The Nigeria Deposit Insurance Corporation (NDIC) said depositors with balances exceeding N5 million will also be paid from their liquidation dividends.

The Managing Director and Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Mr Bello Hassan made this known on the occasion of NDIC’s special day at the ongoing 45thKano International Trade Fair.

He said, “Over the years, the NDIC has been instrumental in promoting stability by ensuring that when banks fail, depositors are protected, and their funds are reimbursed promptly. Recent lessons from the revocation of Heritage Bank’s operating license on June 3, 2024, and ongoing reimbursement of its depositors reinforces this critical role.

“The corporation began the payment of the insured deposits of N5 million per depositor within a record time of four days of the bank’s closure. This was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors alternate accounts in other banks without the need to fill forms or visit the NDIC offices.

“Having largely reimbursed depositors their insured deposits, the corporation is committed to ensuring that depositors with balances exceeding N5 million are also paid the balance of their deposits. These uninsured deposits represent a significant portion of the total deposits in Heritage Bank.

“In this regard, the corporation is already working assiduously to ensure that depositors with amounts in excess of the maximum insured amount of N5 million are paid through liquidation dividends from the realisation of the defunct bank’s assets and recovery of debts.

“Additionally, the NDIC’s responsibilities extend to the creditors of the defunct bank, who will receive payments after all depositors have been fully reimbursed. This orderly process, based on asset realisation and priority of claims, is essential in maintaining public trust in the banking system and promoting financial system stability.

“The corporation today, 4thDecember 2024 commenced sales of landed properties and chattels of the bank nationwide. This process, which is by competitive public auction, shall follow laid down extant public procurement guidelines aimed at ensuring transparency, fair competition and accountability to enable recovery of commensurate values from the exercise toward payment of liquidation dividend to the uninsured depositors.”

He added that the NDIC remains committed to protect depositors from the adverse effects of bank failures by ensuring reimbursement when failures occur.

“As a critical component of the financial safety-net, the NDIC reassures depositors about the safety of their funds, thereby fostering trust in the banking system and preventing the risk of bank runs during periods of uncertainty. This contributes significantly to the overall stability of the financial system.

“Moreover, I encourage depositors of any closed bank, especially Heritage Bank, who are yet to receive their payments, to come forward with their BVN, proof of account ownership, verifiable means of identification, and alternative account details. Depositors can submit their claims through our various channels, including our website, email, and social media platforms, as we remain committed to ensuring the safety of depositors’ funds,” he added. (Daily Trust)