Nigerian Corporation NDIC Set To Pay Liquidation Dividends To Heritage Bank Depositors
The Managing Director/Chief Executive, Bello Hassan, who disclosed this on Wednesday at the NDIC’s Special Day at the ongoing 36th Enugu International Trade Fair, explained that the corporation has made significant progress in disposing of the bank’s physical assets and recovering debts.
The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to pay the first tranche of liquidation dividends to depositors of Heritage Bank, whose operating license was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024.
The Managing Director/Chief Executive, Bello Hassan, who disclosed this on Wednesday at the NDIC’s Special Day at the ongoing 36th Enugu International Trade Fair, explained that the corporation has made significant progress in disposing of the bank’s physical assets and recovering debts.
Hassan, represented by Enugu Zonal Coordinator and Assistant Director, Pamela Robert, stated that the NDIC had been working diligently to ensure that all depositors recover their funds as soon as possible.
“We have commenced preparations to pay the first tranche of liquidation dividends this month – April, 2025,” he said. The corporation has already paid insured deposits of up to ₦5million per depositor within four days of the bank’s closure.
Hassan urged depositors who have not yet received their payments to come forward and provide the necessary documentation, including Bank Verification Numbers (BVN) and alternate bank account numbers, to facilitate payment.
In line with its statutory mandate, the Corporation immediately began the liquidation process, including verification and payment of insured deposits of up to a maximum of ₦5 million per depositor within four days.
“This swift action has enabled the payment of insured amounts to the majority of the bank’s depositors using their Bank Verification Numbers (BVN) as a unique identifier to locate their alternate accounts for payment. Those yet to be paid are largely depositors without BVNs or alternate accounts in other banks, or those with post-no-debit (PND) restrictions.
“Some accounts also have KYC issues, such as Tier 1 limits or name mismatches, while a few depositors may be unaware that payments have been made due to lack of transaction alerts on the alternate accounts. These categories are being contacted by the Corporation for verification and resolution
“I therefore urge depositors of closed banks, particularly Heritage Bank, who have not yet received their payments, to come forward and provide the necessary documentation supporting ownership of the account,” he said.
The NDIC has a proven track record of managing bank failures effectively, having successfully declared full liquidation dividends to depositors of 20 previously failed banks. Hassan reassured depositors that the corporation has the financial and operational capacity to fully reimburse all depositors as recoveries are made.
The NDIC’s efforts are aimed at maintaining financial stability and promoting public confidence in the banking sector. By safeguarding depositors’ funds and ensuring a smooth resolution process in the event of bank failures, the corporation plays a vital role in Nigeria’s economic development.
