NDIC Pays Depositors of Heritage Bank, Aso Savings, Others Within 72 Hours After Banks' Collapse
- The NDIC said it reimbursed depositors of failed banks within 72 hours of their closure using linked BVNs to transfer funds quickly.
- NDIC Executive Director Emily Osuji urged customers to link their BVNs to their accounts to ensure smooth and timely payments
- She stressed that the NDIC is working with the CBN to strengthen depositor protection and maintain financial system stability
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Nigeria Deposit Insurance Corporation (NDIC) has said it paid customers of failed banks within 72 hours after the banks were shut down.
The banks affected include Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc.
Source: Getty Images
Speaking at a one-day stakeholders’ meeting in Kano, the NDIC Executive Director for Corporate Services, Emily Osuji, explained that the quick payments were possible because depositors’ Bank Verification Numbers (BVN) were linked to their bank accounts.
She said the BVN helped the corporation identify customers and transfer their insured funds to alternative accounts without delay.
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."
According to The Sun, Osuji claimed this system allowed many depositors to receive their money just days after the banks closed.
Osuji encouraged bank customers to make sure their BVN is properly linked to their accounts to avoid delays in case of any bank failure.
NDIC Strengthens Financial System Stability
Osuji also emphasised that strong supervision of banks is crucial to maintaining Nigeria’s stable financial system. She said the NDIC works closely with the Central Bank of Nigeria (CBN) to monitor banks and ensure they follow good governance, risk management, and compliance standards.
She added that financial stability is a shared responsibility. While regulators like the NDIC and CBN continue to improve oversight, depositors must also stay informed and alert.
She said the NDIC’s slogan, “Protecting your bank deposits,” reflects its strong commitment to ensuring depositors can access their savings if a bank fails. She described the corporation as a source of safety and confidence, especially during times of financial uncertainty.
Osuji also revealed that the NDIC increased the maximum deposit insurance coverage in 2024 as part of its efforts to strengthen depositor protection.
The NDIC Act No. 30 of 2023 and the Banks and Other Financial Institutions Act (BOFIA) 2020 empowered the commission to prosecute those responsible for bank collapses and to effectively liquidate such banks.
Source: UGC
Why failed bank customers face recovery delays
Meanwhile, Legit.ng previously reported that the NDIC explained why depositors of failed banks sometimes face delays in recovering their funds.
According to the corporation, these delays are often caused by multiple legal cases that arise both before and after a bank shuts down.
The NDIC stated that former employees file some of the lawsuits over unpaid salaries, severance packages, exit benefits, and other outstanding entitlements, which can slow down the resolution and payout process.
Source: Legit.ng
