NDIC: 80 per cent of liquidated banks depositors paid, banking sector remains healthy
The Nigeria Deposit Insurance Corporation (NDIC) has allayed fears regarding the stability of the nation’s financial sector, declaring that Nigerian banks are very healthy while confirming that over 80 per
The Nigeria Deposit Insurance Corporation (NDIC) has allayed fears regarding the stability of the nation's financial sector, declaring that Nigerian banks are very healthy while confirming that over 80 per cent of depositors of the liquidated Heritage Bank have already been reimbursed.
Speaking in Minna, Niger State, during the commemoration of the National World Savings Day, Mr. Zeyad Abubaka of the NDIC Bank Examination Unit disclosed that the Corporation has achieved a record-breaking settlement timeline, utilizing the Bank Verification Number (BVN) system to settle depositors within five days of license revocation.
Abubaka, who spoke against the backdrop of ongoing banking recapitalization and economic concerns, stated that the regulator has successfully deployed digital platforms to ensure depositors of failed institutions do not lose their insured sums.
“I can assure you that over 80 per cent of depositors have been repaid their insured amount,” Abubaka stated regarding the Heritage Bank liquidation. “I can boastfully tell you that within five days of the revocation of license, they were all paid without even filing claims.”
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He explained that the swift payout was made possible through the digitization of the banking system. “So long as your BVN is provided as a customer, NDIC can use its digital platform to look out for your other bank accounts where your insured amount can be paid to.”
Addressing the outstanding payments, Abubakar noted that some of the delays being experienced were strictly due to incomplete records from the customers' end, “Those that are having issues are those whose records are not complete. But liquidation is an ongoing thing; those coming forward to complete their records are still being paid today.”
The NDIC official pushed back against anxieties concerning the health of operating banks, citing the recent recapitalization drive, including the N500 billion benchmark for international banks, as a strategic move to build buffers, not a sign of distress.
“Nigerian banks are very healthy,” Abubakar insisted, “The need for banks to recapitalize imposed by regulators came about because of the need to strengthen the banks' capacity and confidence. We are strengthening that institution so that they can be able to carry out their responsibilities while having buffers in the event of any situation.”
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He highlighted that despite inflation and economic headwinds, banks are declaring higher deposit profiles year-on-year, a trend he attributes to increased financial literacy and saving habits among Nigerians.
On the issue of consumer protection and excess bank charges, Abubakar revealed that the NDIC Bank Examination Unit received approximately 85 complaints in the last year alone.
“Out of that 85, about 50 have been sorted, and those customers were refunded back their monies,” he said.
He, however, clarified the corporation’s jurisdiction, noting that while the NDIC forces banks to refund charges where the institution is liable, cases of compromised PINs, card theft, and fraud falling outside bank negligence are referred to the Central Bank of Nigeria (CBN), the EFCC, or the Police.
The World Savings Day event, which targets students to foster a savings culture, has reportedly begun yielding results as Abubakar noted that assessments during the sensitization revealed that three-quarters of the students present already owned bank accounts.
“The whole essence of this is financial inclusion. Catch them young. Once they have the knowledge of the financial industry at this young age, it will in turn be of benefit to the government and the economy,” he added.
The sensitization programme targets approximately 200 students per state, moving across the federation to deepen financial literacy and inclusion.
