The Nigeria Deposit Insurance Corporation (NDIC) has announced April 2025 as commencement date for the payment of liquidation dividends to uninsured depositors of the defunct Heritage Bank, following considerable progress in asset realisation.
The Corporation announced that the first tranche of these payments would be disbursed in April 2025 on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which governs the priority of claims in bank liquidations.
The NDIC, in a statement signed by Hawwau Gambo, Acting Head of Communication & Public Affairs, reiterated its commitment to ensuring depositors receive their funds as expeditiously as possible.
The Corporation explained that, under the provisions of the NDIC Act, insured institutions that become insolvent or have their licenses revoked must prioritise deposit liabilities before settling other claims.
“Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution,” the statement clarified.
This means that depositors of the defunct Heritage Bank will be paid first, while other claimants, including creditors and shareholders, will only be considered for liquidation dividend payments after all depositors have been fully reimbursed. The NDIC reassured the public that the overall banking system remains stable and sound, urging customers to continue their banking activities without fear.
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Addressing the concerns of depositors whose balances exceed the maximum deposit insurance limit of N5 million, the Corporation noted that it was intensifying efforts to ensure prompt payments.
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Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator under Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023. The Corporation swiftly initiated the liquidation process, including the verification and payment of insured deposits up to the N5 million maximum per depositor.
A significant number of depositors have already been reimbursed, but the NDIC noted that some delays remain due to certain account-specific issues. “Depositors yet to receive their insured deposits are largely those without a Bank Verification Number (BVN) or alternate accounts in other banks, which are necessary to facilitate payment through the Nigeria Inter-Bank Settlement System (NIBSS),” the Corporation explained. Other affected accounts include those subject to post-no-debit (PND) restrictions, accounts with Know Your Customer (KYC) limitations such as Tier 1 accounts with restrictions on lodgment amounts, and accounts with name mismatches requiring resolution.
Additionally, some depositors who have already received payments may be unaware due to a lack of mobile transaction alerts linked to their alternate accounts. “We advise all depositors to check their alternate bank accounts, as some payments may have been processed without their immediate awareness,” the NDIC stated.
Regarding uninsured depositors, the Corporation confirmed that while those with balances above N5 million had received their insured portion, the remaining funds would be disbursed as liquidation dividends.
The NDIC has been making significant progress in recovering debts and disposing of the bank’s physical assets to ensure prompt payments to this category of depositors. “We are actively pursuing the realisation of physical assets and investments while aggressively recovering risk assets,” the Corporation affirmed.
To ensure transparency and adherence to legal requirements, the NDIC has widely publicised the asset disposal process through its official website, social media platforms, national newspapers, radio, and television broadcasts. The Corporation said that this multi-pronged approach, simultaneously paying insured depositors while pursuing asset sales and debt recovery, aims to accelerate the liquidation process and minimise delays.
“Our priority is to ensure that all depositors receive their funds as soon as possible. We understand the concerns of affected depositors and are committed to handling this process with the highest level of transparency and efficiency,” the NDIC said.
The NDIC reassured the public of its unwavering commitment to safeguarding depositors’ funds in all licensed banks and encouraged customers to remain confident in the resilience of Nigeria’s financial system.
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