The Nigeria Deposit Insurance Corporation, NDIC, has announced it will commence the payment of the first tranche of liquidation dividends to depositors of Heritage Bank in April 2025.
This was disclosed by NDIC Managing Director, Bello Hassan, on Wednesday during the NDIC Special Day at the ongoing 36th Enugu International Trade Fair.
Represented by the NDIC South-East Coordinator, Pamela Robert, Hassan explained that the process was part of NDIC’s mandate to protect depositors and maintain stability in the financial system.
According to him, NDIC is collaborating closely with the Central Bank of Nigeria, CBN, to enforce banking regulations and exercise oversight over insured financial institutions.
“We have commenced preparations to pay the first tranche of liquidation dividends this month of April,” Hassan stated.
The Central Bank of Nigeria revoked the operating licence of Heritage Bank on June 3, 2024, citing regulatory breaches and failure to improve its financial health.
Hassan explained that NDIC’s approach ensures that insured depositors are paid promptly while the corporation recovers loans and realises assets from the failed bank.
“This approach ensures that no depositor is left behind as we continue to recover debts and dispose of assets,” he noted.
He added that subsequent tranches of liquidation dividends would be paid as further recoveries are made.
“Our record in bank liquidation is reassuring. NDIC has successfully declared full liquidation dividends to depositors of 20 previously failed banks,” he said.
He urged depositors of Heritage Bank who have not yet been paid to come forward with the required documentation to claim their funds.
“Depositors of closed banks, particularly Heritage Bank, should provide necessary documents proving ownership of their accounts,” Hassan concluded.
The NDIC reiterated its commitment to depositor protection and effective management of failed financial institutions.
