The Nigeria Deposit Insurance Corporation (NDIC) has announced that it will commence the payment of the first tranche of liquidation dividends to uninsured depositors of the defunct Heritage Bank in April 2025. This development follows the revocation of Heritage Bank’s operating license by the Central Bank of Nigeria (CBN) on June 3, 2024, due to persistent financial instability and regulatory breaches.
The NDIC, tasked with liquidating the failed bank, has been working diligently to recover assets and ensure depositors are reimbursed as swiftly as possible.
In a press statement released on Sunday by Hawwau Gambo, the Acting Head of Communication & Public Affairs at NDIC, the corporation outlined its progress and plans. The payment of liquidation dividends will be made on a pro-rata basis to depositors whose balances exceed the insured limit of N5 million, in accordance with Section 72 of the NDIC Act 2023. This section prioritizes the settlement of deposit liabilities over other claims when an insured financial institution fails, ensuring depositors are the first to be compensated from recovered assets.
Progress in Asset Recovery
Since the CBN’s revocation of Heritage Bank’s license, the NDIC has taken charge of the liquidation process, which includes verifying and paying insured deposits—capped at N5 million per depositor—to affected customers. To date, significant strides have been made in reimbursing insured depositors. However, some depositors have yet to receive their insured sums due to issues such as missing Bank Verification Numbers (BVN), the absence of alternate accounts in other banks, post-no-debit restrictions, and discrepancies in account names.
For depositors with balances exceeding N5 million, the NDIC has already disbursed the insured portion of N5 million. The remaining uninsured balances will now be addressed through liquidation dividends, funded by the ongoing recovery of Heritage Bank’s physical assets and risk assets. The corporation has adopted a dual approach, simultaneously paying insured depositors while aggressively pursuing asset sales and debt recovery to expedite the process.
Transparency in the Liquidation Process
To ensure transparency and compliance with legal standards, the NDIC has publicized the asset disposal process through multiple channels, including its official website, social media platforms, major national newspapers, and radio and television announcements. This effort underscores the corporation’s commitment to maintaining public trust and adhering to its statutory mandate.
The NDIC has emphasized that only after all depositors—both insured and uninsured—have been fully reimbursed will other claimants, such as creditors and shareholders, be considered for payments. This prioritization aligns with the provisions of the NDIC Act, which places deposit liabilities ahead of all other obligations in the liquidation hierarchy.
Challenges and Calls to Action
Despite the progress, the NDIC has acknowledged challenges in reaching some depositors. The corporation has urged those yet to receive their insured deposits to verify their account details and resolve any discrepancies. Common issues include the lack of BVN linkage, restrictions on accounts, and mismatches in account information, all of which have delayed payments. Depositors are encouraged to check alternate bank accounts, as some payments may have been processed without immediate notification due to unlinked mobile alerts.
Reassurance to the Public
The NDIC has reiterated its dedication to protecting depositors’ funds across all licensed banks in Nigeria. In its statement, the corporation sought to reassure the public, stating, “Members of the public are enjoined to continue their banking activities without fear, as all other banks remain safe and sound.” This message aims to maintain confidence in the broader financial system amidst the Heritage Bank liquidation.
