NDIC to Start Paying Heritage Bank Liquidation Dividends in April 2025
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has announced that the first tranche of liquidation dividends for uninsured depositors of the defunct Heritage Bank will be paid in April 2025.
This follows significant progress in asset realization and debt recovery efforts by the Corporation, ensuring that depositors with balances exceeding the insured limit of N5 million receive additional payments.
The NDIC, in a statement on Sunday, explained that the payment process aligns with Section 72 of the NDIC Act 2023, which prioritizes deposit liabilities over other claims in the event of a bank’s failure.
The provision states that when a financial institution can no longer meet its obligations or has its license revoked by the Central Bank of Nigeria (CBN), its assets must be used to settle deposit liabilities before addressing other financial commitments.
Following the revocation of Heritage Bank’s license by the CBN on June 3, 2024, the NDIC was appointed as the liquidator. The Corporation said it swiftly began the liquidation process, which included verifying and paying insured deposits to all eligible depositors.
Depositors with balances above N5 million had already received their insured sum of N5 million, with the excess amount now set to be disbursed as liquidation dividends.
The NDIC reassured the public that it has made substantial headway in disposing of the bank’s physical assets and recovering outstanding debts, reinforcing its commitment to settling outstanding depositor claims as efficiently as possible.
To ensure transparency in the process, the NDIC has publicized the asset disposal exercise through various channels, including its official website, social media platforms, national newspapers, and radio and television announcements.
The Corporation also confirmed that other claimants, including creditors and shareholders, will only be considered for liquidation dividends after all depositors have been fully reimbursed.
Despite the significant progress, the NDIC acknowledged that some depositors have yet to receive their insured deposits. The Corporation attributed this to factors such as the absence of Bank Verification Numbers (BVN), restrictions on accounts under Post No Debit (PND) directives, and limitations associated with Know Your Customer (KYC) compliance, particularly in Tier 1 accounts. Additionally, some accounts have name mismatches requiring resolution before payments can be processed.
It was also revealed that “some depositors who have already been reimbursed may not be aware of their payments due to a lack of mobile transaction alerts on their alternate bank accounts.” The NDIC advised such depositors to check their other bank accounts, as payments may have been credited without their immediate knowledge.
The Corporation gave its assurance to protecting depositors’ funds and maintaining confidence in the banking system. It urged the public to continue their banking activities without concern, stressing that all other licensed banks in the country remain stable and secure.
For further inquiries, affected depositors and members of the public can contact the NDIC Claims Resolution Department via email at claimscomplaints@ndic.gov.ng or call the designated helplines during business hours.
