The Nigeria Deposit Insurance Corporation (NDIC) announced that it has disbursed 86% of the insured deposits for customers of the recently liquidated Heritage Bank. The NDIC is working to complete the remaining 14%, which involves accounts affected by court or regulatory restrictions.
Mr. Bello Hassan, Managing Director/Chief Executive of the NDIC, shared this update during a retreat in Lagos for the House of Representatives Insurance and Actuarial Matters Committee. Rep. Ahmed Usman Jaha chaired the retreat, which was themed “Strengthening Financial Stability and Deposit Insurance Frameworks for Economic Resilience.”
Represented by Executive Director of Corporate Services Emily Osuji, Hassan explained that a recent review increased the maximum deposit insurance coverage from N500,000 to N5 million. This adjustment aims to ensure that deposit insurance adequately covers more customers.
Hassan highlighted that the new coverage protects 98.98% of depositors and 25.37% of deposit value at Deposit Money Banks (DMBs). For Microfinance Banks (MFBs), Payment Service Banks (PSBs), and Mobile Money Operators (MMOs), the revised insurance covers 99.27%, 99.34%, and 99.99% of depositors, respectively, with varying percentages of total deposit values.
He emphasized the importance of timely reimbursement in maintaining financial stability. The NDIC has updated its payment methods to ensure quicker access to funds for depositors, demonstrated by their recent prompt payments to Heritage Bank depositors using the Bank Verification Number (BVN) system.
Rep. Ahmed Usman Jaha reassured depositors about the safety of their funds, emphasizing that there is no cause for concern regarding their deposits in the banking system.
