The NDIC has announced the disbursement of ₦54.6 billion to verified depositors of the now-defunct Heritage Bank Plc, marking a significant milestone in the Corporation’s mandate to protect depositors.
The Nigeria Deposit Insurance Corporation (NDIC) has announced the disbursement of ₦54.6 billion to verified depositors of the now-defunct Heritage Bank Plc, marking a significant milestone in the Corporation’s mandate to protect depositors and maintain public confidence in the banking system.
Speaking at the formal presentation ceremony held at the NDIC Head Office in Abuja, the Managing Director and Chief Executive of the Corporation, Mr. Bello Hassan, described the development as a testament to the Corporation’s unwavering commitment to ensuring that depositors do not lose their funds in the event of a bank failure.
“This disbursement underscores the critical role deposit insurance plays in stabilising our financial system. We will continue to ensure that every kobo owed to depositors within the insured limit is paid promptly and transparently.”
— Mr. Bello Hassan, NDIC Managing Director & CEO
Background: Heritage Bank Licence Revocation
Heritage Bank’s operating licence was revoked by the Central Bank of Nigeria (CBN) in June 2024 following a protracted period of financial instability, persistent capital adequacy shortfalls, and failure to meet regulatory benchmarks. Upon revocation, the NDIC was immediately appointed as the liquidator and moved swiftly to protect depositors.
The Corporation deployed a rapid verification exercise across all branches, leveraging its Integrated Insured Deposit Payment System to match depositor records against the bank’s books. A total of 3.1 million eligible depositors were identified, of whom 2.84 million have now been fully reimbursed up to the maximum insured limit of ₦5,000,000 per depositor.
Payment Channels and Timeline
Reimbursements were made directly into depositors’ accounts at their new banks of choice via electronic fund transfer. The exercise was completed in three tranches. The first tranche — covering all depositors with balances of ₦500,000 and below — was concluded within 72 hours of the revocation. The second and third tranches were processed over the following six weeks.
What Happens to Deposits Above the Insured Limit?
Depositors whose balances exceed the ₦5,000,000 insurance cap are classified as creditors of the estate of Heritage Bank in liquidation. The NDIC will pursue recovery of the bank’s assets and distribute any proceeds pro-rata to this group of creditors. Depositors are advised to register their uninsured claims on the Corporation’s official portal.
Broader Impact on Public Confidence
Financial analysts have praised the speed of the NDIC’s response, noting that the swift payout has helped avert the kind of panic withdrawal that typically follows bank failures in emerging markets. Customer surveys indicate that over 87% of respondents retained their savings in formal banking institutions after receiving their insured payouts.
Depositors of Heritage Bank who are yet to receive their payments or have queries about their accounts are encouraged to visit any NDIC zonal office or contact the Corporation’s helpdesk at 0800-NDIC-HELP.