Accountants and risk managers are going to get more clients as the Nigerian Deposit Insurance Corporation (NDIC) caps refunds at N5 million for Heritage Bank customers: “The Nigerian Deposit Insurance Corporation (NDIC) has announced it will pay a maximum of N5 million to each depositor of Heritage Bank, following the revocation of the bank’s operating license by the Central Bank of Nigeria (CBN).”
Yes, with the collapse of Heritage Bank, and with the Central Bank of Nigeria allowing the process to go through as written in the rule book, where you keep your money now matters. In other words, unlike in the past where dying banks were saved by AMCON, Nigeria’s bad debt buyer, the new team in CBN has allowed Heritage Bank to go down.
This opens many permutations for finance and treasury leads in organizations. You cannot assume that the fund has the same value in Bank A when compared to Bank B since there is now a huge risk that you can lose the fund if something bad happens in a bank.
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In the next coming months, rating agencies in Nigeria will start making lists on the safest banks you can put your money. The veil has been removed because the government is not going to give anyone absolute insurance cover anymore. You need to be materially involved in choosing your bank because things have changed!
Good People, in a GST course in FUT Owerri, the professor who taught us Polity and Economy of Nigeria (GST 108!!!) was trying to explain the economy Nigeria operates on; she came down to Mixed Economy (combinations of many things). On Heritage Bank, Nigeria went FULL Capitalist Economy. Pay attention because this could be the new normal https://www.tekedia.com/concerns-as-ndic-announces-n5m-compensation-for-heritage-bank-nigeria-depositors-following-license-revocation/
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