ABUJA – The Nigeria Deposit Insurance Corporation (NDIC), on Monday celebrated visitors with various gifts when it hosted a special day at the ongoing 19th Abuja International Trade Fair.
The gifts which ranged from Television, cooking gas, electric cookers among other household items were won through lucky deep lottery exercise to the excitement of the jubilant participants who attended the event which aimed to promote financial literacy and awareness among populace.
Speaking during the exercise, NDIC’s Managing Director, Bello Hassan, emphasized the importance of deposit insurance in safeguarding public funds.
Represented by Hajiya Hawwau Gambo, Director, Corporate and Public Affairs Unit, Hassan said the NDIC has made remarkable strides in safeguarding depositors, stressing that following the closure of Heritage Bank, the NDIC initiated payments to depositors within four days, utilizing Bank Verification Numbers (BVN) for swift compensation.
According to him, this innovative approach has enabled 84.98% of depositors with linked accounts to receive up to N5 million directly, reinforcing public confidence in the banking system amid challenges.
Hassan emphasized the NDIC’s commitment to financial stability and depositor protection as vital for economic growth and resilience.
Advertisement
“The importance of deposit insurance cannot be overstated in a financial system where confidence is essential. It acts as a safety net that reassures depositors, builds trust in the banking system, and helps to prevent bank
runs during periods of uncertainty. Over the years, the NDIC has been instrumental in promoting stability by ensuring that when banks fail, depositors are promptly compensated.
“The recent closure of Heritage Bank, following the Central Bank of Nigeria’s revocation of its operating licence on June 3, 2024, underscores the crucial role of the NDIC in protecting depositors. In line with the
provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023, the NDIC was appointed liquidator to oversee the resolution of the bank and the payment of its depositors.
“In an unprecedented achievement, the NDIC commenced payments to depositors within four days of Heritage Bank’s closure. By leveraging depositors’ Bank Verification Numbers (BVN) as a unique identifier, the
Corporation was able to identify alternate accounts and credit the insured amounts of up to N5 million directly, without the need for forms or physical visits to NDIC offices.
“This innovative approach has enabled the
payment of 84.98% of depositors with BVN linked accounts to date. This prompt response, alongside the recent increase in deposit insurance coverage from N500,000 to N5 million, has significantly mitigated the
impact of the bank’s failure on depositors” he said.
In his remarks, Chief Emeka Obegolu, the President of the Abuja Chamber of Commerce and Industry (ACCI), emphasized the NDIC’s pivotal role in ensuring financial stability and protecting depositors, which is essential for fostering trust in Nigeria’s banking system.
Obegolu, who delivered a keynote speech at the event, urged attendees to engage with NDIC representatives to understand their initiatives better, highlighting the fair’s theme: “Mobility Options for Transportation, Trade Finance, and Taxation” as crucial for economic growth and seamless trade.
He expressed gratitude towards the NDIC for its commitment to a stable financial ecosystem.
