NDIC to Begin Liquidation Dividend Payments to Heritage Bank’s Uninsured Depositors

The Nigeria Deposit Insurance Corporation (NDIC) has announced that liquidation dividend payments to uninsured depositors of the now-defunct Heritage Bank will commence in April 2025. This follows significant progress in recovering the bank’s assets after its license was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024.

In a statement signed by Hawwau Gambo, Acting Head of Communication & Public Affairs, the NDIC reaffirmed its commitment to ensuring depositors receive their funds as swiftly as possible. Payments will be made on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which prioritizes deposit liabilities in bank liquidations.

The NDIC clarified that depositors will be paid first, while other claimants, including creditors and shareholders, will only receive funds after all depositors have been reimbursed. It also reassured the public of the banking sector’s stability, urging customers to remain confident in the financial system.

Challenges in Depositor Payments

While many depositors have already received their insured deposits—capped at N5 million per individual—some payments remain pending due to issues such as missing Bank Verification Numbers (BVN), restricted accounts, or discrepancies in account details. The NDIC urged affected depositors to resolve these issues promptly to facilitate payments.

Additionally, some depositors may have received funds without realizing it due to a lack of transaction alerts linked to their alternate accounts. The Corporation advised them to check their other bank accounts for credits.

Asset Recovery and Transparency

For uninsured depositors—those with balances exceeding the insured limit—the NDIC is actively recovering debts and liquidating assets to ensure payments. The Corporation has publicized the asset disposal process through various media channels to maintain transparency.

“Our priority is to ensure that all depositors receive their funds as soon as possible,” the NDIC stated, emphasizing its dedication to a transparent and efficient process.

The Corporation reassured depositors of its ongoing efforts to safeguard funds in all licensed banks, urging customers to remain confident in Nigeria’s financial system.