The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has disbursed a total of N54.62 billion to 691,418 depositors of the defunct Heritage Bank.
It stated that it is a significant milestone in its resolution process less than a year after the bank’s liquidation.
A statement by Hawwau Gambo, head, Communication & Public Affairs, NDIC, noted that the Corporation also declared a liquidation dividend of 9.2 kobo per Naira to uninsured depositors, reaffirming its commitment to depositor protection and financial system stability.
Thompson Sunday, the Managing-Director and Chief Executive Officer of NDIC, made the disclosure during a courtesy visit by the new management of the Corporation to the headquarters of the Central Bank of Nigeria (CBN) in Abuja.
The visit, aimed at strengthening collaboration between the two institutions, also served as an opportunity to outline the Corporation’s strategic direction and highlight key operational challenges.
Sunday commended the CBN for its reform programmes under the leadership of Governor Olayemi Cardoso, particularly efforts at stabilising the foreign exchange market and the ongoing recapitalisation of Deposit Money Banks.
According to him, “we are aligning our operations with the NDIC Act 2023 (as amended), and have begun a strategic restructuring to reinforce our risk minimisation mandate. We are also developing a new corporate strategy to replace the existing one, which expires at the end of this year.”
He emphasised NDIC’s readiness to collaborate more closely with the apex bank in order to enhance financial system stability, while also appreciating the CBN’s support in facilitating the collection of insurance premiums from insured institutions.
However, he highlighted some challenges that need to be jointly addressed.
These include the lack of a unique identifier, such as the Bank Verification Number (BVN), for corporate account holders, and difficulties in collecting premiums from institutions that do not maintain accounts with the CBN.
Sunday called for a more robust synergy between the two organizations, including the development of a joint crisis preparedness framework that would strengthen crisis management responses within the banking sector.
In response, Rita Sike, Director, Financial Policy and Regulation at the CBN, acknowledged the proposal and noted that the framework could be pursued under the auspices of the Financial Services Regulation Coordinating Committee (FSRCC).
She also disclosed that the CBN was working to upgrade the Credit Risk Management System (CRMS) to integrate the Global Standing Instruction (GSI), a move that would facilitate the onboarding of Other Financial Institutions (OFIs).
Olayemi Cardoso, Governor of the CBN, in his remarks, congratulated the new NDIC Managing Director and the Executive Director, Operations, Kabir Katata, on their appointments.
He welcomed the initiative to deepen collaboration between the NDIC and the CBN, describing the visit as both timely and symbolic of shared commitment. “Our meeting today is a clear testament to our willingness to work together.
The CBN counts on NDIC’s support in navigating the uncertain times that we are in,” Cardoso said.
He further noted that the past two years in office had presented critical lessons in financial sector governance, stressing the need for proactive measures to deal with potential systemic shocks.
According to him, both institutions must leverage modern tools to protect the financial system and maintain public confidence in the banking sector.
Also present from the NDIC were Yakubu Shehu, Director, Human Resources; Olufemi Kushimo, Director, Legal Department and Regina Dimlong, Assistant Director, Communications & Public Affairs.
The CBN team included Rita Sike, Nnadi Maduka of the Corporate Communications Department, and Salamatu Jubril-Adeniji of the Compliance Department.
