NDIC to begin liquidation payouts for Heritage Bank’s uninsured depositors in April 2025

Joy Agwunobi

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 disbursed in April 2025.

This follows the revocation of the bank’s license by the Central Bank of Nigeria (CBN) in 2024.

In a recent statement, Hawau Gambo, acting head of communication & public affairs at NDIC, explained that while substantial progress has been made in reimbursing insured depositors, those with balances exceeding the N5 million insurance limit are still awaiting payments as the liquidation process advances.

Since being appointed liquidator under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023, the Corporation has been verifying depositors’ claims and settling insured amounts up to the N5 million per depositor limit. According to the NDIC, most of these payments have been completed, but some depositors remain unpaid due to issues such as missing Bank Verification Numbers (BVNs), account restrictions, and discrepancies in account names.

Additionally, the NDIC noted that some depositors who have already received their insured payments may not be aware due to a lack of transaction alerts from their alternate bank accounts. The Corporation advised affected customers to check their accounts, as many have been reimbursed without immediate notification.

For depositors whose balances exceed the N5 million insurance threshold, the NDIC has begun the process of paying liquidation dividends. These payments will be sourced from the sale of the bank’s physical assets and the recovery of outstanding debts.

The Corporation assured that its asset disposal and debt recovery efforts are progressing efficiently, with the first tranche of payouts for uninsured depositors scheduled for April 2025 on a pro-rata basis.

To maintain transparency, the NDIC has been publicising updates on asset sales through its official website, social media platforms, and traditional media, including newspapers, radio, and television. It reaffirmed its commitment to depositors’ financial security, assuring the public that all licensed banks in Nigeria remain safe.

The Corporation also clarified that the distribution of liquidation proceeds follows a structured legal framework. Under Section 72 of the NDIC Act, assets of the defunct Heritage Bank will first be used to settle deposit liabilities. Other claimants, such as creditors and shareholders, will only receive payments after all depositors have been fully reimbursed.

While the liquidation process continues, the NDIC emphasised its dual approach—paying insured depositors while aggressively recovering assets—to ensure that all depositors, including those with uninsured balances, receive their funds as efficiently as possible.