The Nigeria Deposit Insurance Corporation (NDIC) has announced a significant acceleration in the liquidation process of the defunct Heritage Bank, with a firm commitment to commence payments of uninsured deposit balances exceeding N5 million by April 2025. This decisive move underscores the NDIC’s dedication to safeguarding depositor interests and ensuring a swift resolution following the bank’s closure.
While depositors with balances above the insured N5 million threshold have already received their initial insured payouts, the NDIC is now focused on disbursing the remaining balances as liquidation dividends, in strict adherence to its statutory mandate. To expedite this process, the corporation has made substantial strides in asset disposal and debt recovery.
Hawwau Gambo, Acting Head of Communication & Public Affairs at NDIC, emphasised that the corporation is concurrently pursuing asset realisation and risk asset recovery alongside the verification and payment of insured sums. This parallel approach is designed to minimise delays and ensure efficient fund distribution.
Transparency remains paramount, with the NDIC utilising its official website, social media platforms, national newspapers, and broadcast media to disseminate information about the asset disposal process. This comprehensive communication strategy ensures that all stakeholders are kept fully informed.
The NDIC’s strategic focus on simultaneously paying insured depositors and aggressively pursuing asset sales and debt recovery is geared towards streamlining the liquidation process and guaranteeing timely payouts. The anticipated first tranche of liquidation dividends, scheduled for April 2025, will be distributed to uninsured depositors on a pro-rata basis, in accordance with Section 72 of the NDIC Act 2023, which prioritizes deposit liabilities.
This legislative provision ensures that depositors are prioritised over other claimants, including creditors and shareholders, who will only be considered for liquidation dividends after all depositors have been fully compensated.
The NDIC reaffirms its unwavering commitment to protecting depositors’ funds in all licensed banks, assuring the public that the Nigerian banking system remains robust and secure.
