Abuja, Nigeria – The Nigerian Deposit Insurance Corporation (NDIC) has moved to allay the fears of depositors of the recently liquidated Heritage Bank, assuring them of prompt repayment of their funds. Addressing a press conference in Abuja, the Managing Director of NDIC, Bello Hassan, reiterated the corporation’s commitment to settling insured deposits within a week, exceeding the 30-day timeframe stipulated by law.
Hassan disclosed that the NDIC has already deployed staff to all Heritage Bank locations, initiating the verification process for insured deposits. “All depositors are currently being verified for onward payment of insured benefits of N5 million. Depositors with insured deposits above N5 million will be paid upon the sale of the bank’s assets,” he explained.
The NDIC boss revealed that approximately 2.3 million depositors are affected, with 99.9% holding balances below N5 million. Only about 4,000 depositors have balances exceeding N5 million. “Our guarantee of repayment is per depositor, meaning that if an individual has multiple accounts, we will merge them and determine the amount to be paid, up to a maximum of N5 million,” Hassan clarified.
As of the latest estimates, the total deposits at Heritage Bank stand at N650 billion, with potential further increases as verification continues. In contrast, outstanding loans borrowed and unrepaid from the bank amount to N700 billion.
Hassan emphasized the NDIC’s enhanced powers under the 2023 NDIC Act, enabling the corporation to expedite the repayment process.
What they are saying:
The Nigerian Deposit Insurance Corporation (NDIC) is assuring depositors of Heritage Bank that their funds will be repaid promptly. The NDIC Managing Director, Bello Hassan, promises that insured deposits will be settled within a week, exceeding the legal timeframe.
Why it matters:
This announcement matters because it addresses the concerns of over 2.3 million depositors who were affected by the bank’s liquidation. The swift repayment process aims to maintain stability in the banking sector and protect the interests of depositors.
In Essence:
The NDIC is committed to repaying insured deposits within a week, providing relief to depositors and ensuring the stability of the banking system. This move demonstrates the corporation’s dedication to protecting depositors’ interests and upholding the integrity of the financial sector.
