The Nigeria Deposit Insurance Corporation (NDIC) has announced that it will pay the first tranche of liquidation dividend to uninsured depositors of the defunct Heritage Bank before the end of April 2025.
Speaking during a retreat with the House Committee on Insurance and Actuarial Matters, with the theme
“Navigating Financial Disruptions: Strengthening the NDIC’s Mandate for Economic Stability”, Managing Director and Chief Executive of the NDIC, Bello Hassan, said the payment, amounting to 9.2 kobo per naira, is part of the Corporation’s efforts to settle the bank’s liabilities following the revocation of its banking license by the Central Bank of Nigeria.
According to him, the NDIC the Corporation has made significant progress in the disposal of the defunct bank’s physical assets and has re-strategise on aggressive debt recovery to ensure that outstanding debts owed to the bank are recovered and used to pay the balance of uninsured depositors and other claimants.
Bello also highlighted how NDIC has strengthened its mandate. “The NDIC has been working to strengthen its mandate and ensure the stability of the financial system, amidst emerging disruptions and challenges.
“The Corporation’s efforts include implementing public awareness campaigns, publishing lists of licensed deposit-taking institutions, and leveraging social media to disseminate timely information” Hassan said.
The NDIC boss however lamented that the growing incidence of Ponzi schemes and so-called “wonder banks” as witnessed by the recent crash of the CBEX pyramid scheme, which resulted in an estimated loss of N1.3 trillion have implications for public confidence in the financial system.
He stated that the Corporation remained committed to protecting the public from such fraudulent schemes by implementing comprehensive public awareness campaigns that educate people about the risk of engaging with unlicensed financial institutions.
In his address, the Chairman of the Committee, Ahmadu Usman Jaha, commended the NDIC for its commitment to fostering financial system stability and transparency in its operations.
Jaha praised the NDIC’s swift payment of insured sums to depositors of the defunct Heritage Bank, noting that almost 99 per cent of the short-term amount had been cleared.
He also commended the Corporation’s transparency in announcing the payment of 9.2 kobo per naira to uninsured depositors. “Our financial system has faced mounting pressure from inflammatory threats, currency water currency mortality, cyber threats, and the global re-calibration of banking and investment models.
“Amid these challenges, the NDIC remains a vital pillar in maintaining public confidence in the Nigerian banking sector through deposit protection, balance of provision, federal reservation and financial interests”, he said.
The Committee Chairman assured that the House of Representatives would continue to work closely with the NDIC and other stakeholders to craft sound policies and strengthen institutional frameworks.
