NDIC Assures Customers of Safety of Deposits in Failed Heritage Bank

The Nigeria Deposit Insurance Corporation (NDIC) has assured customers of the defunct Heritage Bank that their deposits remain secure and will be reimbursed in accordance with the country’s deposit insurance framework. The announcement follows the Central Bank of Nigeria’s (CBN) recent revocation of the bank’s operating license due to insolvency issues.

NDIC Managing Director, Bello Hassan, addressed concerns during a press briefing, emphasizing the corporation’s commitment to protecting depositors. “We want to reassure customers of Heritage Bank that their deposits are fully insured, and the NDIC has mechanisms in place to ensure timely payment within the insured limits,” Hassan stated.

The NDIC operates under a statutory mandate to safeguard depositors’ funds and promote public confidence in the banking system. In line with its mandate, the corporation has commenced the process of verifying and settling claims for customers of Heritage Bank.

Under Nigeria’s deposit insurance scheme, individual depositors are guaranteed coverage of up to ₦500,000, while corporate accounts are insured up to ₦1 million. Customers with deposits exceeding the insured limits will be considered for additional reimbursement through the liquidation process, subject to the recovery of the bank’s assets.

Hassan explained that the NDIC has deployed staff to branches of the defunct bank to assist customers with the claims process. He urged depositors to provide the necessary documentation to facilitate swift payment.

The collapse of Heritage Bank has reignited discussions about the stability of Nigeria’s financial sector. Analysts have cited factors such as poor corporate governance, rising non-performing loans, and economic challenges as contributors to the bank’s failure.

Financial experts have called for stronger oversight and reforms to prevent future bank failures. “Regulators must enhance their monitoring frameworks and address systemic vulnerabilities to ensure a more resilient banking sector,” said Dr. Akin Oladipo, a financial consultant.

The NDIC has reiterated its readiness to collaborate with the CBN and other stakeholders to maintain stability in the banking system and protect depositors. The corporation also emphasized the importance of public awareness about deposit insurance to reduce panic during bank crises.

Depositors have been advised to contact NDIC offices or visit the corporation’s website for updates on the claims process. By ensuring timely reimbursement and maintaining transparency, the NDIC aims to uphold trust in Nigeria’s financial system despite the challenges posed by Heritage Bank’s failure.

This development underscores the critical role of deposit insurance in safeguarding the interests of depositors and maintaining stability in the financial sector.