The Nigeria Deposit Insurance Corporation (NDIC) has announced that it will begin the payment of the first tranche of liquidation dividends to depositors of the now-defunct Heritage Bank. The move comes after nearly a year since the Central Bank of Nigeria (CBN) revoked the bank’s operating licence on June 3, 2024.
NDIC’s Managing Director and Chief Executive Officer, Mr. Bello Hassan, made the announcement during the corporation’s Special Day event at the ongoing 36th Enugu International Trade Fair. He revealed that significant progress had been made in selling the bank’s assets and recovering debts owed to Heritage Bank, which has enabled the NDIC to begin the next phase of reimbursing depositors.
According to Hassan, “We have commenced preparations to pay the first tranche of liquidation dividends this month – April 2025.” He explained that this payment would be for depositors whose funds exceeded the insured deposit limit of ₦5 million.
The NDIC had previously disbursed insured deposits of up to ₦5 million to affected customers within four days of the bank’s closure, a move many commended as swift and reassuring.
Speaking through the NDIC South-East Zonal Coordinator and Assistant Director, Mrs. Pamela Robert, Mr. Hassan encouraged those who have yet to receive their insured deposits or who had larger funds trapped in the failed bank to come forward with the necessary documents.
“I therefore urge depositors of closed banks, particularly Heritage Bank, who have not received their payments, to come forward and provide the necessary documentation supporting ownership of the account. These include Bank Verification Numbers (BVN) and alternate bank account details,” he said.
He further stressed that the NDIC has a strong track record in managing bank failures. According to him, the corporation has successfully declared full liquidation dividends to depositors of 20 previously failed banks. This, he said, is a testament to the NDIC’s commitment and capacity to protect depositors’ interests.
Hassan gave assurance that the corporation is financially and operationally equipped to handle the liquidation process and ensure that all verified depositors are fully reimbursed as more funds are recovered.
Since the collapse of Heritage Bank, many depositors have expressed concerns over the safety of their funds. The announcement of the liquidation dividend payment brings a sense of relief to many, especially small business owners and retirees who had their savings in the bank.
Heritage Bank’s licence was revoked by the Central Bank due to what the apex bank described as the bank’s inability to improve its financial condition, failure to meet regulatory obligations, and persistent operational weaknesses. The CBN handed over the management of the liquidation process to the NDIC.
In recent years, the NDIC has taken an increasingly active role in promoting financial literacy and protecting the banking public, especially in times of crisis. It has warned Nigerians, particularly students, against engaging in cybercrime, popularly known as “Yahoo Yahoo,” and has encouraged young people to take financial literacy seriously.
At the Enugu Trade Fair, the NDIC continued its campaign, educating the public about its roles, responsibilities, and the importance of insured deposits. It also used the platform to inform the general public about its efforts to resolve the issues surrounding failed banks, such as Heritage Bank.
As the NDIC begins this crucial phase of liquidation dividend payments, depositors are advised to stay informed, ensure they have submitted all required documents, and remain patient as the process unfolds.
