Ben Ezechime, Enugu
The Nigeria Deposit Insurance Corporation (NDIC), has reassured depositors of liquidated Banks in the country of the safety of their savings.
The Managing Director/CEO of the corporation, Mr Bello Hassan, gave the assurance in Enugu on the NDIC Special Day at the ongoing 36th Enugu International Trade Fair.
Bello, who was represented by Mrs Pamela Roberts, Controller, Enugu Zonal Office, commended the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), for sustaining the annual event.
He said that this year’s theme, “Developing Nigeria’s Industrial Sector/SMEs for Economic Advancement and Global Recognition ” was apt and timely.
He said that the NDIC was committed to ensuring a stable financial environment that safeguards depositors and builds public confidence, enabling businesses to thrive and contribute to the nation’s economic development.
“For over three decades, the NDIC has played a vital role in safeguarding depositors and fortifying the financial system.
“Our primary mandate includes insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process in the event of bank failures.
“We are dedicated to protecting bank deposits from the adverse effects of bank failures,” he said.
Bello said that in collaboration with the Central Bank of Nigeria (CBN), the NDIC strives to maintain stability in the banking sector by enforcing compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions.
“Our mission, embodied in the tagline “Protecting your bank deposits,” is to promote financial inclusion and stability by reassuring Nigerians of the safety of their savings,” he said.
According to him, the NDIC had consistently played a crucial role in maintaining financial stability by ensuring depositors receive prompt compensation when banks fail.
“A recent example is the revocation of Heritage Bank’s operating license by the Central Bank of Nigeria (CBN) on June 3, 2024.
“In line with its statutory mandate, the Corporation immediately began the liquidation process, including verification and payment of insured deposits of up to a maximum of ₦5 million per depositor within four days,” Bello said.
He added that the action had enabled the payment of insured amounts to the majority of the bank’s depositors using their Bank Verification Numbers (BVN) as a unique identifier to locate their alternate accounts for payment.
The NDIC boss said that those yet to be paid were largely depositors without BVNs or alternate accounts in other banks, or those with post-no-debit (PND) restrictions.
“Some accounts also have KYC issues, such as Tier 1 limits or name mismatches, while a few depositors may be unaware that payments have been made due to lack of transaction alerts on the alternate accounts.
“These categories are being contacted by the Corporation for verification and resolution,” he said.
He also said that in accordance with it’s statutory mandate, the NDIC as a liquidator, is responsible for winding down the affairs of the failed bank, “reimbursing insured depositors, recovering debts owed to the bank, and realising its assets for the payment of depositors and other claimants.”
According to him, the Corporation had made substantial progress in disposing of the defunct Heritage Bank’s physical assets and recovering some of its debts.
“In line with our commitment to ensuring that all depositors recover their funds as soon as possible, we have commenced preparations to pay the first tranche of liquidation dividends this month – April, 2025.
“I wish to reassure all depositors that the NDIC has the financial and operational capacity to fully reimburse all depositors as recoveries are made.
“The approach of paying insured deposits while concurrently realising assets and recovering loans ensures that no depositor is left behind.
“As more recoveries are made, subsequent tranches of liquidation dividends will follow. Our record in bank liquidation is reassuring,” Bello said.
He urged depositors of closed banks, particularly Heritage Bank, who have not yet received their payments, to visit any of NDIC zonal offices and provide the necessary documentation supporting ownership of the account, including BVN, and an alternate bank account number for payment of the insured sum.
