The Nigeria Deposit Insurance Corporation (NDIC) has announced the payment of N54.62 billion to 691,418 depositors of the defunct Heritage Bank, less than a year after the financial institution was closed.
The NDIC also disclosed it had declared a liquidation dividend of 9.2 kobo per Naira for uninsured depositors of the bank.
This was revealed by the new managing director and chief executive officer of NDIC, Thompson Sunday, during a courtesy visit to governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, at the CBN headquarters in Abuja on Wednesday.
Sunday called on the CBN to consider the development of a joint crisis preparedness framework to boost crisis management and financial system resilience.
The visit marked the first official interaction between the new NDIC leadership and the CBN, signifying a renewed commitment to collaboration in ensuring the stability of Nigeria’s financial system.
Sunday, who led the NDIC delegation to the meeting, stated that the corporation remained committed to its mandate of protecting depositors and promoting public confidence in the banking system.
He praised the CBN’s reforms under Governor Cardoso’s leadership, particularly the stabilisation of the foreign exchange market and the ongoing recapitalisation of Deposit Money Banks.
He further revealed that the NDIC was undergoing a strategic restructuring aligned with the new NDIC Act 2023, and was in the process of developing a fresh corporate strategy to replace the current one due to expire by year-end.
“The NDIC is determined to deepen its collaboration with the CBN in all areas of mutual concern. We particularly appreciate the CBN’s support in premium collection from insured institutions and look forward to even greater synergy going forward,” Sunday said.
However, he pointed out some operational challenges facing the NDIC, including the absence of a unique identifier for corporate depositors, such as the Bank Verification Number (BVN), and difficulties in collecting premiums from insured institutions that do not maintain accounts with the CBN.
In response, CBN governor Olayemi Cardoso congratulated the newly appointed NDIC management team and expressed strong optimism about a closer working relationship between the two institutions. He affirmed the CBN’s readiness to collaborate with the NDIC in tackling emerging challenges in the financial system.
“Our meeting today is a testament to our willingness to work together. The CBN counts on NDIC’s support in navigating our uncertain times,” Cardoso said.
He added that his two years in office had given him critical insights into the financial industry. He emphasised the need for proactive measures to mitigate systemic risks through the use of modern tools for financial stability.
Cardoso also welcomed the NDIC’s proposal for a joint crisis framework and assured that such a plan could be developed within the Financial Services Regulation Coordinating Committee (FSRCC) framework.
For her part, CBN Director of Financial Policy and Regulation Rita Sike noted that the apex bank was already enhancing its Credit Risk Management System (CRMS) to integrate the Global Standing Instruction (GSI), which would facilitate the onboarding of Other Financial Institutions (OFIs) into the system.
The NDIC team included Dr. Kabir Katata, executive director of Operations; Yakubu Shehu, director of Human Resources; Olufemi Kushimo, director of Legal Department; and Mrs. Regina Dimlong, Assistant Director of Communications & Public Affairs Department.
On the CBN side, Rita Sike of the Financial Policy and Regulation Department, Nnadi Maduka of the Corporate Communication Department, and Mrs. Salamatu Jubril-Adeniji of the Compliance Department attended the meeting.
The meeting ended with mutual agreement on the need for continued coordination, robust data integration, and collective action to ensure the safety, soundness, and resilience of Nigeria’s banking and financial system.
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
