The Nigeria Deposit Insurance Corporation has disclosed the payment of N54.62bn to 691,418 depositors of the defunct Heritage Bank and the declaration of a liquidation dividend of 9.2 kobo per naira to uninsured depositors.

This was disclosed by the new NDIC Managing Director/Chief Executive, Mr Thompson Sunday, during a courtesy visit to the Central Bank of Nigeria headquarters in Abuja.

The Corporation also called for a joint crisis preparedness framework with the Central Bank of Nigeria.

The CBN had withdrawn the licence of Heritage Bank in 2024 and appointed NDIC as its liquidator.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, in late July, inaugurated the new management of the NDIC at the Ministry of Finance, Abuja.

Speaking at the meeting with the CBN management, including the Governor of the Central Bank of Nigeria, Mr Cardoso, the NDIC MD appealed to the CBN to consider developing a joint crisis preparedness framework with the Corporation towards enhancing crisis management.

Cardoso, in his comments during the courtesy visit, congratulated the new Managing Director and the Executive Director of Operations of the Nigeria Deposit Insurance Corporation on their appointments and expressed optimism about deepening collaboration between the two institutions.

“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 reiterated that the visit underscored the shared commitment of both institutions to strengthen collaboration towards safeguarding Nigeria’s financial system amidst evolving economic challenges.

Cardoso averred that his two years in office have revealed critical lessons in the financial industry, requiring that the CBN and the NDIC proactively deal with potential shocks by leveraging modern tools for financial stability. He described the NDIC’s visit as timely, urging both institutions to work closely in mitigating risks and ensuring depositor confidence.

The CBN Director of the Financial Policy and Regulation Department, Mrs Rita Sike, stated that the joint crisis preparedness framework could be dealt with under the auspices of the Financial Services Regulation Coordinating Committee.

She explained that the CBN was in the process of enhancing the Credit Risk Management System to integrate the Global Standing Instruction, which will allow for the onboarding of Other Financial Institutions.

Earlier in his address, the NDIC MD/CE commended the CBN for its reform programmes under the leadership of Mr Cardoso, particularly the stabilisation of the forex market as well as the ongoing recapitalisation of banks.

He stated that the NDIC was committed to aligning its operations with the NDIC Act 2023 (as amended), explaining that the Corporation was in the process of embarking on a strategic restructuring to better align operations with its risk minimisation mandate as well as developing a new corporate strategy, as the one in use was due to expire at the end of the current year.

Mr Sunday reiterated the NDIC’s willingness to collaborate with the CBN towards enhancing financial system stability, expressing appreciation for the CBN’s support in premium collection from insured institutions. He also outlined the Corporation’s recent milestones, to include the payment of N54.62bn to 691,418 depositors of the defunct Heritage Bank, the declaration of a liquidation dividend of 9.2 kobo per naira to uninsured depositors within a year of closure, and the ongoing efforts to develop a target funding framework.

The NDIC Chief Executive also listed some challenges facing the Corporation, including the absence of a unique identifier such as the Bank Verification Number for corporate customers and the difficulty in collecting premiums from insured institutions that do not maintain accounts with the CBN. He expressed the willingness of the Corporation to work with the CBN to address these gaps.

The NDIC team included the Executive Director of Operations, Dr Kabir Katata; Director, Human Resources, Mr Yakubu Shehu; Director, Legal Department, Mr Olufemi Kushimo; and Assistant Director, Communications & Public Affairs Department, Mrs Regina Dimlong.

The CBN team also included Mr Nnadi Maduka of the Corporate Communication Department and Mrs Salamatu Jubril-Adeniji of the Compliance Department.