By Paul Effiong
Nigeria Deposit Insurance Corporation, NDIC, yesterday, clarified that depositors of liquidated commercial banks are entitled to a maximum insured sum of N5 million, while customers of microfinance banks and other financial institutions are guaranteed up to N2 million.
The Managing Director of the corporation, Thompson Sunday, disclosed this during the 2026 budget defence session held at the Natiomal Assembly Complex, Abuja.
The clarification followed concerns raised by the House Spokesperson, Akin Rotimi who cited public anxiety surrounding the collapse of Heritage Bank.
The lawmaker observed that many Nigerians remain uncertain about how much depositors can recover when a financial institution is liquidated.
He sought clarification on whether customers would receive their entire deposit or only a portion, as well as the the need to prevent speculation and restore confidence in the banking system across the country.
While responding, the managing director informed that one of his organiation`s core mandate is to guarantee deposits, funded through premiums paid by banks.
Reacting to other questions raised, the NDIC boss said the agency does not collect customers deposits directly, but instead receive a risk-based premium, now set at less than one percent of total deposits, replacing the former fixed rate of 15/16 of one percent.
He emphasized that the premium is borne by banks, not depositors, and serves as insurance protection in the event of failure or liquidation.
According to him, once a bank’s licence is revoked as in the case of Heritage Bank on June 3, 2024, his corporation steps in as liquidator and immediately pays the insured sums using depositors’ Bank Verification Number, BVN, to trace alternate accounts.
Depositors with balance of N5 million or below are paid automatically without filing claims.
He equally noted that after paying the guaranteed sums, NDIC proceeds to recover loans, dispose assets and realise investments to pay additional liquidation dividends.
According to him, on January 6, NDIC paid a second tranche of liquidation dividends amounting to N24.63 billion to Heritage Bank depositors.
Speaking at the occasion, the Chairman of the committee, Ahmed Babawo commended the NDIC for the clarification, noting that many Nigerians mistakenly believe that NDIC covers all deposits without limit.
The lawmaker also revealed that more than 90 percent of Heritage Bank’s depositors received their insured amounts within four days, in compliance with international deposit insurance standards.
He, however, stressed that while the N5 million and N2 million thresholds represent the guaranteed minimum, further payments depend on the success of asset recoveries and debt collections undertaken by the corporation.
