The Nigeria Deposit Insurance Corporation (NDIC) has reassured the public about the stability of Nigeria’s banking sector, stating that banks remain financially sound and that more than 80% of depositors of the defunct Heritage Bank Plc have been reimbursed.
Speaking in Minna, Niger State, during activities to mark World Savings Day, Zeyad Abubaka, NDIC representative said the Corporation achieved a record settlement timeline by leveraging the Bank Verification Number (BVN) system to process payments within five days of the bank’s license revocation.
According to Abubaka, the rapid reimbursement was made possible through digitised banking systems that allowed NDIC to trace depositors’ alternative bank accounts via their BVN.
“I can assure you that over 80 per cent of depositors have been repaid their insured amount,” he said. “Within five days of the revocation of license, they were all paid without even filing claims.”
He explained that delays affecting the remaining depositors are largely due to incomplete customer records.
“Those that are having issues are those whose records are not complete. But liquidation is ongoing; those coming forward to complete their records are still being paid,” he added.
Addressing concerns about the broader health of the financial system amid recapitalisation efforts, Abubaka dismissed fears of instability.
“Nigerian banks are very healthy,” he said, noting that the recapitalisation directive, including the proposed N500 billion benchmark for international banks, is aimed at strengthening buffers and boosting confidence, not responding to distress.
He emphasised that higher capital requirements are designed to enhance banks’ resilience and capacity to withstand economic shocks.
On consumer protection, the NDIC official disclosed that the Bank Examination Unit handled about 85 complaints over excess bank charges in the past year, with roughly 50 cases resolved and affected customers refunded.
However, he clarified that fraud-related cases such as compromised PINs or card theft fall outside NDIC’s jurisdiction and are referred to the Central Bank of Nigeria, the Economic and Financial Crimes Commission, or the police, depending on the circumstances.
The remarks were made during a World Savings Day sensitisation program aimed at encouraging savings culture among young Nigerians. Abubaka revealed that about three-quarters of students surveyed during the outreach already own bank accounts, a sign of growing financial inclusion.
The NDIC program targets approximately 200 students per state as part of efforts to deepen financial literacy nationwide.
With accelerated reimbursements and ongoing regulatory reforms, the corporation maintains that Nigeria’s banking sector remains stable and well-positioned to weather economic pressures.
