NDIC issues important notice to Heritage Bank depositors

The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to resolving challenges delaying access to guaranteed sums exceeding N5 million for depositors of the defunct Heritage Bank.

NDIC Managing Director, Alhaji Bello Hassan, provided the reassurance on Saturday during the 2024 edition of the NDIC Editors Forum held in Lagos.

Represented by NDIC’s Executive Director, Operations, Mr. Mustapha Ibrahim, Hassan stated that the corporation is diligently facilitating payments through asset recovery and debt realization efforts.

Hassan noted that depositors with amounts beyond the insured limit of N5 million are being reimbursed via liquidation dividends derived from the recovery of assets and debts.

“The corporation has initiated the process of debt recovery and realisation of investments as well as physical assets of the defunct bank to ensure timely payment of uninsured deposits,” Hassan explained.

He added that NDIC’s responsibilities extend to creditors, who will receive payments after depositors have been fully reimbursed. He emphasized the importance of an orderly process for maintaining public trust in the banking system and ensuring financial stability.

The conference, themed “Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance”, aligns with NDIC’s mandate to safeguard depositors, particularly the uninformed, and promote financial system stability.

Established over three decades ago, the NDIC has consistently worked to protect depositors’ funds while mitigating risks in Nigeria’s banking sector.

Updates on Defunct Fortune Bank

Addressing inquiries about Fortune Bank, liquidated over a decade ago, Hassan highlighted the absence of Bank Verification Numbers (BVNs) during its operations as a challenge in collating depositor data.

Despite initial delays due to litigation, Hassan assured that payments for insured deposits have commenced, with ongoing efforts to settle uninsured claims and other liabilities.

“We’ve already paid the insured portion and are now paying the uninsured portion and other claimants,” he stated, urging more depositors to come forward to claim their funds.

Hassan commended the media for its critical role in implementing the deposit insurance system and raising awareness about NDIC’s activities.

The Managing Director of NAN, Malam Ali Muhammad Ali, described the forum as an “eye-opener” that enhances editors’ understanding of global financial trends. He praised NDIC’s ability to safeguard 98–99% of depositors’ funds, reinforcing public confidence in Nigeria’s banking sector.

President of the Nigerian Guild of Editors, Mr. Eze Anaba, also lauded NDIC’s efforts, stating, “It is reassuring to know our banking sector remains stable despite the challenging economic situation.”