NDIC to Begin Liquidation Dividend Payments to Heritage Bank’s Uninsured Depositors in April 2025
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The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to commence the first tranche of liquidation dividend payments to uninsured depositors of the defunct Heritage Bank in April 2025. This initiative follows substantial progress in asset realization and debt recovery efforts by the corporation.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, due to financial instability, the NDIC was appointed as the liquidator. Since then, the corporation has been actively involved in verifying and reimbursing insured deposits, which are capped at a maximum of N5 million per depositor. Depositors with balances exceeding this insured limit have received the insured portion, with the remaining balances pending liquidation dividends.
The NDIC’s approach involves concurrently reimbursing insured depositors while aggressively pursuing the realization of physical assets and the recovery of outstanding debts. This strategy aims to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays. The corporation has advertised the asset disposal process on its official website, social media platforms, major national newspapers, and through radio and television announcements to maintain transparency and compliance with legal requirements.
In compliance with Section 72 of the NDIC Act 2023, which prioritizes the settlement of deposit liabilities over other liabilities when an insured institution fails, the NDIC will declare the first tranche of liquidation dividends in April 2025. These dividends will be paid to uninsured depositors on a pro-rata basis. Other claimants, including creditors and shareholders, will be considered for payment only after all depositors have been fully reimbursed.
The NDIC has also acknowledged challenges in reaching some insured depositors due to incomplete Know Your Customer (KYC) information, post-no-debit restrictions, name mismatches, or lack of alternate bank accounts. Depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate awareness.
The corporation assures the public of the safety and soundness of Nigeria’s banking sector, encouraging continued confidence in banking activities.
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