Abuja, Nigeria – The Nigeria Deposit Insurance Corporation (NDIC) has announced that the first batch of liquidation dividends for uninsured depositors of the now-defunct Heritage Bank will commence in April 2025.
In a statement issued on Sunday by its Acting Head of Communication & Public Affairs, Hawwau Gambo, the NDIC disclosed that significant progress had been made in the recovery of Heritage Bank’s assets and debt collection, facilitating the planned payout.
According to the Corporation, the first tranche of payments will be distributed on a pro-rata basis, aligning with Section 72 of the NDIC Act 2023, which prioritizes the settlement of deposit liabilities over other financial obligations in cases of bank failures.
“With considerable progress recorded in asset realization, the Corporation will declare the first tranche of liquidation dividends in April 2025, which will be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023 on the priority of claims,” the statement read.
Heritage Bank Liquidation Process
The Central Bank of Nigeria (CBN) revoked Heritage Bank’s operating license on June 3, 2024, appointing the NDIC as the official liquidator under Section 12(2) of the Banks and Other Financial Institutions Act 2020 and Section 55(1 & 2) of the NDIC Act 2023. Since then, the Corporation has been overseeing the liquidation process, ensuring depositors receive their insured funds.
Under the NDIC’s payout structure, insured deposits—capped at N5 million per depositor—have been disbursed, though some account holders have yet to receive their funds due to various challenges.
Challenges Hindering Payments
The NDIC highlighted several factors delaying payments, including:
- Absence of Bank Verification Numbers (BVN) or alternate bank accounts, making it difficult to retrieve account details from the Nigeria Inter-Bank Settlement System (NIBSS) database.
- Post-no-debit restrictions on some accounts.
- Know Your Customer (KYC) limitations, particularly on Tier 1 accounts, which restrict fund lodgements.
- Discrepancies in account names.
Additionally, some depositors may have already received their payments but remain unaware due to the absence of mobile transaction alerts on their alternate accounts. The NDIC urged such individuals to check their bank statements for possible credits.
Next Steps for Uninsured Depositors
For depositors with balances exceeding the insured N5 million limit, the NDIC confirmed that the remaining funds would be disbursed as liquidation dividends. The Corporation assured the public that asset sales and debt recovery efforts were being pursued aggressively to generate sufficient funds for these payments.
As part of its transparent liquidation process, the NDIC stated that asset disposal notices had been widely publicized via its official website, social media platforms, national newspapers, as well as television and radio broadcasts.
Commitment to Depositor Protection
Reaffirming its dedication to safeguarding depositors’ funds, the NDIC stressed that liquidation dividends would be distributed strictly in accordance with Section 72 of the NDIC Act 2023. This means that all depositors will be reimbursed before any funds are allocated to other creditors or shareholders of the failed Heritage Bank.
The Corporation encouraged affected depositors to verify their account details and resolve any discrepancies that could hinder payments. It also reassured the public that all other licensed banks remain financially stable, urging Nigerians to continue their banking activities with confidence.
The NDIC reiterated that its priority is ensuring a seamless liquidation process while minimizing any delays in deposit reimbursements.
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