The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that it has paid ₦54.62 billion to 691,418 depositors of the now-defunct Heritage Bank. The Corporation also announced a liquidation dividend of 9.2 kobo per naira for uninsured depositors, marking a major step in its resolution process following the bank’s licence revocation by the Central Bank of Nigeria (CBN) in 2024.
This announcement was made by the new Managing Director and Chief Executive Officer of the NDIC, Mr Thompson Sunday, during a courtesy visit to the CBN headquarters in Abuja. Mr Sunday was recently appointed alongside the NDIC’s Executive Director of Operations, Dr Kabir Katata. The new leadership team was officially inaugurated in late July by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, at the Ministry of Finance in Abuja.
Mr Sunday used the meeting to call for deeper collaboration between the NDIC and the CBN, specifically proposing a joint crisis preparedness framework. He said such a framework was necessary to strengthen Nigeria’s financial system, especially in light of growing economic challenges and global uncertainties.
“We believe that with a joint approach to crisis preparedness and resolution, both institutions can enhance depositor confidence and protect the financial system from shocks,” he said.
Responding to the proposal, the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, congratulated Mr Sunday and his team on their appointments and expressed confidence in their ability to strengthen the financial safety net.
“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 emphasised the importance of the partnership, noting that his two years in office had revealed critical lessons about the need for proactive risk management in the banking sector. Cardoso said both the CBN and the NDIC must use modern tools and frameworks to manage potential risks and protect depositors.
The Director of Financial Policy and Regulation at the CBN, Mrs Rita Sike, also noted that the proposed crisis framework could be addressed under the Financial Services Regulation Coordinating Committee. She added that the CBN was currently working to improve its Credit Risk Management System by integrating the Global Standing Instruction (GSI), which will allow other financial institutions to be onboarded, thereby broadening financial oversight.
In his remarks, Mr Sunday praised the CBN for its ongoing reform initiatives, especially efforts to stabilise the foreign exchange market and recapitalise Nigerian banks. He pledged that the NDIC would continue aligning its operations with the newly amended NDIC Act of 2023.
According to him, the Corporation is currently undergoing a strategic restructuring process to better carry out its risk minimisation role. A new corporate strategy is also being developed, as the existing one will expire at the end of this year.
The NDIC Chief Executive highlighted some recent milestones achieved by the Corporation. These include the successful payment of ₦54.62 billion to Heritage Bank depositors within a year of closure, the 9.2 kobo per naira liquidation dividend to uninsured depositors, and the ongoing development of a target funding framework that will ensure better preparedness for future bank failures.
However, Mr Sunday pointed out some challenges the Corporation is facing. He mentioned the lack of a unique identifier like the Bank Verification Number (BVN) for corporate customers, which makes tracking deposits difficult. He also noted that it is hard to collect premiums from insured financial institutions that do not maintain accounts with the CBN. He said the NDIC is ready to work with the apex bank to address these operational gaps.
Members of the NDIC team at the meeting included Dr Kabir Katata; Director of Human Resources, Mr Yakubu Shehu; Director of Legal Department, Mr Olufemi Kushimo; and Assistant Director of Communications & Public Affairs, Mrs Regina Dimlong.
Representing the CBN were Mr Nnadi Maduka of the Corporate Communication Department and Mrs Salamatu Jubril-Adeniji of the Compliance Department.
The meeting signals a renewed commitment between the NDIC and the CBN to collaborate more closely in dealing with future banking challenges, restoring depositor confidence, and ensuring financial system stability in Nigeria.
