NDIC Strengthens Partnership with Judiciary to Prosecute Failed Banks

James Emejo in Abuja

Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, has said the corporation has strengthened its collaboration with the judiciary to expedite the prosecution of failed institutions.

He said the partnership had resulted in the resolution of long-standing cases and the declaration of 100 per cent liquidation dividends to uninsured depositors of over 20 closed banks.

Speaking at the NDIC Special Day at the 19th Abuja International Trade Fair, with the theme, “Mobility: Options for Transport, Trade Finance, and Taxation”, he also noted that the Alternative Dispute Resolution (ADR) mechanisms had been employed to enhance its liquidation activities and improve debt recovery.

Represented by NDIC Deputy Director, Communication and Public Affairs Department, Mrs. Hawwau Gambo, Hassan, reaffirmed the NDIC’s commitment to ensuring the safety of depositors’ funds.

He further encouraged 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, identification, and alternative account details” adding that “Claims can be submitted through various channels, including our website, email, and social media platforms, as we remain committed to ensuring the safety of depositors’ funds.”

Hassan pointed out that significant progress had been made in protecting depositors’ funds, with the recent increase in maximum deposit insurance coverage providing enhanced protection across various financial institutions.

He said the increase ensured that 98.98 per cent of total depositors in Deposit Money Banks (DMBs), 99.27 per cent in Microfinance Banks (MFBs), 99.34 per cent in Primary Mortgage Banks (PMBs), and 99.99 per cent in Payment Service Banks (PSBs) are covered, reinforcing NDIC’s commitment to fulfilling its mandate.

He said, “While our immediate focus remains on insured deposits, the NDIC is also committed to ensuring that depositors with balances exceeding N5 million are compensated.

“These larger, uninsured deposits represent a significant portion of the total deposits in Heritage Bank. The corporation has already initiated the process of realising the bank’s assets and recovering debts to ensure the timely payment of the uninsured depositors through liquidation dividends.

“Furthermore, the NDIC’s responsibilities extend to the creditors of the defunct bank, who will receive payments once all depositors have been reimbursed. This orderly process, based on asset realisation and prioritisation of claims, is essential in maintaining public confidence in the financial system and promoting stability.”