The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to reimbursing depositors with balances exceeding the N5 million insurance limit through liquidation dividends. This announcement was made by the NDIC Managing Director and Chief Executive, Mr. Bello Hassan, during the corporation’s special day at the ongoing 45th Kano International Trade Fair.
Highlighting NDIC’s pivotal role in financial system stability, Mr. Hassan noted the corporation’s swift response to the revocation of Heritage Bank’s operating license on June 3, 2024. Within four days of the bank’s closure, the NDIC began reimbursing insured deposits up to N5 million per depositor. The process leveraged Bank Verification Numbers (BVN) to identify depositors’ alternate accounts in other banks, eliminating the need for forms or office visits.
“While the majority of insured deposits have been reimbursed, we are actively working to ensure depositors with balances exceeding N5 million receive their remaining funds through liquidation dividends,” Mr. Hassan stated. He added that these uninsured deposits represent a significant portion of Heritage Bank’s total deposits.
Efforts are underway to recover the defunct bank’s assets and debts, which will fund payments to uninsured depositors and creditors. “Creditors will be compensated only after all depositors have been fully reimbursed. This systematic approach ensures transparency and maintains trust in the banking system,” he said.
As part of its asset recovery process, the NDIC launched a nationwide public auction of Heritage Bank’s landed properties and chattels on December 4, 2024. Mr. Hassan assured that the sales would adhere to public procurement guidelines to ensure fairness, transparency, and accountability.
The NDIC also reiterated its broader mandate to protect depositors against the adverse effects of bank failures, fostering trust and preventing potential bank runs. “As a key component of the financial safety net, the NDIC plays a vital role in ensuring depositors feel secure about the safety of their funds, even during periods of uncertainty,” Mr. Hassan explained.
He encouraged depositors of Heritage Bank and other closed institutions who have not yet claimed their funds to come forward with their BVN, proof of account ownership, valid identification, and alternative account details. Claims can be submitted through NDIC’s website, email, and social media platforms.
“The NDIC remains steadfast in its mission to protect depositors, promote stability in the financial system, and ensure the orderly resolution of failed banks,” Mr. Hassan concluded.
