Abuja, Nigeria – March 30, 2025 – The Nigeria Deposit Insurance Corporation (NDIC) has announced that it will commence the payment of liquidation dividends to uninsured depositors of the now-defunct Heritage Bank in April 2025, following substantial progress in the recovery and disposal of the bank’s assets.
In a statement issued by Hawwau Gambo, Acting Head of Communication & Public Affairs, the NDIC confirmed that the first tranche of these payments will be disbursed on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which establishes the priority of claims in bank liquidations.
Depositors Come First: Understanding the Payment Process
The NDIC emphasized its mandate to ensure depositors receive their funds as swiftly as possible. Under Nigerian banking regulations, when a financial institution becomes insolvent, its deposit liabilities take precedence over all other claims, including those of creditors and shareholders.
“Where an insured institution is unable to meet its obligations or suspends payment following the revocation of its license, its assets shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities,” the NDIC explained.
This means that depositors will be the first to receive payments, while other claimants—including creditors and shareholders—will only be considered after depositors have been fully reimbursed. The NDIC reassured Nigerians that despite Heritage Bank’s failure, the country’s financial system remains stable and sound, urging the public to continue banking with confidence.
Addressing Concerns of Uninsured Depositors
The NDIC also addressed concerns of depositors whose balances exceed the maximum deposit insurance limit of ₦5 million, assuring them that efforts are ongoing to expedite their payments through liquidation dividends.
Following the revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the bank’s 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. Since then, the Corporation has been verifying and reimbursing insured depositors—those with balances up to ₦5 million.
A significant number of depositors have already received their insured amounts, but the NDIC acknowledged some delays due to account-specific issues.
Challenges Hindering Some Payments
The Corporation highlighted several factors affecting depositors who have yet to receive their insured funds, including:
- Lack of Bank Verification Number (BVN) – Payments require a BVN-linked alternate bank account.
- Post-No-Debit (PND) Restrictions – Some accounts are restricted from transactions due to regulatory issues.
- KYC (Know Your Customer) Limitations – Tier 1 accounts with restrictions on deposit amounts are subject to review.
- Name Mismatches – Discrepancies in account names require resolution before payments can be processed.
- Unaware Depositors – Some depositors have received payments but may not realize it due to missing transaction alerts on their alternate accounts.
To address these challenges, the NDIC urged depositors to verify their alternate bank accounts, as payments may have already been made without their immediate knowledge.
Recovering Assets to Pay Uninsured Depositors
For depositors with balances above ₦5 million, the NDIC confirmed that the insured portion has been paid, while the remaining funds will be disbursed as liquidation dividends.
The Corporation stated that it is making significant progress in recovering debts and selling the bank’s physical assets to ensure prompt payments. “We are actively pursuing the realization of physical assets and investments while aggressively recovering risk assets,” the statement read.
To maintain transparency and accountability, the NDIC has publicized the asset disposal process via its website, social media platforms, national newspapers, and broadcast media.
“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 assured.
Confidence in the Banking Sector
Despite the liquidation of Heritage Bank, the NDIC reaffirmed that Nigeria’s banking system remains resilient, and depositors should remain confident in the stability of licensed financial institutions.
As April 2025 approaches, affected depositors are encouraged to stay informed through official NDIC communication channels for updates on the liquidation process.
For further inquiries, depositors can visit www.ndic.gov.ng or follow the NDIC’s social media pages.
