The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to pay the first tranche of liquidation dividends to the depositors of Heritage Bank, following the revocation of the bank’s operating license by the Central Bank of Nigeria (CBN) on June 3, 2024. This marks a significant step towards ensuring that depositors recover their funds.
According to the NDIC Managing Director/Chief Executive, Bello Hassan, substantial progress has been made in selling the bank’s physical assets and recovering outstanding debts. Hassan revealed that preparations for the payment of the first tranche of liquidation dividends would begin in April 2025.
Prompt Payment of Insured Deposits
The NDIC has already paid insured deposits of up to N5 million per depositor within four days of Heritage Bank’s closure, demonstrating the corporation’s commitment to ensuring quick reimbursement to affected customers.
Speaking at the 36th Enugu International Trade Fair, Hassan, represented by Pamela Robert, NDIC’s South-East Zonal Coordinator, urged depositors who have not yet received their payments to provide necessary documentation, including their Bank Verification Numbers (BVNs) and alternate bank account details. This will enable the NDIC to process the payments promptly.
NDIC’s Commitment to Depositors
Hassan emphasized that the NDIC has a successful track record of managing the liquidation of failed banks, having previously declared full liquidation dividends for depositors in 20 banks. He reassured Heritage Bank’s depositors that the NDIC has the financial and operational capacity to fully reimburse all depositors as recoveries are made.
The NDIC’s actions align with its mandate to maintain financial stability and promote public confidence in the banking sector. By safeguarding depositors’ funds and ensuring a smooth resolution process during bank failures, the NDIC continues to play a vital role in Nigeria’s economic development and in maintaining trust in the country’s financial system.
Call for Affected Depositors to Act
The NDIC is urging all depositors who have not yet received their payments from Heritage Bank to take action immediately. The corporation is encouraging them to come forward and present the necessary documentation to facilitate the payment process.
The ongoing efforts to manage the liquidation of Heritage Bank reflect the NDIC’s broader commitment to protecting depositors and ensuring that such resolutions are handled efficiently and transparently.
