The NDIC remits $950 billion to FG and targets increased payments to Heritage Bank depositors

The Nigeria Deposit Insurance Corporation has remitted a total of ₦950 billion to the federal government’s Consolidated Revenue Fund, with the agency expressing optimism that the figure will increase as its operations and financial performance strengthens.

NDIC CEO/CEO Dr Thompson Sunday revealed this during a press conference on the company’s contribution to the Federal Government’s Renewed Hope agenda.

It said the company, which is financed through bank insurance premiums and investment income rather than government appropriations, contributed about ₦274 billion to the Consolidated Revenue Fund in 2025 alone.

According to him, over the years, the NDIC has consistently increased its remittances to the federal government.

“We have contributed about ₦950 billion to the CRF and our contribution has been on an upward trend. Last year it was about ₦274 billion. We hope this year will be even better,” Sunday said.

The Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, commended the company for maintaining financial discipline and consistently remitting revenue to the Federal Government despite operating without government subsidy.

At the time of Heritage Bank’s liquidation, Sunday assured depositors with outstanding balances that the company was stepping up efforts to recover debts owed by the failed bank’s major debtors to facilitate further payments.

He revealed that a substantial loan owed by one of the bank’s largest debtors was being called in, expressing confidence that recovery would enable the NDIC to pay off the majority of remaining depositors.

According to him, the company’s responsibility extends beyond the payment of insured deposits to the recovery of bad loans, the disposal of assets and the conversion of investments into cash to finance liquidation dividends for depositors whose funds exceed the insured threshold.

“One particular Heritage Bank borrower is required to pay a substantial sum. Once the funds are recovered, we will be able to pay most of the remaining depositors,” he said.

The NDIC said it has so far paid out over ₦120 billion to Heritage Bank depositors through insured deposits and liquidation dividends. The payments include a first secured payment of ₦51.04 billion following the revocation of the bank’s license, ₦46.6 billion paid in April 2025 and another ₦24.3 billion disbursed in January 2026.

On Sunday he reiterated the company’s commitment to recover more assets to enable additional payments to affected customers.

The NDIC boss also revealed that the company has reduced the deadline for reimbursing insured depositors from the statutory 30 days to 72 hours.

He attributed the improvement to the implementation of the Bank Verification Number, Nigeria’s Interbank Settlement System and an online claims platform that allows direct payment into customers’ alternative bank accounts.

Although the NDIC law provides a 30-day window for refunds, he said the agency considered the period too long and adopted a faster electronic payment system.

Sunday further noted that the NDIC Act 2023 strengthened depositor protection by giving depositors top priority in bank liquidation over creditors and shareholders, while granting the corporation broader powers to resolve failing banks, recover assets and prosecute those responsible for bank failures.

He, however, said the company has no immediate plans to increase insurance premiums paid by banks, arguing that the current framework adequately protects 98.98% of depositors.

With the revised insurance limits, deposit coverage for customers of commercial banks has increased from ₦500,000 to ₦5 million, while customers of microfinance banks, primary mortgage banks and payment services banks are now covered up to ₦2 million, up from ₦200,000 previously.

Speaking on the ongoing recapitalization in the banking sector, Sunday expressed confidence in the stability of the sector, saying the Central Bank of Nigeria and the NDIC subjected all capital injections to rigorous checks to ensure they were genuine and not financed through borrowed or illicit funds.

He added that the company does not expect any banks to fail as a result of the recapitalization exercise, although contingency plans have been developed to respond to unexpected developments.

According to the NDIC, it currently provides deposit insurance coverage for 914 licensed financial institutions, protecting more than 281 million deposit accounts across the country.

The company also revealed that it has recovered ₦42.65 billion from outstanding loans, generated ₦14.72 billion from investments and realized ₦78.57 billion through the disposal of assets belonging to failed banks, overseeing the liquidation of 653 failed financial institutions nationwide.

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