—-Pays 99% of Heritage Bank’s insured deposits
The Nigeria Deposit Insurance Corporation (NDIC) has called for increased collaboration with the House of Representatives Committee on Insurance and Actuarial Matters to address financial irregularities and ensure economic stability.
Meanwhile, the corporation, at the workshop for Member of the House of Representatives Committee on Insurance and Actuarial Matters with theme; “Navigating Financial Disruptions: Strengthening the NDIC’s Mandate for Economic Stability,” in Lagos, also expressed that it has settled 99 per cent of the insured deposit of the defunct Heritage Bank.
The Managing Director/Chief Executive, NDIC, Bello Hassan, speaking at the workshop, said that in considering the federal government’s determination towards achieving sustainable growth by strengthening the financial system and ensuring its stability, amid emerging and ongoing disruptions in the financial structure. The corporation is committed to paying all insured sums promptly in line with best practice.
Moreover, we have made significant progress in the disposal of the physical assets of the defunct bank, and we are pleased to announce that the first tranche of the liquidation dividend of 9.2 kobo per cent naira will be paid to uninsured depositors of the defunct bank before the end of April 2025
Hassan explained that financial disruptions are events or situations that can change the way things are done and are always associated with opportunities and challenges. Key contributors to these disruptions include digital innovations, poor governance, market volatility, economic shocks, inadequate risk management, cybersecurity risk, and the proliferation of Ponzi schemes, among others.
According to him, if the challenges are not addressed in a timely and effective manner, they can erode public and investors’ confidence, with the attendant consequences on financial system stability.
To deal with the challenges associated with financial disruption effectively, banks need a multifaceted strategy that blends resilience, innovation, and a culture of compliance with regulations, he said.
However, the corporation recognises that consumer protection and the preservation of public confidence in the financial system are not only critical to our mandates, but also the foundation for the continued resilience and credibility of the Nigerian banking sector. The growing incidence of Ponzi schemes and so-called “wonder banks,” as witnessed by the recent crash of the CBEX pyramid scheme, which resulted in an estimated loss of ₦1.3 trillion, has implications for public confidence in the financial system.
To him, the Corporation remained committed to protecting the public from such fraudulent schemes by implementing comprehensive public awareness campaigns that educate people about the risk of engaging with unlicensed financial institutions. These campaigns have been executed through radio and television announcements, town hall meetings, academic excursions to the Corporation, and the commemoration of key initiatives such as Financial Literacy Day and World Savings Day, and cybersecurity.
Also speaking at the workshop, the Chairman House Committee on Insurance and Actuarial Matters, Ahmadu Usman Jaha, expressed the committee’s commitment to providing the necessary legislative backing and oversight that will enable the NDIC to function at the highest level of efficiency and effectiveness.
He noted that we are not unmindful of the fact that the NDIC’s statutory powers and intervention tools must evolve to address emerging risks and to position the Corporation as a more agile and responsive actor in ensuring financial system stability.
According to him, beyond legislation, this workshop also serves as a forum for thought leadership, collaboration, and knowledge exchange. The deliberations here will provide an avenue to explore strategies that can strengthen the deposit insurance framework, enhance supervisory oversight, deepen early warning systems, and improve risk management practices across the sector.
