After Auctioning Assets of Defunct Banks, NDIC Speaks on Safety of Depositors' Fund

• The NDIC has reiterated its commitment to preserving national financial stability and protecting depositor funds
• Bello Hassan, the managing director of the company, emphasized the importance of safeguarding bank clients
• He also underlined that asset recovery and financial stability are given top priority in NDIC's systematic approach

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Nigeria Deposit Insurance Corporation has reaffirmed its dedication to safeguarding depositor money and maintaining national financial stability.

The corporation's Managing Director, Bello Hassan, emphasised the importance of protecting bank customers, particularly the most vulnerable, during his remarks at the NDIC Special Day at the 46th Kaduna International Trade Fair on Thursday, February 20, 2025.

“For over three decades, the NDIC has played a critical role in protecting depositors and strengthening the financial system,” Hassan said.

He clarified that the agency's primary duties include managing troubled banks, overseeing financial institutions, insuring deposits in regulated banks, and making sure that bank collapses are handled smoothly.

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Hassan, who was accompanied by Ahmed Umar, the Kano Zonal Controller of NDIC, pointed out that the organization has continuously made sure that depositors receive their money back quickly in the event that banks fail.

Citing the revocation of Heritage Bank’s operating license on June 3, 2024, he said, “Within four days, NDIC reimbursed depositors using their Bank Verification Numbers (BVN). We pay up to N5 million per depositor per bank from our deposit insurance funds.

He further emphasized that NDIC's methodical approach places a high priority on asset recovery and financial stability, promising that creditors of bankrupt institutions would be paid once all depositors had been satisfied.

Hassan asked Heritage Bank depositors who have not yet received their money to present the required paperwork so that they might be promptly reimbursed.

Alhaji Usman Saulawa, the Director-General of the Kaduna Chamber of Commerce, Industry, Mines, and Agriculture, praised the NDIC for its role in protecting the financial industry in his remarks.

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“The NDIC has been instrumental in ensuring financial stability and protecting depositors. We appreciate their efforts and urge them to sustain this commitment,” Saulawa said.

As part of its efforts to educate the public about deposit insurance and financial inclusion, the NDIC attended the trade show.

Thousands of attendees from within and outside the country are expected at the trade show, themed "Promoting Efficiency in Manufacturing, Trade, and Agriculture through Digital Transformation."

NDIC speaks on auctioning defunct bank assets

Legit.ng earlier reported that NDIC said it had successfully and transparently auctioned the defunct Heritage Bank’s assets, including landed properties and chattels.

Its Managing Director, Bello Hassan, disclosed during the corporation’s special day at the ongoing 46th Kaduna International Trade Fair, Kaduna.

He said the auction was in line with its statutory mandate under Section 62 (1)(d) of the NDIC Act, 2023.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng