The Managing Director/Chief Executive Officer of Nigeria Deposit Insurance Corporation has affirmed the safety of funds for customers of the recently closed Heritage Bank. This reassurance was provided during the 2024 NDIC Editors Forum in Lagos. The NDIC’s critical role in safeguarding depositors was highlighted following the bank’s license revocation by the CBN. The NDIC was appointed as the liquidator to manage the resolution process and ensure the payment of depositors and other claimants.
In a swift response, the NDIC initiated the reimbursement process by promptly paying insured deposits of up to N5 million per depositor within four days of the bank’s closure. The use of Bank Verification Numbers facilitated the identification of depositors’ alternate accounts in other banks, streamlining the reimbursement without requiring additional paperwork or visits to NDIC offices.
The increased deposit insurance coverage from N500,000 to N5 million in Deposit Money Banks played a significant role in mitigating the impact of the bank’s closure on affected depositors. The Corporation’s commitment extends to reimbursing depositors with amounts exceeding the insured limit through liquidation dividends from the defunct bank’s assets and debt recoveries.
Efforts are underway to recover debts and assets of the defunct bank to facilitate the payment of uninsured deposits. The NDIC’s focus is on ensuring timely payments to all depositors, including creditors, once full reimbursement to depositors is completed. The NDIC reiterated its commitment to strengthening Nigeria’s financial safety-net through the deposit insurance system at the workshop, emphasizing the importance of deposit insurance in the financial sector.