Senate Urges NDIC to Maximise Value of Heritage Bank’s Assets

Nume Ekeghe

The Senate has directed the Nigeria Deposit Insurance Corporation (NDIC) to ensure the maximum recovery and realisation of value from the remaining assets of the defunct Heritage Bank, and to optimise settlements for depositors and other creditors.

Speaking at the NDIC’s retreat organised for the Chairman, Senate Committee on Banking, Insurance, and Other Financial Institutions, Senator Adetokunbo Abiru, in Lagos recently, the Committee, praised the NDIC’s swift response in handling depositors’ claims from the collapsed bank.

The retreat, themed: ‘Building Resilient Financial Systems through Effective Legislative Intervention’, addressed emerging risks and the importance of legislative collaboration in bolstering financial resilience.

Abiru said: “I applaud the NDIC for its diligence and commitment to restoring hope to those affected. The process of settling depositors is never easy, particularly in cases involving significant financial distress, but your dedication to resolving this matter demonstrates the high standard of operational efficiency that we, as stakeholders, have come to expect from the NDIC.”

He added: “Nevertheless, I urge the corporation to ensure that maximum value is realized from the bank’s remaining assets, which will ultimately contribute to the settlement of outstanding depositors and other creditors. It is my hope that all the challenges associated with the settlement of the Bank’s stakeholders, including those concerning liquidation dividends for corporate customers, are resolved speedily, effectively, and efficiently.”

In his address, Managing Director/Chief Executive of NDIC, Bello Hassan, highlighted the retreat’s purpose of enhancing collaboration with the Senate to address risks associated with advancements in technology, globalisation, and financial sector consolidation.

He said: “In recent years, the financial services sector has experienced significant transformation, largely driven by advances in technology, globalisation, and consolidation. New services and products have emerged, while new players and financial technologies have been challenging traditional service providers through faster, cheaper, and reliable services.”

Hassan also stressed the importance of managing the additional risks posed by the developments. According to him, “While this development presents opportunities for growth, we must, however, be conscious of the additional risks and complexities that the system may be further exposed to. To address this concern, stakeholders, particularly those charged with oversight functions, must collaborate more than ever before.” 

He added that the legislature’s support is crucial in redesigning the legal framework to adapt to financial advancements while protecting consumers and encouraging innovation.