The Nigeria Deposit Insurance Corporation (NDIC) said it has commenced the process of recovering loans granted by the defunct Heritage Bank as well as the disposal of its assets to enable it pay the uninsured part of deposits and settle its liabilities.
This is as the Corporation also took financial literacy sensitisation to secondary school students in Gombe, Sokoto among other states in commemoration of World Savings Day 2024.
Having paid most of the insured deposits months ago, the corporation said it had begun discussions with the debtors of the bank so as to recover the loans granted them.
Speaking on the sidelines of the NDIC Special Day at the ongoing Lagos International Trade Fair, Director Corporate Communications of the NDIC, Basir Nuhu, who represented the managing director, Bello Hassan, said some of the debtors have been given timelines on repayment of their loans.
He noted that following the revocation of Heritage Bank’s operating licence by the central bank on June 3rd, 2024, the NDIC had within four days reimbursed insured deposits using the Bank Verification Number (BVN) as a unique identifier, paying the depositors directly into their alternate bank accounts without filling forms.
“This approach facilitated the payment of insured guaranteed sums to about 86 per cent of depositors thus far. Additionally, this came at a time when the deposit insurance coverage to depositors of Deposit Money Banks was recently increased from N500,000 to N5 million which significantly cushioned the negative effects of bank failure.
“While our immediate focus remains on insured deposits, the NDIC is also committed to ensuring that depositors with balances exceeding NS million are compensated. In this regard, the Corporation has already initiated the process of realising the bank’s assets and recovery of debts owed to ensure the timely payment of the uninsured depositors by way of liquidation dividends.”
Furthermore, he said the NDIC’s responsibilities extend to the creditors of the defunct bank, who will receive payments once all depositors have been reimbursed. “This orderly process, based on asset realisation and prioritisation of claims, is essential in maintaining public confidence in the financial landscape.”
He revealed that the assets of the bank are already been assessed for valuation and the corporation is in discussion with debtors on the terms of their loans the repayment plan and timeline
Meanwhile he said some of the bank’s depositors are yet to be paid their insured deposits as they are yet to link thier accounts with their BVN. Nuhu further encouraged depositors of Heritage Bank, who are yet to receive their payments, to “come forward with their BVN, proof of account ownership, identification, and alternative account details. Claims can be submitted through various channels, including our website, email, and social media platforms.”
Meanwhile, in Gombe, the NDIC sensitised students of Government Day Secondary School Gandu, in Gombe, Gombe State on savings and financial management.
Speaking during the opening ceremony of the event, the NDIC zonal comptroller in charge of Gombe, Bauchi and Plateau States, Ajiya Bazarma, emphasised the importance of savings and investments asserting that if the students imbibe them, they could be entrepreneurs and contribute to national economy.
Bazarma also stressed that inculcating a savings culture in young people fosters financial literacy, discipline, and stability adding that savings enable individuals to invest, manage money, and become self-reliant by starting businesses.
“By the time you inculcate the habit of saving in students, they will grow up with financial literacy. And they will have knowledge on how to invest and manage money,” he said.
He reiterated NDIC’s commitment to ensuring people’s savings and deposits in banks are safeguarded.
In his remarks, the principal of the school, Usman Buba, appreciated NDIC’s sensitisation lecture in the school saying it would instil financial discipline in students.
The state commissioner of education, Aisha Maigari, represented by director extracurricular activities, Isa Ali Doho, said the ministry prioritises extracurricular programmes like seminars, sensitisation and training for students.
He lauded the NDIC’s initiative and advised students to open accounts in banks and embrace saving culture.
IN Sokoto, the NDIC restated its commitment to driving financial literacy to the young generation in the country.
In a training organised by the corporation for secondary school students in Sokoto State on financial literacy, the corporation disclosed that the training was meant to make the students embrace a saving attitude.
The 2024 training, which was attended by hundreds of students, drawn from three secondary schools in the state, was in commemoration of the 2024 Financial Literacy Day, with its theme, “ACT FOR HUMANITY” WORLD SAVINGS DAY.
Addressing the students of Government Girls Secondary School, Sokoto, Government Girls Secondary, Rabah and Government Girls Unity Secondary School, Bodinga on Wednesday, the Zonal Controller of NDIC in the state, Bello Usman Kaoje said the programme was part of the organisation’s Corporate Social Responsibility.
According to him, the intention of NDIC was to use the financial literacy training programme to ensure that students of secondary schools in the country get information on how to generate, save and spend their monies.
Kaoje-Bello said, “NDIC had been mentoring secondary school students on the benefits of efficient savings and money management.
“The aim was to encourage financial prudence and management as well as encourage savings and proper budgeting habits among students.
“It was also to accelerate investment growth in the nation’s economy through financial literacy, resource management, budgeting, and saving culture.”
Kaoje-Bello also urged them to be wary of financial frauds, which mostly occur through online banking, Point-of-Service operators, and others, due to greed and eagerness to obtain cheap proceeds.
In his remarks, the branch controller of Central Bank of Nigeria, Sokoto, AG Bello, said commercial banks and microfinance institutions were available in the country with strict regulations on safeguarding deposits and financial transactions.
A deputy commander with the National Drugs Law Enforcement Agency, Sokoto state command, Aliyu Omama, cautioned students on the dangers of drug abuse and related transactions.
The principal, Government Girls Unity Secondary School, Bodinga, Hajiya Aisha Ibrahim Gusau, in her address described the event as beneficial and urged the students to take advantage of the event to change their attitude toward saving money.
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