The Nigeria Deposit Insurance Corporation (NDIC) has reassured customers of the failed Heritage Bank that their funds are safe. Speaking at the 2024 NDIC Editors Forum in Lagos, the NDIC Managing Director, Bello Hassan, represented by Mustapha Ibrahim, emphasized the Corporation’s role in safeguarding depositors. Following the Central Bank of Nigeria’s revocation of Heritage Bank’s license on June 3, 2024, NDIC initiated the payment of insured deposits of up to ₦5 million per depositor within four days using Bank Verification Numbers to streamline the process. This swift action aligns with global best practices and has minimized the financial impact on depositors.
The NDIC noted that it has reimbursed most insured depositors and is now focused on settling uninsured deposits exceeding ₦5 million. To achieve this, the Corporation is working to recover debts and liquidate the assets of the defunct bank. This effort aims to provide liquidation dividends for depositors whose funds exceeded the insured limit. NDIC has increased deposit insurance coverage from ₦500,000 to ₦5 million, a move that underscores its commitment to financial stability and depositor protection in Nigeria.
The NDIC also addressed creditors of Heritage Bank, assuring them that their claims will be honored once depositors have been fully reimbursed. Additionally, a workshop on strengthening Nigeria’s financial safety net highlighted the critical role of deposit insurance in preventing widespread economic fallout from bank failures. The NDIC remains committed to upholding trust and financial stability through its proactive measures.
