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The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to reimbursing depositors of failed banks, responding to concerns from customers awaiting insured funds. In a statement posted on its official X account, the corporation acknowledged delays in settling some claims but emphasized that payouts remain ongoing. The NDIC’s remarks followed appeals from depositors of a collapsed financial institution—identified in prior reports as Heritage Bank—who reported delays in accessing insured amounts.

“We apologize for the inconvenience caused by these delays and any difficulties depositors have faced,” the NDIC wrote. “Payments are proceeding as planned, and we urge affected customers with unresolved cases to contact us directly for assistance.” The agency clarified that most insured depositors have already received their funds, with only two groups still outstanding: those who have yet to provide alternative bank accounts for transfers and account holders whose funds are frozen due to court orders or regulatory investigations linked to fraud or incomplete customer verification processes.

The NDIC stressed that once account freezes—referred to as “post no debit” orders—are lifted by courts or regulators, affected depositors will immediately receive their insured sums. Additionally, the agency announced it has begun distributing N46.6 billion (approximately $30 million) in liquidation dividends to Heritage Bank depositors whose holdings exceeded the insured limit of N5 million. These funds, sourced from asset sales and debt recoveries tied to the defunct bank, mark the first tranche of repayments for uninsured deposits.

However, the corporation noted challenges in settling these larger claims, citing delayed repayments by loan defaulters from failed banks as a key obstacle. Efforts to reclaim outstanding debts and liquidate remaining assets, it said, are critical to fulfilling obligations to depositors.

The NDIC’s role as a financial safety net has drawn increased scrutiny amid Nigeria’s recent banking sector turbulence, with stakeholders emphasizing timely payouts to maintain public trust. While the agency has not specified a timeline for resolving all pending cases, its latest updates aim to reassure depositors that their funds remain a priority. For those awaiting resolution, the NDIC reiterated its call for proactive communication to resolve documentation gaps or legal hurdles swiftly.

The situation highlights broader systemic challenges in managing bank failures, particularly in recovering loans and navigating legal complexities. Analysts say the NDIC’s transparency in addressing delays could bolster confidence in Nigeria’s financial safeguards, though lingering repayment issues underscore the need for stronger debt recovery mechanisms. As the corporation continues asset liquidations and negotiations with defaulters, depositors affected by insolvent banks face a waiting game shaped by legal processes and financial logistics.