Heritage Bank: NDIC working to pay depositors fund exceeding N5m

COMFORT EKELEME, Business Editor

 

The Nigeria Deposit Insurance Corporation (NDIC) said it is working assiduously to ensure that depositors of Heritage Bank with amounts in excess of the maximum insured amount of N5 million are paid.

 

The depositors, NDIC said would be paid through liquidation dividends from the realisation of the defunct bank’s assets and recovery of debts.

 

This is even the Corporation, again affirmed its commitment to ensuring financial stability in Nigeria through deposit insurance.

 

Managing Director/ Chief Executive of NDIC, Bello Hassan disclosed this Thursday in Lagos at the 2024 workshop for Financial Correspondents Association of Nigeria (FICAN), themed “Strengthening Nigeria’s Financial Safety-Net: The Role of NDIC”.

 

He said that the Corporation had also commenced debt recovery to ensure the payment.

 

“We are making a concerted effort to cover the assets in terms of physical assets and debts in liquidation dividends which have already commenced,” he said.

 

On payment of insured deposits to depositors of the defunct bank, the NDIC boss maintained that the Corporation had paid substantially all insured depositors.

 

According to him,  the only group of insured depositors that have not been paid are those with no alternate account and have not come forward to provide the alternate account so that we can pay them.

 

Speaking further, Hassan said that insured depositors whose account is on post no debit order either by order of a court or by regulatory agencies due to issues around fraud and Know-Your-Customer (KYC) have not been paid.

 

“Once those orders are vacated, we are going to pay them,” he said.

 

The NDIC boss, however, assured that the Corporation would continue to do all within its mandate to ensure stability in the financial system.

 

He said that confidence was key in maintaining stability in the financial system, affirming NDIC’s unwavering mission to protect depositors and collaborate with the Central Bank of Nigeria (CBN) to ensure banking sector stability.

 

“Confidence in the banking system is crucial, as it is key to maintaining financial system stability,” Hassan said.

 

He said, the recent closure of Heritage Bank, whose license was revoked by the CBN in June 2024, exemplifies NDIC’s effective response.

 

Also, he noted that the NDIC’s responsibilities extend to creditors of the defunct bank, who will receive payments after all depositors have been fully reimbursed.

 

Hassan however,  acknowledged the vital role of the media, civil society groups, and corporate affairs managers of banks in advocating for the deposit insurance system.

 

For a better society

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