Safety Of Your Funds In Banks Guaranteed, NDIC Assures Depositors

Managing director and chief executive of the Nigeria Deposit Insurance Corporation (NDIC) Bello Hassan has assured that with strict regulations put in place by the corporation, depositors need not worry about the safety of their money in the country’s banks.

He gave the assurance at the NDIC’s Special Day at the ongoing 46th edition of Kaduna International Trade Fair, assuring that depositors have nothing to fear saving their monies in the bank.

The managing director who was represented by the Area Controller, Kano Zonal Office, Ahmed Umar further said the corporation for over three decades of operation had strived to keep depositors’ confidence in the nation’s financial sector, safeguarding customers’ funds, especially the most vulnerable who would be worst hit in any unforeseen circumstances.

“The NDIC is committed to ensuring a stable financial environment that safeguards depositors and builds public confidence, enabling businesses to thrive and contribute to our nation’s economic development. The corporation has played a vital role in safeguarding depositors, particularly the most vulnerable, and fortifying the financial system.

“Our primary objectives include insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process in the event of bank failures. We are dedicated to shielding Nigerians’ bank deposits from the adverse effects of bank failures.

“In collaboration with the Central Bank of Nigeria (CBN), we strive to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions. Our mission, embodied in the tagline ‘Protecting your bank deposits,’ is to promote financial inclusion and stability by reassuring Nigerians of the security of their savings,” he emphasised.

While calling on depositors of Heritage Bank and other closed banks who were yet to receive payments to hasten to the corporation with necessary documentation, proving ownership of such accounts, such as BVN, means of identification and alternative accounts where NDIC would pay the insured sum into.

“A recent example is the revocation of Heritage Bank’s operating license on June 3, 2024, where the NDIC reimbursed depositors within four days using their Bank Verification Numbers (BVN).

“The swift action has enabled the payment of insured amounts to all depositors other than those with no alternate accounts in other banks or those depositors whose accounts have posted no debits (PND) instructions or have no BVN. These categories of depositors are being contacted by the Corporation through telephone calls and text messages to come forward for verification,” he pointed out.

The Corporation, according to the NDIC Boss pays depositors the maximum insured amount of the N5 million per depositor per bank from its deposit insurance funds (DIF).

He however, stressed the role of NDIC acting as liquidator while at the same time,committed to compensating deposits with balances exceeding N5 million upon realisation of the defunct bank’s assets.

To achieve this, the corporation, the managing director said, the corporation has made a significant progress in realising the assets of the defunct banks and recovering outstanding debts to facilitate timely reimbursement of these uninsured deposits portion in the form of liquidation dividends, adding that the Corporation has successfully and transparently auctioned the failed bank’s landed properties and chattels in line with its statutory mandate under Section 62 (1)(d) of the

NDIC Act, 2023.

“The proceeds from these ongoing sales will be applied towards settling depositors with balances above the insured limit of N5 million, with additional payments to follow as further recoveries are made. NDIC remains committed to ensuring that creditors of the defunct bank receive payments once all depositors have been fully reimbursed. The Corporation’s systematic approach, based on asset realisation and prioritisation of claims, is vital for maintaining public trust and financial stability.

“I urge depositors of closed banks, particularly Heritage bank, who have not yet received their payments, to come forward and provide the necessary documentation supporting ownership of the account, including BVN, means of identification, and details of alternative account where the Corporation will pay the insured sum. You can submit your claims through our website, email, or social media platforms. We remain dedicated to safeguarding depositors’ funds and ensuring their timely reimbursement.

“In collaboration with the Central Bank of Nigeria (CBN), we strive to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions. Our mission, embodied in the tagline ‘Protecting your bank deposits,’ is to promote financial inclusion and stability by reassuring Nigerians of the security of their savings.

“The NDIC has consistently played a crucial role in maintaining financial stability by ensuring depositors receive prompt compensation when banks fail. A recent example is the revocation of Heritage Bank’s operating license on June 3, 2024, where the NDIC reimbursed depositors within four days using their Bank Verification Numbers (BVN).

“This swift action has enabled the payment of insured amounts to all depositors other than those with no alternate accounts in other banks or those depositors whose accounts have posted no debits (PND) instructions or have no BVN. These categories of depositors are being contacted by the Corporation through telephone calls and text messages to come forward for verification.

“It is instructive to note that the Corporation pays depositors the maximum insured. amount of the N5 million per depositor per bank from its deposit insurance funds (DIF).

However, the NDIC acting as liquidator, is also committed to compensating deposits with balances exceeding N5 million upon realisation of the defunct bank’s assets,” he stressed.