NDIC commences payment of N46bn to Heritage Bank depositors

NDIC commences payment of N46bn to Heritage Bank depositors

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the disbursement of N46.6 billion in liquidation dividends to depositors of the now-defunct Heritage Bank.

This development was announced on Sunday in a statement by the Acting Head of Communication and Public Affairs at NDIC, Hawwau Gambo.

According to Gambo, the funds were generated from the sale of the bank’s assets and the recovery of outstanding debts. She explained that a liquidation dividend refers to payments made to depositors of a closed bank, beyond the maximum insured deposit amount, using proceeds from asset sales and debt recoveries.

Gambo further noted that, “Liquidation dividends may also cover payments to creditors and shareholders once all depositors have been fully reimbursed.”

The payment of the first tranche of the liquidation dividends began on April 25. Gambo revealed that the initial dividend payout was set at 9.2 kobo per naira on a pro-rata basis for depositors with account balances exceeding N5 million.

She added that further disbursements would follow as more assets are realised and additional debts are recovered.

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

To facilitate the refund process, the corporation leveraged depositors’ Bank Verification Numbers (BVN) to trace alternate bank accounts and credit the insured amounts directly. It also used records from the insured deposit payments to process the first tranche of liquidation dividends.

Gambo advised depositors who have balances above N5 million but have not received their dividends to visit the nearest NDIC office. She also urged those without alternative bank accounts who were not paid their insured amounts to do the same or to download the necessary forms from the NDIC’s official website.

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

Reaffirming NDIC’s dedication, Gambo emphasized the corporation’s commitment to the recovery of Heritage Bank’s assets and the reimbursement of all eligible depositors.

 

NDIC commences payment of N46bn to Heritage Bank depositors