Senate Calls for Fair Settlement of Heritage Bank’s Stakeholders Amidst Financial Sector Reforms

The Nigerian Senate Committee on Banking, Insurance, and Other Financial Institutions has urged the Nigeria Deposit Insurance Corporation (NDIC) to extract maximum value from the assets of the defunct Heritage Bank to ensure fair settlements for its stakeholders.

At a stakeholder retreat in Lagos on Saturday, Senator Adetokunbo Abiru, Committee Chairman, commended the NDIC’s swift response following the Central Bank of Nigeria’s (CBN) appointment of the corporation as Heritage Bank’s liquidator in June, after its licence was revoked. The retreat’s theme, ‘Building Resilient Financial Systems through Effective Legislative Interventions’, underscored the urgency of bolstering Nigeria’s banking infrastructure.

Senator Abiru highlighted NDIC’s recent efforts, saying, “Your diligence in restoring hope to affected depositors has been commendable. The process of settling depositors amid financial distress is challenging, yet NDIC’s commitment has met the high standards we expect.” He further urged the corporation to ensure optimal asset recovery, which would bolster the settlement of remaining depositors and creditors. 

Abiru emphasized the importance of expedient, transparent liquidation processes, especially for corporate clients awaiting dividends, adding, “The financial system’s stability depends on institutions like NDIC executing liquidations efficiently and maximizing stakeholder value.”

Alongside praise for NDIC’s expanded deposit insurance coverage—which was raised from N500,000 to N5 million, capturing nearly 99% of depositors—Abiru commended the NDIC’s proactive stance in safeguarding small depositors. “This adjustment reflects NDIC’s responsiveness to Nigeria’s evolving economic environment, ensuring that even the smallest depositors are protected,” he noted.

In light of the growing threats from cyberattacks, Abiru called for legislative frameworks to advance at pace with digital transformations. “As digital banking and fintech become more integral, the risks of cybercrime rise. We must ensure regulators like CBN and NDIC have the resources to oversee these changes effectively, while prioritizing cybersecurity across our financial institutions,” he added.

NDIC Managing Director and CEO, Bello Hassan, reinforced the corporation’s commitment to consumer protection and financial literacy. “We’ve enhanced public awareness to reduce fraud among small depositors and increased the transparency of our operations,” Hassan said. He reassured stakeholders of the banking sector’s soundness, noting the NDIC’s strengthened liquidation efforts and improved debt recovery rates, which have led to full liquidation dividends for depositors of over 20 banks.

The retreat underscored the ongoing work by the Senate and NDIC to shore up Nigeria’s financial ecosystem through decisive and forward-thinking legislative and operational interventions.