Depositors at the defunct Heritage Bank with balances exceeding the N5 million insurance cap are set to begin receiving partial refunds in April, according to the Nigeria Deposit Insurance Corporation (NDIC).
The development follows months of uncertainty for customers who held significant balances at the lender before its abrupt closure.
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The Central Bank of Nigeria (CBN) revoked Heritage Bank’s banking licence on 3 June 2024, citing concerns about the bank’s financial condition. The NDIC was appointed as liquidator in line 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 a Sunday statement signed by its Acting Head of Communication and Public Affairs, Hawwau Gambo, the NDIC confirmed that it had made progress in recovering the bank’s assets and would begin the first tranche of liquidation dividends next month.
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“With the considerable progress recorded in the asset realisation, the Corporation will declare the first tranche of liquidation dividends in April 2025, which will 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 statement said.
While depositors with balances below N5 million have already been reimbursed, those with higher amounts have only received the insured portion to date.
“The remaining balance in excess of the insured sum of the N5 million already reimbursed will be paid as liquidation dividends in accordance with the Corporation’s statutory mandate,” the NDIC said.
The corporation said it had commenced the realisation of Heritage Bank’s physical and investment assets, alongside an “aggressive recovery of the risk assets,” in order to fund repayments.
“Following the revocation of Heritage Bank’s banking licence… the Corporation immediately commenced the bank’s liquidation process, including the verification and payment of insured deposits to all depositors,” the statement said.
However, it acknowledged challenges in reaching some insured depositors due to incomplete Know Your Customer (KYC) information, post-no-debit restrictions, name mismatches, or lack of alternate bank accounts.
“Some payments may have been processed without their immediate awareness,” the NDIC added, urging depositors to check other bank accounts they may hold.
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Under Nigerian law, deposit liabilities take precedence in bank liquidation. The NDIC reiterated this, citing Section 72 of its Act: “Deposit liabilities shall have priority over all other liabilities of the insured institution.” As a result, other claimants—such as creditors and shareholders—will be considered for payment only after all depositors have been fully reimbursed.
The corporation sought to reassure the public about the safety of Nigeria’s banking sector. “Members of the public are enjoined to continue their banking activities without fear, as all other banks remain safe and sound,” the statement said.
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