
