The Nigeria Deposit Insurance Corporation (NDIC) has initiated the recovery of loans granted by the defunct Heritage Bank and is preparing to liquidate its assets to settle outstanding uninsured deposits and liabilities. The move is aimed at reimbursing depositors whose funds exceed the insured coverage limits.
Also read
NAICOM Urges Insurers to Support Training of One Million Youths in Insurance
NAICOM Sets December 31 Deadline for Insurers to Clear Outstanding Claims
Insurance Sector Deepens Engagement with Aviation Industry at High-Level Abuja Meeting
During the NDIC Special Day at the Lagos International Trade Fair, NDIC Managing Director, Bello Hassan, emphasized that following the revocation of Heritage Bank’s operating license by the Central Bank of Nigeria (CBN) in June 2024, the NDIC swiftly reimbursed insured depositors using the Bank Verification Number (BVN) for direct payment into alternate bank accounts. This process covered approximately 86% of depositors. Hassan highlighted that efforts are now focused on recovering loans and realizing the bank’s assets to pay uninsured depositors through liquidation dividends.
NDIC has been in discussions with debtors of the defunct bank, setting timelines for loan repayments. According to the Director of Corporate Communications, Bashir Nuhu, the corporation aims to recover all outstanding loans and ensure an orderly payment process for creditors once depositors have been reimbursed.
Meanwhile, the NDIC has also ramped up its financial literacy efforts, targeting secondary school students in Gombe, Sokoto, and other states as part of its activities marking World Savings Day 2024. The zonal comptrollers in the states led sensitization sessions on savings and financial management, emphasizing the importance of cultivating a savings habit early on.
In Gombe, students from Government Day Secondary School Gandu were educated on the benefits of saving and investment. The NDIC’s zonal comptroller, Ajiya Bazarma, underscored the importance of financial literacy in fostering entrepreneurship and contributing to the national economy.
In Sokoto, students from three secondary schools participated in training sessions aimed at building a culture of savings and financial prudence. The zonal controller, Bello Usman Kaoje, noted that the initiative was part of the NDIC’s Corporate Social Responsibility and aimed at equipping students with knowledge on efficient money management, budgeting, and investment.
The NDIC reassured the public of its commitment to safeguarding deposits and maintaining stability in the financial sector, urging uninsured depositors to provide their BVN, proof of account ownership, and identification for claim processing.
Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry (LCCI), commended NDIC’s proactive measures in protecting depositors and maintaining financial stability, particularly during economic uncertainties.
