In a recent interview in Abuja, Mr. Bello Hassan, the Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), discussed the corporation’s enhanced partnership with the judiciary to speed up the prosecution of failed financial institutions. He noted that this collaboration has successfully resolved a number of long-standing cases, allowing for the declaration of 100% liquidation dividends for uninsured depositors from over 20 closed banks.
During the NDIC Special Day at the 19th Abuja International Trade Fair, themed “Mobility: Options for Transport, Trade Finance, and Taxation,” Mr. Hassan, represented by Mrs. Hawwau Gambo, Deputy Director of Communication and Public Affairs, reaffirmed the NDIC’s steadfast commitment to protecting depositors’ funds.
He urged depositors from any closed banks, especially those connected to Heritage Bank who have yet to receive their payments, to come forward with their Bank Verification Number (BVN), proof of account ownership, identification, and details of alternative accounts. “Claims can be submitted through various channels, including our website, email, and social media platforms,” he emphasized, reiterating the NDIC’s dedication to ensuring the security of depositors’ funds.
Mr. Hassan highlighted the significant progress made in safeguarding depositor funds, pointing out a recent increase in maximum deposit insurance coverage that enhances protection for a variety of financial institutions. This increase ensures that 98.98% of all depositors in Deposit Money Banks (DMBs), 99.27% in Microfinance Banks (MFBs), 99.34% in Primary Mortgage Banks (PMBs), and an impressive 99.99% in Payment Service Banks (PSBs) are protected, showcasing NDIC’s commitment to fulfilling its mandate.
“While our main focus is on insured deposits, the NDIC is equally dedicated to compensating depositors with balances exceeding N5 million,” he explained. “These larger, uninsured deposits make up a significant portion of total deposits within Heritage Bank. We have already initiated the process of asset realization and debt recovery to ensure timely payments to uninsured depositors through liquidation dividends.”
Furthermore, Mr. Hassan mentioned that the NDIC also has responsibilities to the creditors of the defunct bank, who will receive payments after all depositors have been compensated. He stressed that this orderly process, which relies on asset realization and claims prioritization, is essential for maintaining public trust in the financial system and promoting stability.
