The Nigeria Deposit Insurance Corporation (NDIC) is continuing its efforts to recover assets and settle outstanding claims arising from the liquidation of Heritage Bank Limited, following the revocation of the lender’s operating licence in June 2024.
In a progress report published on September 30, the corporation said it had paid ₦54.23 billion to 715,529 insured depositors as of July 31, 2026.
The NDIC also reported that it had declared two tranches of liquidation dividends totalling approximately ₦71.28 billion for uninsured depositors of the defunct bank.
The figures illustrate the two principal stages of the corporation’s responsibilities following a bank failure: reimbursement of eligible insured deposits and the recovery and distribution of funds through the liquidation process.
Under the NDIC Act 2023, eligible depositors of insured institutions are entitled to reimbursement up to the applicable insurance limit. For depositors of commercial banks, the maximum insured amount is ₦5 million per depositor per bank, subject to the applicable rules.
The corporation said it began paying insured deposits within four days of Heritage Bank’s closure, using its partnership with the Nigeria Inter-Bank Settlement System (NIBSS) and Bank Verification Number records to identify eligible customers and credit alternative bank accounts.
Depositors without the required verification details or alternative accounts were directed to submit claims through the NDIC’s official channels or visit its offices to complete the necessary procedures.
The reimbursement of insured deposits is separate from liquidation dividends. Payments under the latter process depend on recoveries from the failed institution’s assets and the distribution of realised funds in accordance with applicable law.
The NDIC said it was continuing to dispose of remaining assets and recover outstanding loans, which constitute a significant part of Heritage Bank’s asset portfolio. It is also working to resolve legal and other obstacles that could delay the liquidation process.
These recovery efforts are important because the amount ultimately available for creditors and other claimants depends on the value of assets realised and the costs and obligations associated with liquidation.
For depositors, the corporation’s progress report provides an update on payments already made, while also highlighting that further recoveries may take time.
The process also carries broader implications for public confidence in the banking system. Prompt reimbursement of insured deposits and transparent management of failed-bank assets are important components of Nigeria’s financial safety net.
The NDIC has reiterated its commitment to ensuring that recoverable funds are distributed transparently and in accordance with the NDIC Act 2023.
The continuing Heritage Bank liquidation underscores the need for effective risk management and regulatory supervision, while demonstrating the role of deposit insurance in limiting the impact of bank failures on customers.
