Tag: NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the disbursement of N46.6 billion as the first tranche of liquidation dividends to depositors of the defunct Heritage Bank with funds exceeding the insured limit of N5 million.

NDIC’s Acting Head of Communication and Public Affairs, Hawwau Gambo, yesterday said the payments began on Friday, April 25, 2025.

The NDIC, however, reassured the public that the N46.6 billion payout is only the first tranche, emphasising that further disbursements will follow as more of the defunct bank’s assets are realised and outstanding debts are recovered

Less than one per cent of the defunct bank’s 2.3 million depositors had balances exceeding  N5 million.

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“This initial dividend payment is at the rate of 9.2 kobo per Naira on a pro-rata basis to depositors whose account balances exceeded the NDIC’s maximum insured limit of N5 million at the time of the bank’s closure,” Gambo said.

Liquidation dividends represent the amount paid to depositors of a closed bank in excess of the maximum insured limit, sourced from the proceeds of asset sales and debt recoveries.

Payments to creditors and shareholders are only made after all depositors have been fully reimbursed.

Following the revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC had promptly reimbursed insured depositors up to N5 million per account, Gambo recalled, adding that using Bank Verification Numbers (BVN), the Corporation had credited depositors’ alternate bank accounts to ensure a seamless payment process.

To facilitate the first tranche of liquidation dividends, the NDIC leveraged records previously used for the insured payments, Gambo noted.

She, however, urged depositors who have amounts above N5 million but have not yet received their liquidation dividends to approach the nearest NDIC office or contact the corporation through its official telephone lines.

Meanwhile, she also encouraged depositors who do not have an alternative bank account and were not paid the insured sum to visit the nearest NDIC office or log onto the corporation’s website to download, complete, and submit the deposit verification form for processing.

“The corporation remains committed to its vigorous efforts in asset recovery and ensuring that all eligible depositors are fully reimbursed,” Gambo said.

The Nigeria Deposit Insurance Corporation (NDIC) said that it has successfully and transparently auctioned the defunct Heritage Bank’s assets which included landed properties and chattels.

Its Managing Director, Bello Hassan, made the disclosure during the corporation’s special day at the ongoing 46th Kaduna International Trade Fair, Kaduna.

He said the auction was in line with its statutory mandate under Section 62 (1)(d) of the NDIC Act, 2023.

“The proceeds from the ongoing sales would be applied towards settling depositors with balances above the insured limit of N5 million, with additional payments to follow as further recoveries are made”, he said.

Represented by the Kano Zonal Office Comptroller, Ahmad Umar, Hasdan stated that NDIC was committed to ensuring a stable financial environment that safeguards depositors and builds public confidence.

According to him, this is to enable businesses to thrive and contribute to the nation’s economic development.

He explained that the corporation’s mission was embodied in the tagline ‘Protecting your bank deposits’.

This, Hassan said, was to promote financial inclusion and stability by reassuring Nigerians of the security of their savings.

He cited an example with the recent revocation of Heritage bank’s operating licence on June 3, 2024, where the NDIC reimbursed depositors within four days using their Bank Verification Numbers (BVN).

Hassan added that the swift action had enabled the payment of insured amounts to all the depositors other than those with no alternate accounts in other banks or those depositors whose accounts had posted no debits (PND) instructions or had no BVN.

He explained that depositors with no BVN were being contacted by the corporation through telephone calls and text messages to come forward for verification.

The NDIC boss reiterated the corporation’s commitment to ensuring that creditors of the defunct bank receive payments once all the depositors have been fully reimbursed.

Hassan urged depositors of closed banks, particularly Heritage bank, who have not yet received their payments, to come forward and provide the necessary documentation supporting ownership of the accounts for reimbursement.

Hassan said with strict regulations put in place by the agency, depositors need not worry about the safety of their money in the country’s banks.

He said the corporation for over three decades of operation had strived to keep depositors’ confidence in the nation’s financial sector, safeguarding customers’ funds, especially the most vulnerable who would be worst hit in any unforseen circumstances.

“The NDIC is committed to ensuring a stable financial environment that safeguards depositors and builds public confidence, enabling businesses to thrive and contribute to our nation’s economic development the corporation has played a vital role in safeguarding depositors, particularly the most vulnerable, and fortifying the financial system.

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“Our primary objectives include insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process in the event of bank failures. We are dedicated to shielding Nigerians’ bank deposits from the adverse effects of bank failures.

“In collaboration with the Central Bank of Nigeria (CBN), we strive to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions. Our mission, embodied in the tagline ‘Protecting your bank deposits,’ is to promote financial inclusion and stability by reassuring Nigerians of the security of their savings,” he emphasized.

While calling on depositors of Heritage Bank and other closed banks who were yet to receive payments to hasten to the corporation with necessary documentation, proving ownership of such accounts, such as BVN, means of identification and alternative accounts where NDIC would pay the insured sum into.

“A recent example is the revocation of Heritage Bank’s operating license on June 3, 2024, where the NDIC reimbursed depositors within four days using their Bank Verification Numbers (BVN).

“The swift action has enabled the payment of insured amounts to all depositors other than those with no alternate accounts in other banks or those depositors whose accounts have post no debits (PND) instructions or have no BVN. These categories of depositors are being contacted by the Corporation through telephone calls and text messages to come forward for verification,” he pointed out.

The Corporation, according to the NDIC Boss pays depositors the maximum insured amount of the N5 million per depositor per bank from its deposit insurance funds (DIF).

He however, stressed the role of NDIC acting as liquidator while at the same time,committed to compensating deposits with balances exceeding N5 million upon realization of the defunct bank’s assets.

To achieve this, the corporation he said had made a significant progress in realizing the assets of the defunct banks and recovering outstanding debts to facilitate timely reimbursement of these uninsured deposits portion in the form of liquidation dividends.

“The Corporation has successfully and transparently auctioned the failed bank’s landed properties and chattels in line with its statutory mandate under Section 62 (1)(d) of the NDIC Act, 2023.

“The proceeds from these ongoing sales will be applied towards settling depositors with balances above the insured limit of N5 million, with additional payments to follow as further recoveries are made.

“NDIC remains committed to ensuring that creditors of the defunct bank receive payments once all depositors have been fully reimbursed. The Corporation’s systematic approach, based on asset realization and prioritization of claims, is vital for maintaining public trust and financial stability.

“I urge depositors of closed banks, particularly Heritage bank, who have not yet received their payments, to come forward and provide the necessary documentation supporting ownership of the account, including BVN, means of identification, and details of alternative account where the Corporation will pay the insured sum. You can submit your claims through our website, email, or social media platforms. We remain dedicated to safeguarding depositors’ funds and ensuring their timely reimbursement.

“In collaboration with the Central Bank of Nigeria (CBN), we strive to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions. Our mission, embodied in the tagline ‘Protecting your bank deposits,’ is to promote financial inclusion and stability by reassuring Nigerians of the security of their savings.

“The NDIC has consistently played a crucial role in maintaining financial stability by ensuring depositors receive prompt compensation when banks fail. A recent example is the revocation of Heritage Bank’s operating license on June 3, 2024, where the NDIC reimbursed depositors within four days using their Bank Verification Numbers (BVN).

“This swift action has enabled the payment of insured amounts to all depositors other than those with no alternate accounts in other banks or those depositors whose accounts have post no debits (PND) instructions or have no BVN. These category of depositors are being contacted by the Corporation through telephone calls and text messages to come forward for verification.

“It is instructive to note that the Corporation pays depositors the maximum insured amount of the N5 million per depositor per bank from its deposit insurance funds (DIF).

However, the NDIC acting as liquidator, is also committed to compensating deposits with balances exceeding N5 million upon realization of the defunct bank’s assets,” he stressed.

Nigeria Deposit Insurance Corporation (NDIC), in collaboration with the Bureau of Public Procurement (BPP), on Friday held a Specialised Training for executive staff and selected procurement officers.

The workshop, held at Bristol Palace, Kano, was themed: “Developing Innovative Strategies for Effective Procurement and Financial Management”.

Bello Hassan, NDIC’s Managing Director/Chief Executive, said the workshop aimed at ensuring efficiency, transparency and accountability, to enable the development of effective strategies in procurement processes enterprise-wide.

“We have identified the BPP as a critical stakeholder in our attempt towards

developing effective and efficient procurement capabilities, in realising the Corporation’s strategic thrust for performance driven culture, excellence and operational resilience, in line with its vision of becoming one of the best deposit insurers in the world.

“To achieve this culture, one of the resolutions reached at the 2023 Executive Procurement Retreat held in Uyo, Akwa Ibom State, was continuous training which underscored the critical need for capacity building for all NDIC Officers involved in the value chain of procurement process.

“This workshop, therefore, aligns perfectly with that resolution, aims at equipping NDIC personnel with requisite knowledge and skills necessary to navigate the evolving landscape of Public Procurement practices, procedures and regulations in Nigeria,” he said.

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According to Hassan, in today’s rapidly changing business environment, staying abreast of the current regulations, guidelines, best practices, and innovative approaches were paramount for any organisation seeking to optimise its procurement and operational functions to be counted amongst the best corporate bodies.

He noted that the NDIC has powers of a liquidator as provided in the NDIC Act, 2023 and such powers of a liquidator under the Companies and Allied Matters Act, 2020.

He said the Corporation must ensure that the selection of qualified service providers in the areas of valuation, disposal, debt recovery, etc in respect of failed deposit taking institution follows competitive bidding process.

“The Corporation undertakes these activities through the selection of eligible service providers through Open Competitive Bidding (OCB).”

“These methods of selection ensure healthy competition, transparency, fair pricing, value for money and accountability in line with the principles of public procurement.

“The Corporation relates to procurement of goods, works and consultancy/non-consultancy services, the Corporation is bounded strictly by the provisions of Public Procurement Act (PPA) 2007 Section 15(1)(2),” the NDIC boss said.

Director General, Bureau of Public Procurement, Dr. Adebowale Adedokun, said the theme of the workshop underscored the importance of embracing innovative and dynamic approaches in procurement processes by exploring new ways of leveraging technology, such as e-procurement platforms to streamline bureaucratic bottlenecks in procurement for operations while enhancing transparency, competition, value for money and transparency.