NDIC clarifies delays in reimbursing uninsured depositors of defunct Heritage bank  - Businessday NG (2025)

…Corporation says physical assets disposal, debt recovery nearing completion

…first tranche of liquidation dividends expected in April

The Nigeria Deposit Insurance Corporation (NDIC) has provided clarity on the delays surrounding the payment of uninsured sums to depositors of Heritage Bank, which was placed in liquidation following the revocation of its banking license by the Central Bank of Nigeria (CBN) on June 3, 2024.

In a statement issued onSunday, the 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 full payment as the liquidation process continues.

Since it was appointed the liquidator under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023, the NDIC has been working to verify depositors’ claims and pay the insured amounts up to the maximum N5 million per depositor.

The Corporation confirmed that most of these insured payments have been completed, but some depositors remain unpaid due to issues with their accounts.

These include missing Bank Verification Numbers (BVN), restrictions on certain accounts, including maximum lodgment of funds, and name mismatches that need to be resolved.

The NDIC further noted that some depositors who have already received payments may not be aware due to a lack of transaction alerts on their alternate bank accounts.

The Corporation encouraged depositors to check their accounts, as many have been reimbursed without being immediately notified.

As for depositors whose balances exceed the N5 million limit, the NDIC has initiated the payment of liquidation dividends in line with its statutory mandate.

These payments, it assured, will be made once the liquidation process is fully underway, with proceeds from the sale of the bank’s physical assets and the recovery of outstanding debts.

The NDIC emphasized that its aggressive asset sales and debt recovery efforts are progressing well, and the first tranche of liquidation dividends is expected to be distributed to uninsured depositors in April 2025 on a pro-rata basis.

To ensure transparency, the NDIC has been actively publicizing its asset disposal efforts across multiple platforms, including its website, social media channels, and through traditional media outlets such as newspapers, radio, and television.

It reiterated its commitment to the safety of depositors’ funds and assured the public that all licensed banks in Nigeria remain safe.

Furthermore, the Corporation clarified that the priority of claims in the liquidation process follows a clear legal framework. As per Section 72 of the NDIC Act, the assets of the failed Heritage Bank will first be used to meet deposit liabilities, with payments to other claimants, such as creditors and shareholders, occurring only after all depositors have been fully reimbursed.

While the liquidation process continues, the NDIC said that its dual approach of paying insured depositors while aggressively recovering assets aims to ensure that all depositors, including those with uninsured balances, receive their funds in a timely and efficient manner.