NDIC Pays 93% of Depositors from Liquidated Heritage Bank
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has successfully paid 93% of depositors from the now-defunct Heritage Bank PLC.
This was disclosed by the Managing Director/CEO, Bello Hassan, at a workshop organized by the corporation for the Financial Correspondents Association of Nigeria (FICAN) on Thursday in Lagos.
Mr. Hassan stated that the corporation has made substantial payments to the insured depositors of Heritage Bank. He explained that the few depositors who have not yet been paid are facing administrative constraints, such as irregular Bank Verification Numbers (BVN) and unavailable alternate accounts.
“The only group of insured depositors we have not paid are those without alternate accounts in other banks, and they have not come forward to provide these accounts for payment. Additionally, we have not paid depositors whose accounts are under post-no-debit orders, either by court order or regulatory agencies, due to issues related to fraud or Know Your Customer (KYC) compliance,” Hassan said.
He further reiterated that deposits exceeding N5 million will be disbursed once the asset verification and recovery processes of the defunct bank are finalized.
Hassan emphasized that handling the claims of Heritage Bank depositors demonstrates the NDIC’s crucial role in maintaining stability within Nigeria’s financial sector. He noted that the corporation is using innovative methods, such as leveraging BVNs to identify depositors’ accounts. This approach has allowed the NDIC to pay over 80% of BVN-linked accounts without requiring physical forms or office visits.
This swift action, coupled with the recent increase in the insured deposit coverage limit to N5 million, has helped to cushion the negative impacts of bank failures during challenging economic conditions. The NDIC remains committed to reimbursing all depositors, including those with balances above the insured limit, through ongoing asset liquidation and debt recovery efforts.
Mr. Hassan also expressed appreciation for the media’s efforts in consistently educating the public on financial matters, particularly regarding the NDIC’s critical role in safeguarding the financial system.
“The theme of this year’s workshop, Strengthening Nigeria’s Financial Safety Net: The Role of Deposit Insurers, is timely and highly relevant given the ever-evolving dynamics of the global financial system and their implications for Nigeria. Our financial system continues to face new challenges, and the NDIC remains dedicated to protecting depositors and working with the Central Bank of Nigeria to ensure the stability of the banking sector, which is vital to the growth and development of the economy,” Hassan concluded.
