The Nigeria Deposit Insurance Corporation (NDIC) has initiated the disbursement of N46.6 billion as the first tranche of liquidation dividends to depositors of the defunct Heritage Bank. This payment, commencing on April 25, 2025, targets depositors whose funds surpassed the insured limit of N5 million. This signifies a crucial step towards full reimbursement for those affected by the bank’s closure. The dividend distribution represents the initial phase of returning funds recovered from the sale of the bank’s assets and the collection of outstanding debts. The NDIC emphasized that this is just the first installment, with subsequent payments planned as more assets are realized and debts recovered. This proactive approach underscores the NDIC’s commitment to safeguarding depositors’ interests and maintaining stability within the banking system.
The liquidation dividend payment targets depositors whose account balances were above the maximum insured sum of N5 million at the time Heritage Bank ceased operations. The NDIC clarified that the dividend calculation is based on a pro-rata basis at a rate of 9.2 kobo per Naira of the excess amount. This method ensures equitable distribution of the recovered funds among eligible depositors. The payment process leverages the Bank Verification Number (BVN) system to identify and credit depositors’ alternate accounts in other banks. This streamlined approach aims to ensure efficient and timely disbursement of funds.
The NDIC’s actions follow the revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN) on June 3, 2024, due to regulatory infractions. Immediately following the closure, the NDIC initiated the payment of insured deposits, promptly reimbursing depositors up to the N5 million threshold. This swift action provided immediate relief to a significant number of depositors, mitigating the impact of the bank’s failure. The utilization of the BVN system facilitated the efficient disbursement of insured deposits and laid the groundwork for the subsequent liquidation dividend payments.
The NDIC has outlined clear procedures for depositors to access their liquidation dividends. Depositors whose balances exceeded N5 million and who have not yet received their first tranche are advised to contact the nearest NDIC office or utilize the provided contact channels. Furthermore, depositors without alternate bank accounts who have not received their insured deposits are encouraged to visit an NDIC office or download a deposit verification form from the NDIC website. This comprehensive outreach strategy aims to ensure that all eligible depositors are aware of the process and can access their entitled funds.
The NDIC emphasized its ongoing commitment to ensuring full reimbursement for all depositors. The current payment represents the first tranche of liquidation dividends, and subsequent distributions will follow as more of the bank’s assets are realized and outstanding debts recovered. This commitment provides reassurance to depositors and reinforces the NDIC’s role in maintaining public trust in the banking sector. The Corporation has encouraged depositors with inquiries to reach out to the Claims Resolution Department via designated contact channels.
The NDIC’s handling of the Heritage Bank liquidation underscores its proactive approach to depositor protection and financial stability. By prioritizing the timely disbursement of both insured deposits and liquidation dividends, the NDIC has effectively mitigated the impact of the bank’s failure on its customers. The transparent communication and clear procedures for accessing funds further enhance public confidence in the NDIC’s capabilities and its dedication to upholding the integrity of the Nigerian banking system. The Corporation’s commitment to pursuing further asset recovery and debt collection to facilitate additional dividend payments highlights its dedication to ensuring full reimbursement for all eligible depositors.
