NDIC pays depositors of defunct banks within 72 hours via BVN —Executive Director

By Bashir Bello

KANO — The Nigeria Deposit Insurance Corporation, NDIC, said it has settled or reimbursed depositors of defunct banks within 72 hours of their closure.

The affected banks include, Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc.

Speaking during a one day stakeholders meeting held in Kano, the NDIC Executive Director, Corporate Services, Emily Osuji, said the seamless and timely reimbursement of claims was made possible with the linking of the depositors Bank Verification Number (BVN) with the bank account.

Osuji however, appealed to depositors to ensure they link their BVN with their bank account for seamless and timely reimbursement of claims.

She stated: “We have continued to improve our payout processes to ensure that depositors have timely access to their funds. This was evident in the prompt payment of depositors of the defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc, where the Corporation used the BVN of depositors as a unique identifier to locate their alternate accounts into which their claims were transferred. This enabled the payment of claims within days of the banks’ closure”.

Osuji added, “The prudential regulation and supervision of licensed institutions is central to the attainment of stability in our financial system. The Corporation works closely with the Central Bank of Nigeria (CBN) in the supervision of banks to ensure that licensed institutions adhere to sound governance and institute robust risk management and compliance practices.

“Ensuring the stability of the financial system is, however, a responsibility that must be shared by all financial system participants, albeit in varying degrees. While the CBN and the NDIC have continued to strengthen oversight, depositors also have a responsibility to remain vigilant and well-informed.

“In this regard, I am particularly delighted to recognise and warmly welcome the representatives of the CBN and commercial banks who are present here today. I am sure that their contributions will provide further insight and perspectives on consumer protection, as well as the rights and responsibilities of the banking public,” Osuji said.

She said, “Our strapline that says, ‘Protecting your bank deposits!’, are more than mere words for us. We stand by this statement as it is a firm commitment to our mandate of ensuring that depositors have access to their hard earned savings in the event of bank failure. This is a critical responsibility that we do not take lightly.

“This is especially so in times of financial uncertainty and distress, with the NDIC standing as a pillar of safety and reassurance for depositors, particularly the most vulnerable.

“It is in line with this commitment to strengthening depositor protection that the Corporation enhanced the maximum deposit insurance coverage in 2024”. Earlier, in his welcome address, the Kano Zonal Controller, Ahmad Umar said the Town Hall Meeting was part of a broader stakeholder engagement initiative being implemented by the Corporation across selected locations, beginning with Kano, Enugu and Lagos.

He said the stakeholders meeting was to provide a direct and interactive platform for engagement with diverse stakeholder groups, address concerns arising from recent developments in the banking sector, and clarify misconceptions about deposit insurance and the role of the NDIC.

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