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The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to initiate the first phase of liquidation dividend payments for uninsured depositors of the defunct Heritage Bank in April 2025. This development follows significant progress in asset realization and debt recovery efforts.
Heritage Bank’s banking license was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024, due to financial instability, leading to NDIC’s appointment as the official liquidator. Since then, the corporation has been engaged in reimbursing insured depositors, with payouts capped at a maximum of N5 million per depositor. Depositors with balances exceeding this limit have received the insured portion, while the remaining amounts are set to be disbursed through liquidation dividends.
As part of its liquidation strategy, NDIC has been actively recovering outstanding debts and realizing physical assets to expedite payments. The corporation has ensured transparency in the asset disposal process by publicizing relevant details on its official website, social media platforms, national newspapers, radio, and television.
In compliance with Section 72 of the NDIC Act 2023, which mandates the settlement of deposit liabilities before other obligations, the NDIC will distribute the first tranche of liquidation dividends to uninsured depositors on a pro-rata basis. Payments to other claimants, including creditors and shareholders, will only be considered after depositors have been fully reimbursed.
However, NDIC has highlighted challenges in reaching some insured depositors due to incomplete Know Your Customer (KYC) details, post-no-debit restrictions, name discrepancies, or lack of alternate bank accounts. Affected depositors are encouraged to check their alternative accounts, as some payments may have already been processed without their immediate knowledge.
Reaffirming its commitment to safeguarding Nigeria’s banking sector, the NDIC assures the public of continued financial stability and encourages confidence in the nation’s banking system.
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