NDIC Begins Payment of Depositors With Balances Above ₦5 Million From Heritage Bank Liquidation

The Nigeria Deposit Insurance Corporation (NDIC) has confirmed that it will begin paying depositors of the defunct Heritage Bank who had balances exceeding the ₦5 million insurance limit. The first tranche of liquidation dividends, funded by recovered assets, is set to be disbursed in April 2025.

The announcement follows concerns raised by affected depositors over delayed payments after the Central Bank of Nigeria (CBN) revoked Heritage Bank’s license on June 3, 2024, due to financial distress and insolvency.

Key Takeaways From NDIC’s Statement

First Tranche of Payments Begins in April 2025 – Uninsured depositors (those with balances exceeding ₦5 million) will receive partial refunds based on available funds from Heritage Bank’s asset recovery.

Payment on a Pro-Rata Basis – Since the recovered assets are still being liquidated, payments will be made in proportion to available funds rather than full refunds at once.

Creditor & Shareholder Claims Will Be Considered Later – The NDIC emphasized that depositors take priority over all other liabilities. Only after all depositors are reimbursed will creditors and shareholders be considered for liquidation dividends.

Asset Recovery Efforts Underway – The NDIC is actively:
Selling Heritage Bank’s physical assets (buildings, properties, vehicles, etc.)
Recovering outstanding loans and debts owed to the bank
Liquidating other investments linked to the bank

Why Haven’t Some Depositors Received Their Payments Yet?

The NDIC clarified that some depositors with insured deposits (₦5 million and below) are yet to receive their funds due to the following reasons:

Lack of Bank Verification Number (BVN) – Accounts without BVN verification face delays in payment processing.

Post-No-Debit (PND) Restrictions – Accounts flagged for fraud, money laundering, or irregular transactions cannot receive payments until cleared.

Know Your Customer (KYC) Limitations – Some accounts fall under Tier 1 KYC restrictions, which limit the maximum amount of money that can be lodged or withdrawn.

Name Mismatches – Depositors whose names do not match across records must resolve the issue before receiving payment.

Unawareness of Payment – Some depositors may have already been paid but are unaware because the funds were deposited into their alternate bank accounts linked to their BVN.

How to Claim Your Funds If You Haven’t Been Paid

Step 1: Check your alternate bank accounts (linked to your BVN) to confirm if the payment has been deposited.

Step 2: Ensure your BVN is correctly linked to your Heritage Bank account.

Step 3: If your account had PND or KYC restrictions, visit your new bank or the NDIC office to resolve the issue.

Step 4: Contact the NDIC for further assistance via their official website, helpline, or branch offices across Nigeria.

Concerns Over Nigeria’s Banking Sector Stability

The liquidation of Heritage Bank has raised concerns about the stability of other struggling banks in Nigeria, especially as economic challenges persist. The CBN and NDIC have assured the public that no other banks are at immediate risk but continue to monitor the financial health of institutions across the country.

Meanwhile, Heritage Bank customers are advised to remain patient as the liquidation process unfolds, with more payments expected in the coming months.