‘Why Heritage Bank Customers Are Yet To Get Their Funds Back After Bank License Revocation’
The Nigeria Deposit Insurance Corporation (NDIC) says account name discrepancies in Bank Verification Numbers (BVN) linked to the alternate accounts of some defunct Heritage Bank customers are delaying the payment of their insured deposits. Mr Bello Hassan, the Managing Director of NDIC told the News Agency of Nigeria (NAN) on Sunday in Abuja. Hassan said the corporation had paid a substantial amount to depositors of the defunct bank without BVN account-linked issues. He called on depositors of the bank who were yet to receive their insured deposit credit alert to visit the NDIC’s website and complete their verification forms for their payment. The managing director said the verification would also include depositors without BVN alternate account. ”We have already commenced the payment of customers since June 6. ”We have paid a substantial amount to the customers. ”What we leverage in making the payment is the BVN of customers. We trace alternate accounts in other banks and pay them their insured amounts. ”There are some that we have challenges linking up because of some discrepancies between the names and others. ”We are calling on customers that have not received their alerts in their alternate accounts to come forward and complete their verification forms so that we can pay them,” he said. On payment of depositors with more than five million naira with the bank, Hassan said they would be paid liquidation dividends. According to him, NDIC has already commenced the process of disposing of the physical buildings and also set the process in motion to make sure that we recover the loans and advances that were granted to the bank. ”That is what we use in paying those liquidation dividends. ”We are not going to wait until we recover everything, no. ”As we recover, we will also advertise to say that we will pay liquidation dividends so that concerned depositors will be on the lookout for alerts in their accounts,” Hassan said. NAN reports that the Central Bank of Nigeria (CBN) on June 3 revoked the banking licence of Heritage Bank Plc. CBN said the decision was made due to the bank’s failure to improve its financial performance, posing a threat to financial stability
Breaking: NDIC commences payment to Heritage Bank’s depositors
Depositors of Heritage Bank (in liquidation) will be paid their insured deposits as from this week. The Managing Director (MD) of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, disclosed this at an on-going press conference, in Abuja. Accord to him, over 99 percent of the 2.3 million depositors have N5 million and less in their accounts and will therefore be paid in full. He explained that only about 4000 depositors have above N5 million in their accounts. For such customers, they will receive an initial N5 million along with others and later be paid more as the NDIC recovers assets of the bank and loans from debtors. Details later…
NDIC Increases Deposit Insurance Coverage For Banks, Mobile Money Operators
The Nigeria Deposit Insurance Corporation (NDIC) has increased deposit insurance coverage for all licensed deposit-taking financial institutions. Speaking at a press briefing in Abuja on Thursday, the NDIC Managing Director/Chief Executive, Bello Hassan, said the coverage ensures that depositors will be reimbursed up to a certain limit for their deposits in the event of a bank failure. He said the increment applies to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs) and Mobile Money Operators (MMOs). The NDIC boss said by increasing deposit insurance coverage, the corporation is ensuring that the move will strengthen the banking system and encourage further financial inclusion within the country. Hassan said the increased deposit insurance coverage levels will take effect immediately, offering Nigerians greater peace of mind when saving their money with licensed financial institutions. He said: “Key increases in Deposit Insurance Coverage: Deposit Money Banks (DMBs) coverage has jumped from N500,000 to N5,000,000, providing full coverage for 98.98 per cent of depositors compared to the previous 89.20 per cent. “Microfinance Banks (MFBs) coverage has risen from N200,000 to N2,000,000, offering full coverage for 99.27 per cent of depositors (up from 98.76 per cent) and significantly increasing the value of covered deposits (from 14.38 per cent to 34.43 per cent of total deposits). “For Primary Mortgage Banks (PMBs), the maximum coverage has been raised from N500,000 to N2,000,000, ensuring full coverage for 99.34 per cent of depositors (up from 97.98 per cent) and boosting the value of covered deposits (from 10.77 per cent to 21.04 per cent of total deposits). “Payment Service Banks (PSBs) coverage has been increased from N500,000 to N2,000,000, providing near-complete protection (99.99 per cent) for depositors and raising the value of covered deposits to 43.10 per cent of the total (from 40.60 per cent). “For Mobile Money Operators (MMOs), the maximum Pass-through deposit insurance coverage has been raised to N5,000,000 per subscriber per MMO, aligning it with the coverage level for DMBs. “Deposit insurance coverage levels for all licensed deposit-taking financial institutions refer to the amount of protection provided to depositors in deposit-taking financial institutions in case the financial institution fails or goes bankrupt.”
NDIC Pays N1.39bn To Failed Banks’ Depositors
The Nigeria Deposit Insursnce Corporation (NDIC) has paid N1.39 billion to 36,163 depositors of 110 closed Microfinance Banks (MFBs) and three Primary Mortgage Banks (PMBs). The Managing Director of NDIC, Mr Bello Hassan, made the disclosure at the NDIC Special Day, at the 2023 Lagos International Trade Fair in Lagos. The fair has the theme: “Connecting Businesses, Creating Value.” Hassan said the corporation promptly commenced the liquidation of these banks and began disbursing insured sums to depositors within a record time of three days of the banks’ closure. This, he said, followed the recent revocation of licenses of some MFBs and PMBs by the Central Bank of Nigeria. He said the payments of the statutory insured sums were still ongoing. Hassan explained that depositors with funds exceeding the insured limit would receive liquidation dividends after the recovery of debts and the sale of the closed banks’ physical assets. “In another development, the corporation is currently in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 banks in liquidation including Allied Bank, Peak Merchant Bank, Commerce Bank. “Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank, and Merchant Bank,” he said. Hassan, represented by Mr Nuhu Bashir, Director, Corporate Communications, NDIC, urged the general public, especially traders and businessmen, to always ensure that their funds were saved in licensed banks. He advised them to avoid patronage of wonder banks and Ponzi schemes which always leave their victims with untold stories. The boss added that the corporation was actively working to investigate and resolve any wrong doing or complaints that it receives about insured banks. “The NDIC in its efforts to boost depositors’ confidence in the financial landscape has continued to address genuine cases of infractions and complaints in relation with their respective insured institutions. “In this regard, the corporation operates a 24-hour toll-free Helpdesk line (080063424357) and an email (helpdesk@ndic.gov.ng) for depositors to put forward their inquiries on the benefits and operations of Deposit Insurance Scheme in Nigeria,” he said. Earlier, the President of the Lagos Chamber of Commerce and Industry, Dr Michael Olawale-Cole, thanked the corporation for being a worthy partner of the LCCI over the years. Olawale-Cole, represented by Bimbo Olasore, the Vice Chairman, Trade Promotion Board, also congratulated NDIC for using its platform to reach out to bank depositors and showcased their products. “As you all are aware, the Lagos International Trade Fair is the biggest and the most vibrant fair in the whole of West Africa. So, it is a very useful platform for people to use and advertise their goods and services. “I’m very pleased in this case that NDIC is using it, in that if the customers are not coming to their offices, they will go to where the depositors are congregating. “I can assure you that you being here for the 10 days, that you would meet tens of thousands of depositors of NDIC.
Liquidated MFBs/PMBs: NDIC Pays N1.08bn To 29,573 Depositors
The Nigeria Deposit Insurance Corporation (NDIC) has paid a cumulative insured sum of N1.084 billion to 29573 depositors of the closed Microfinance Banks/ Primary Mortgages Banks. The Managing Director, Bello Hassan who disclosed this in his speech at the NDIC Special Day at the ongoing 18th Abuja International Trade Fair 2023, said the payments are still ongoing and depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks. He said following the revocation of licenses for 179 Microfinance Banks and 4 Primary Mortgage Banks by the Central Bank of Nigeria (CBN), the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to depositors within just 7 days of the closure of these banks. He said currently, the Corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks. The banks are Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank and Merchant Bank. Urging eligible parties to visit NDIC for more information and download verification forms at, www.ndic.gov.ng , he said this year’s theme, “Sustainable Financing and Taxation as Drivers for the New Economy,” is especially relevant given the determination of government’s efforts towards achieving sustainable growth by strengthening the financial environment to boost economic growth. This, according to him, falls in line with the Corporation’s contributions of ensuring the stability of the financial system by effectively complimenting the CBN in supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failures when it occurs. Speaking further he said “indeed, Nigerian depositors are our priority and our foundation is built on ensuring the safety and security of their deposits. This ideal is encapsulated in our strap line; “Protecting your bank deposits!”. This is crucial for financial inclusion because it gives Nigerians the assurance that their money is safe and accessible when need banks, continuous monitoring and oversight serves as consumer protection for depositors which enhances confidence in the financial system. This acts as an incentive for the unbanked to access financial services of licensed banks. “ He cautioned members of the public of illegal activities of fund managers often referred to as “wonder Banks or Ponzi Schemes. He said these entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many, noting that these “wonder banks” are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme. He encouraged members of the public to patronize only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by the NDIC” in their banking halls or entrances and various branches across the country.
NDIC Trains 350 Law Enforcement Agents, Legal Practitioners
About 350 law enforcement agents and legal practitioners have so far been trained by the Nigeria Deposit Insurance Corporation (NDIC), from the second quarter of 2023 till date. The corporation on its X (Twitter) handle, said the training ranged from capacity building for 307 in-house and external auditors. The NDIC said the training also included capacity building for law enforcement agencies with 64 participants and five participants for the Alternative Dispute Resolution (ADR) training. The corporation said the training was to improve collaboration and knowledge in Deposit Insurance laws and practice. It also said that it was to improve collaboration with relevant stakeholders and performance of employees. “NDIC is committed to promoting financial awareness and education in the country. Financial literacy is essential for smart money decisions,” the corporation said.