Why payments for customers with deposits above N5m are being delayed — NDIC
…Assures depositors of payment amid ongoing asset recovery efforts
By Sodiq Adelakun
The Nigeria Deposit Insurance Corporation (NDIC) has assured depositors of the defunct Heritage Bank that challenges delaying access to guaranteed sums above the N5 million limit are being swiftly addressed.
NDIC Managing Director, Mr. Bello Hassan, provided this update on Saturday during the 2024 edition of the NDIC Editors Forum in Lagos, reassuring concerned stakeholders that the corporation is actively working to resolve outstanding issues.
Hassan, represented by NDIC’s Executive Director of Operations, Mr. Mustapha Ibrahim, outlined the steps being taken to facilitate payments, particularly to depositors whose funds exceed the insured limit.
He explained that while the corporation has successfully reimbursed insured amounts, depositors of higher sums are being compensated through liquidation dividends sourced from the recovery of assets and debts from the defunct bank.
“The corporation has initiated the process of debt recovery and realisation of investments, as well as physical assets, to ensure timely payment of uninsured deposits,” Hassan said, emphasising the corporation’s commitment to ensuring all depositors are fully reimbursed.
Hassan further clarified that creditors of Heritage Bank would also receive their due payments, but only after all depositors had been fully settled.
He emphasised that this process is grounded in asset realisation and prioritisation of claims, which is vital to maintaining public trust in the country’s banking system.
The NDIC’s responsibilities extend beyond the liquidation of failed banks, with a core focus on safeguarding depositors, particularly those who may not fully understand the complexities of the banking system.
Hassan reiterated that the corporation’s mandate is crucial to mitigating risks in the financial sector and upholding financial system stability.
Addressing inquiries on the status of Fortune Bank, which was liquidated over a decade ago, Hassan acknowledged that the absence of Bank Verification Numbers (BVN) at the time had made compiling depositor data more challenging.
However, he assured the public that the process of reimbursing depositors was ongoing, with insured deposits already paid and efforts underway to compensate uninsured portions and other claimants.
“We’ve already paid the insured portion and are now paying the uninsured portion and other claimants,” Hassan confirmed, highlighting the NDIC’s ongoing efforts to complete payments in a timely manner.
The NDIC chief also expressed the corporation’s dedication to raising awareness and encouraging more depositors to come forward to claim their funds.
He commended the media for its role in fostering public understanding and reinforcing the success of the deposit insurance system.
The event, which brought together key players in the media industry, also saw praise for NDIC’s effectiveness in securing public confidence in the banking sector.
Malam Ali Muhammad Ali, Managing Director of Newsmen, described the forum as an “eye-opener” for editors, enhancing their knowledge of global financial trends and the health of the Nigerian economy.
Ali also acknowledged the NDIC’s role in securing 98 to 99 percent of depositors’ funds, reinforcing public confidence in the banking system amid ongoing turbulence in the financial sector.
In the same vein, President of the Nigeria Guild of Editors, Mr. Eze Anaba, emphasised the forum’s importance, noting that it provided reassurance about the stability of the Nigerian banking sector despite the challenging economic climate.
“It is reassuring to know our banking sector remains stable despite the challenging economic situation,” Anaba said, reflecting the general sentiment of confidence expressed by media stakeholders during the event.
