The Nigeria Deposit Insurance Corporation, NDIC, has assured depositors of the defunct Heritage Bank of prompt payment of their money trapped in the bank.
The Corporation gave this assurance following the challenges depositors are having in getting back their money in the failed baked.
Recall that NDIC had promised all depositors that they would all their money in the defunct bank paid back to them. The Corporation, however, started with the payment of those with less than N5 million deposit. However, for those with above N5 million deposits, NDIC is assuring them that the challenges hampering the payments are being resolved.
This was contained in a statement by the Managing Director, NDIC, Bello Hassan, on Saturday during the 2024 edition of the NDIC Editors Forum in Lagos.
Hassan made the disclosure while speaking on the theme of the conference, “Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance”.
Represented by NDIC’s Executive Director, Operations, Mustapha Ibrahim, he said the corporation was working diligently to facilitate payments.
The Managing Director explained that depositors with amounts above the maximum insured limit of N5 million were being reimbursed. He stated that the payment is done through liquidation dividends derived from asset recovery and debt realization efforts.
Hassan said, “The Corporation has initiated the process of debt recovery and realization of investments. As well as physical assets of the defunct bank to ensure timely payment of uninsured deposits.”
The MD added that NDIC’s responsibilities also extend to creditors of the defunct bank. Who he said, would receive payments after all depositors had been fully reimbursed.
“This orderly process, based on asset realization and prioritization of claims, is essential for maintaining public trust in the banking system and promoting financial stability,” Hassan noted.
Speaking on the theme of the conference, he said, it is in line with the corporation’s recent engagement with business editors and finance journalists.
The MD emphasized the mandate of the NDIC which is to protect depositors, especially the uninformed. He, therefore, assured of the Corporation’s commitment to financial system stability.
Fielding questions from newsmen, the MD provided updates on Fortune Bank, which was liquidated over a decade ago.
He told the News Agency of Nigeria, NAN, that NDIC faced challenges collating depositor data. This he said was due to the absence of Bank Verification Numbers, BVN, at the time of the bank’s operation.
Hassan, however, assured Nigerians of prompt payment of depositors of defunct Fortune Bank Plc.
The MD stated that litigation also delayed NDIC’s intervention in that regard. He, however, added that payments had started for insured deposits. With efforts underway to pay the uninsured portion and other claimants.
He said, “We’ve already paid the insured portion. And are now paying the uninsured portion and other claimants.”
Hassan assured of NDIC’s continued awareness efforts to encourage more depositors to come forward.
He, therefore, commended the media for its role in the successful implementation of the deposit insurance system.
In his speech, the Managing Director of the News Agency of Nigeria, NAN, Ali Muhammad Ali, described the forum as an “eye-opener” for editors. He noted that it would enhance their understanding of global financial sector trends.
Ali noted that the theme of the conference was apt and addressed worries caused by turbulence in the financial sector. Especially in the banking sector.
The NAN’s MD, therefore, praised NDIC’s ability to secure 98 per cent to 99 per cent of depositors’ funds. An effort that has reinforce public confidence in the banking system, he said.
According to him, the forum is a learning curve every year. And editors are kept abreast with new information on the health of the global economy and the Nigerian economy.
The President of the Nigeria Guild of Editors, Eze Anaba, in his submission, emphasized the forum’s importance.
“It is reassuring to know our banking sector remains stable despite the challenging economic situation.”
“We know how challenging the economic situation is. And it will be a double job if our banks are also not healthy. And listening to you here today, it’s reassuring for us to know that things are well,” Anaba said.
source: Premium Times
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