The Managing Director/Chief Government Officer of Nigeria Deposit Insurance coverage Company, Bello Hassan, has reassured prospects of the failed Heritage Financial institution that their funds within the financial institution are protected.
Hassan gave this reassurance on the 2024 NDIC Editors Discussion board held in Lagos on Saturday.
The NDIC boss, who was represented by the Government Director (Operations), Mustapha Ibrahim, stated, “The current closure of Heritage Financial institution, following the revocation of its licence by the CBN on June 3, 2024, brings to the fore NDIC’s crucial position in safeguarding depositors.
“Performing by the related provisions of the Banks and Different Monetary Establishments Act (BOFIA) 2020 and the NDIC Act 2023, the NDIC was appointed liquidator to handle the orderly decision of the financial institution and oversee the cost of its depositors and different claimants.
“It’s instructive that within the discharge of this crucial position of depositor reimbursement, the company started the cost of the insured deposits of N5m per depositor inside a report time of 4 days of the financial institution’s closure. This was achieved utilizing Financial institution Verification Numbers as a singular identifier to find depositors’ alternate accounts in different banks with out the necessity to fill out varieties or go to the NDIC places of work.”
He stated this method has enabled the cost of most depositors with BVN-linked accounts up to now.
“That is coming at a time when the company had just lately elevated the deposit insurance coverage protection from N500,000 to N5m in Deposit Cash Banks which considerably minimised the detrimental influence of the financial institution’s failure on the affected depositors. This achievement is according to the provisions of the Worldwide Affiliation of Deposit Insurers Core Precept 15, which emphasises well timed payouts to depositors of failed banks.
“Having largely reimbursed depositors their insured deposits, the Company is dedicated to making sure that depositors with balances exceeding N5m are additionally paid the steadiness of their deposits. These uninsured deposits characterize a good portion of the overall deposits in Heritage Financial institution. On this regard, the Company is already working assiduously to make sure that depositors with quantities over the utmost insured quantity of N5m are paid by way of liquidation dividends from the realisation of the defunct financial institution’s belongings and restoration of money owed.
“The company has already initiated the method of debt restoration and realisation of investments and bodily belongings of the defunct financial institution to make sure well timed cost to the uninsured deposits of the defunct financial institution.”
The NDIC boss additionally reassured the collectors of the defunct financial institution, who he stated will obtain funds in spite of everything depositors have been absolutely reimbursed.
In June, the CBN revoked the licence of Heritage Financial institution and appointed NDIC as its liquidator.
Additionally talking on the workshop, the Director of Communication and Public Affairs on the Nigeria Deposit Insurance coverage Company, Bashir Nuhu, stated the Discussion board themed ‘Strengthening Nigeria’s Monetary Security-Web: The Position of Deposit Insurance coverage,’ supplied a platform for the contributors to be taught concerning the Company.