The Nigeria Deposit Insurance Corporation (NDIC) has declared full payment of liquidation dividends to depositors of 20 failed banks in Nigeria.
Managing Director of NDIC, Mr Bello Hassan, stated this on Wednesday during the agency’s special day at the ongoing 36th Enugu International Trade Fair that the bank.
Hassan represented by the South East Zonal Coordinator of NDIC, Pamela Robert, also disclosed that the Corporation has commenced preparations to pay the first tranche of liquidation dividends for the month of April, 2025.
He stated that the NDIC is committed to ensuring a stable financial environment that safeguards depositors funds, build public confidence to enable businesses to thrive and contribute to the nation’s economic development.
Hassan clarified that, following their statutory mandate, the NDIC as a liquidator, is responsible for winding down the affairs of the failed bank, reimbursing insured depositors, recovering debts owed to the bank, and realising its assets for the payment of depositors and other claimants.
“For over three decades, the NDIC has played a vital role in safeguarding depositors and fortifying the financial system. Our primary mandate includes insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process in the event of bank failures,” Hassan said.
“We are dedicated to protecting bank deposits from the adverse effects of bank failures. In collaboration with the Central Bank of Nigeria (CBN), we strive to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions.”
He added that the NDIC has consistently played a crucial role in maintaining financial stability by ensuring depositors receive prompt compensation when banks fail.
“A recent example is the revocation of Heritage Bank’s operating license by the Central Bank of Nigeria (CBN) on June 3, 2024. In line with its statutory mandate, the Corporation immediately began the liquidation process, including verification and payment of insured deposits of up to a maximum of ₦5 million per depositor within four days.
“This swift action has enabled the payment of insured amounts to the majority of the bank’s depositors using their Bank Verification Numbers (BVN) as a unique identifier to locate their alternate accounts for payment.
“Those yet to be paid are largely depositors without BVNs or alternate accounts in other banks, or those with post-no-debit (PND) restrictions.
“Some accounts also have KYC issues, such as Tier 1 limits or name mismatches, while a few depositors may be unaware that payments have been made due to lack of transaction alerts on the alternate accounts. These categories are being contacted by the Corporation for verification and resolution
“Under this mandate, depositors are reimbursed up to the maximum insured limit of ₦5 million per depositor per bank. For depositors with balances above ₦5 million, the NDIC pays the insured sum first, while the excess amounts—referred to as uninsured deposits—are reimbursed as liquidation dividends.
“The NDIC has successfully declared full (100%) liquidation dividends to depositors of 20 previously failed banks. This reflects our unwavering commitment to depositor protection and our proven capacity to manage bank failures effectively.”
He said the Corporation has made substantial progress in disposing of the defunct Heritage Bank’s physical assets and recovering some of its debts.
“The approach of paying insured deposits while concurrently realising assets and recovering loans ensures that no depositor is left behind. As more recoveries are made, subsequent tranches of liquidation dividends will follow. Our record in bank liquidation is reassuring,” he said.
“I therefore urge depositors of closed banks, particularly Heritage Bank, who have not yet received their payments, to come forward and provide the necessary documentation supporting ownership of the account, including BVN, and an alternate bank account number for payment of the insured sum. Claims can be submitted through our website, email, social media platforms, or by visiting any of our Zonal Offices.”
