NDIC begins N46.6bn payout to Heritage Bank depositors

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the disbursement of N46.6 billion as the first tranche of liquidation dividends to depositors of the defunct Heritage Bank, specifically targeting those whose account balances exceeded the insured limit of N5 million.

In a statement released on Sunday and signed by Hawwau Gambo, Acting Head of Communication and Public Affairs, the NDIC announced that the payments began on Friday, April 25, 2025, following the recovery of proceeds from the sale of Heritage Bank’s assets and outstanding loan recoveries.

“This payment represents a significant milestone in our ongoing commitment to ensuring that all depositors affected by Heritage Bank’s collapse are fully reimbursed,” the statement read.

Liquidation dividends, as explained by the NDIC, are payments made to depositors whose funds exceed the maximum insured amount. These dividends are sourced from the realization of a failed bank’s assets and the recovery of debts owed.

For Heritage Bank, the initial dividend payment has been calculated at 9.2 kobo per Naira on a pro-rata basis for each depositor with funds above the insured threshold at the time of the bank’s closure.

To streamline the payment process, the Corporation leveraged the Bank Verification Number (BVN) database to trace and credit alternate bank accounts held by the affected depositors across other financial institutions. This move was aimed at ensuring a seamless and efficient disbursement.

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However, the NDIC urged depositors who have yet to receive their liquidation dividends, despite having previously received their insured deposits, to contact the nearest NDIC office or the Claims Resolution Department through published telephone numbers for immediate assistance.

“For those depositors who do not maintain alternate bank accounts and were not paid the insured amount, they are advised to visit the nearest NDIC office or download, complete, and submit the deposit verification form via the claims page on the Corporation’s website,” the statement added.

The Corporation emphasized that this current payout marks only the first tranche of liquidation dividends. It assured the public that further payments would be made as more recoveries from Heritage Bank’s asset sales and loan portfolio are secured.

The intervention follows the revocation of Heritage Bank’s licence by the Central Bank of Nigeria (CBN) on June 3, 2024. Shortly after the revocation, the NDIC had reimbursed depositors up to the insured limit of N5 million per individual, in line with its statutory mandate.

Earlier this year, the NDIC had announced plans to begin the first tranche of liquidation dividends for uninsured depositors in April 2025, a promise it has now fulfilled with the rollout of payments.

The NDIC reaffirmed its commitment to its core mandate of guaranteeing deposits and promoting financial system stability. It pledged to continue its aggressive recovery efforts to facilitate subsequent dividend payments and ensure that all legitimate claims are settled in full.