NDIC begins payment to Heritage Bank's large depositors

The Nigeria Deposit Insurance Corporation (NDIC) has started payment of N46.6 billion in liquidation dividends to depositors of the defunct Heritage Bank.

This was contained in a statement on Sunday by Hawwau Gambo, acting head, Communication and Public Affairs.

She said the funds were realised from sales of the bank’s assets and recovery of debts owed.

Ms Gambo explained that a liquidation dividend is paid to depositors of a closed bank beyond the maximum insured limit, using proceeds from asset sales and debt recovery.

Stay Ahead with Premium Times

Add as a preferred source on Google

She added that liquidation dividends may also cover payments to creditors and shareholders once all depositors have been fully reimbursed.

The NDIC began payment of the first tranche of liquidation dividends on 25 April.

According to Ms Gambo, the initial dividend is paid at 9.2 kobo per Naira on a pro-rata basis to depositors with balances above N5 million.

She noted that further payments would be made as more assets of the defunct bank are realised and outstanding debts recovered.

Following the revocation of Heritage Bank’s licence by the Central Bank of Nigeria (CBN) on 3 June 2024, NDIC immediately reimbursed insured deposits up to N5 million.

NDIC used depositors’ Bank Verification Numbers (BVN) to locate alternate accounts and automatically credit the insured amounts to ensure a seamless process.

The Corporation also used existing records from insured payments to disburse the first tranche of liquidation dividends.

“Depositors with balances exceeding N5 million who did not receive their liquidation dividends should visit the nearest NDIC office.

READ ALSO: MTN Nigeria vests 536,327 more shares in employees

“Depositors without alternative bank accounts, who were not paid the insured amount, should also visit NDIC offices or download forms from

“Depositors must complete and submit a deposit verification form to receive their insured amounts and, where applicable, the first tranche of dividends,” Gambo said.

She reiterated NDIC’s commitment to ensuring the recovery of assets and the reimbursement of all eligible depositors. (NAN)