BREAKING: Defunct Heritage Bank Depositors To Get First Tranche Of Liquidation Dividend April- NDIC

The Nigeria Deposit Insurance Corporation said on Sunday that with considerable progress recorded in the asset realization, it would declare the first tranche of liquidation dividends of depositors of defunct Heritage Bank in April 2025.

This, it said, would be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023 on the priority of claims.

The referenced section states that: “Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.”

In a statement issued in response to concerns raised by depositors of the defunct Heritage Bank whose balances exceed the maximum deposit insurance limit of N5m, the NDIC clarified that it has intensified efforts to ensure timely payments.

Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria on June 3, 2024, the NDIC was appointed as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023.

In line with its statutory mandate, the Corporation immediately commenced the bank’s liquidation process, including the verification and payment of insured deposits to all depositors.

It said that significant progress has been made in reimbursing the insured deposits of the N5m maximum per depositor, noting that depositors yet to be paid their insured deposits are largely those without Bank Verification Number (BVN) or alternate accounts in other banks to enable the Corporation fetch the accounts from the Nigeria Inter-Bank Settlement System (NIBSS) database to effect payment.

Other depositors in this category are those with post no debit (PND) restrictions on their accounts. Additionally, the statement said some accounts have Know Your Customer (KYC) limitations such as Tier 1 accounts that places restrictions on the maximum lodgment of funds, while others have name mismatches that require resolution.

It said, “Some depositors who have been paid may also be unaware that they have received payments due to lack of mobile phone transaction alerts on their alternate accounts into which the insured sums were paid by the NDIC.

“Therefore, depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate awareness.

“While depositors with balances above N5m have been paid the initial insured sums of the N5m, the remaining balance in excess of the insured sum of the N5m already reimbursed, will be paid as liquidation dividends in accordance with the Corporation’s statutory mandate.”

The NDIC stated further that it has made substantial progress in disposing the physical assets and recovering some of the debts of the failed bank to ensure that depositors with balances above the maximum insured limit receive their payments as soon as possible.

“As a clear demonstration of this commitment, the Corporation commenced the realization of physical assets and investments as well as aggressive recovery of the risk assets, concurrently with the verification and payment of insured sums.

“To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, and major national newspapers, as well as through radio and television announcements.

“The Corporation’s approach of simultaneously paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays,” it added.

The NDIC in the statement also reiterated its commitment to the safety of depositors’ funds in all licensed banks.

“Members of the public are enjoined to continue their banking activities without fear, as all other banks remain safe and sound,” it concluded.