As part of continuing attempts to reimburse depositors after the bank’s liquidation, the Nigeria Deposit Insurance Corporation (NDIC) has stated that it has completed a nationwide assets appraisal of the now-defunct Heritage Bank.
Bello Hassan, NDIC’s managing director and CEO, announced this during the organization’s special day at the Lagos International Trade Fair. Nuhu Bashir Alhassan, director of public affairs and communication, accompanied him.
Bello Hassan underlined the NDIC’s dedication to preserving the banking industry’s stability, particularly in the event of a bank failure.
“The NDIC has played a significant role in fostering stability over the years by guaranteeing that depositors receive prompt compensation in the event of a bank failure,” he stated.
Hassan noted that 86 percent of Heritage Bank’s depositors have already received payouts, underscoring the NDIC’s crucial involvement in the Central Bank of Nigeria’s (CBN) recent suspension of the bank’s license on June 3, 2024.
Within four days following the closure, insured sums may be directly credited into depositors’ alternative bank accounts, thanks to the NDIC’s use of the Bank Verification Number (BVN) as a unique identification to speed up these payments.
“This method made it easier to quickly distribute insured guaranteed amounts to depositors,” Hassan said.
The NDIC recently increased the deposit insurance coverage for depositors of Deposit Money Banks from N500,000 to N5 million, he added, therefore this procedure is in line with recent regulatory changes.
Hassan claims that the enhanced coverage has significantly lessened the harm that bank failure has caused to impacted depositors.
Although the NDIC focuses on guaranteed deposits, the organization is also trying to reimburse depositors whose balances exceed N5 million.
“We have already started the process of realizing the bank’s assets and recovering debts to enable the timely payment of liquidation dividends to uninsured depositors,” Hassan clarified.
He reminded depositors that the NDIC is dedicated to a comprehensive and equitable compensation process to guarantee that larger depositors receive a portion of the recovered funds.
Hassan also discussed the NDIC’s obligation to Heritage Bank’s creditors and depositors. He stated that payment to creditors would not be made until all depositors had been paid in full.
He highlighted NDIC’s commitment to a systematic and open procedure by saying, “This orderly process, based on asset realisation and prioritisation of claims, is essential in maintaining public confidence in the financial landscape.”
Hassan encourages depositors who have not yet received their insured funds to come forward. “Any remaining depositors are encouraged to come forward with their BVN, identification, proof of account ownership, and alternative account details,” he said.
He noted several ways to make claims, such as via the NDIC website, email, and social media.
Hassan kindly invited the public to stop by NDIC’s booth at the trade show for more information. He thanked the media, distinguished visitors, royal dignitaries, and the president and executive members of the Lagos Chamber of Commerce for their attendance.
“I wish you all a fruitful trade fair and a safe journey back to your respective destinations,” he added, emphasizing the NDIC’s commitment to financial stability and public trust.
