In a landmark development marking progress in Nigeria’s banking resolution efforts, the Nigeria Deposit Insurance Corporation (NDIC) has announced the successful disbursement of ₦54.62 billion to 691,418 depositors of the now-defunct Heritage Bank. The disbursement comes just over a year after the Central Bank of Nigeria (CBN) revoked the bank’s operating licence in 2024 due to critical regulatory breaches and insolvency concerns.
The NDIC also declared a liquidation dividend of 9.2 kobo per naira for uninsured depositors, marking an important milestone in bank liquidation proceedings and signaling a commitment to financial stability and depositor protection.
Heritage Bank’s licence withdrawal followed persistent financial instability, failure to meet obligations to customers, and a capital base that fell below regulatory standards. In the aftermath, the NDIC was appointed as the official liquidator to ensure that depositors and stakeholders were protected within the provisions of the NDIC Act 2023.
According to the NDIC’s newly appointed Managing Director/Chief Executive, Mr. Thompson Sunday, the payout reflects the agency’s commitment to safeguarding the banking public and maintaining confidence in Nigeria’s financial system.
“Within one year of Heritage Bank’s closure, the NDIC has paid over ₦54.6 billion to affected depositors. This includes both insured and part of the uninsured categories,” Sunday stated during a recent courtesy visit to the CBN headquarters in Abuja.
He described the success of the payout as a testament to the efficiency of NDIC’s liquidation framework and a reflection of improved synergy between the nation’s financial regulatory agencies.
During the meeting with CBN Governor Yemi Cardoso, the NDIC boss called for the development of a joint crisis preparedness and resolution framework to enhance systemic resilience. He emphasized that such collaboration would improve Nigeria’s response to potential shocks in the financial system and facilitate faster intervention in distressed institutions.
Governor Cardoso expressed optimism about a stronger NDIC-CBN partnership, acknowledging the increasing need for coordination in light of growing economic uncertainties.
“This visit highlights our mutual commitment to financial system stability. The CBN counts on NDIC’s support as we navigate today’s financial challenges,” Cardoso said.
He further commended the NDIC for its swift response to the Heritage Bank case and its reform initiatives aimed at improving deposit insurance coverage.
The NDIC also acknowledged key operational challenges. Among them is the lack of a unified identifier for corporate accounts, which hinders effective verification during liquidation processes. The agency also identified difficulty in premium collection from some insured institutions that do not maintain accounts with the CBN.
To address these issues, Sunday reiterated the NDIC’s intent to work closely with the apex bank, particularly under the umbrella of the Financial Services Regulation Coordinating Committee (FSRCC). CBN Director of Financial Policy and Regulation, Mrs. Rita Sike, added that enhancements to the Credit Risk Management System—including onboarding of Other Financial Institutions (OFIs)—are underway.
As part of its strategic realignment, the NDIC is developing a new corporate plan that aligns with its risk minimization mandate, while phasing out its current strategy, which expires at the end of 2025. The agency also plans to introduce a target funding framework to bolster the deposit insurance fund in line with international best practices.
Mr. Sunday concluded by reaffirming NDIC’s mission: “We are committed to proactive intervention, risk-based supervision, and effective resolution mechanisms. The recent payout to Heritage Bank depositors demonstrates that trust in Nigeria’s financial institutions is not misplaced.”
The NDIC’s swift and sizeable payout to Heritage Bank depositors not only restores confidence in Nigeria’s deposit insurance scheme but also underscores the importance of inter-agency collaboration in mitigating systemic risks. As Nigeria works to stabilize its financial ecosystem, reforms, and preparedness frameworks such as those proposed by the NDIC will be critical to ensuring depositor protection and economic resilience.