The Nigeria Deposit Insurance Corporation (NDIC) has commenced a N46.6 billion payout to top depositors of the defunct Heritage Bank, following the revocation of the bank’s operating license by the Central Bank of Nigeria (CBN) in June 2024.
The announcement, made on Monday, April 28, 2025, and reported by Vanguard Nigeria and Punch Nigeria, targets depositors with balances exceeding N5 million, including corporate entities, public institutions, and high-net-worth individuals. The move aims to restore confidence in Nigeria’s banking sector and mitigate the financial fallout from Heritage Bank’s collapse.
Heritage Bank, once a prominent mid-tier lender, was shut down due to persistent liquidity issues, poor corporate governance, and failure to meet regulatory capital requirements, as stated by the CBN. The NDIC, tasked with protecting depositors, initially paid out N5 million per individual depositor with balances up to that amount, covering 2.3 million accounts by December 2024. The current phase focuses on approximately 15,000 depositors with larger balances, including state governments, schools, and businesses, whose funds were trapped in the bank’s 320 branches nationwide.
NDIC Managing Director Bello Hassan, speaking at a press briefing in Abuja, outlined the payout process, which began with verification exercises in March 2025. Depositors were required to submit proof of funds, such as bank statements and identification, through an online portal or at NDIC offices in Lagos, Abuja, and Port Harcourt. “We have mobilized N46.6 billion to ensure no depositor is left behind,” Hassan said, adding that payments are being processed via the Bank Verification Number (BVN) system to alternate banks, including Access Bank and Zenith Bank, designated as agent banks. Corporate depositors, such as the Kebbi State Government with N1.2 billion in Heritage accounts, will receive funds in tranches based on liquidity assessments.
The NDIC’s efforts are funded by its Deposit Insurance Fund, bolstered by contributions from commercial banks and CBN loans. However, challenges remain, with some depositors reporting delays due to incomplete documentation or discrepancies in account records. The collapse of Heritage Bank, which had assets worth N1.9 trillion at its peak, affected over 4,000 employees and disrupted local economies, particularly in Lagos and Rivers States. The NDIC has recovered N700 billion in assets through liquidation, including properties and loan repayments, to offset the payout costs.
The CBN Governor, Olayemi Cardoso, praised the NDIC’s swift response, noting that the payouts align with Nigeria’s Financial System Stability Strategy. The banking sector, which faced a similar crisis with Skye Bank in 2018, has seen tightened regulations, with the CBN mandating a N200 billion minimum capital for national banks by 2026. The NDIC plans to complete the Heritage Bank payouts by Q3 2025, pending court approvals for asset sales. Depositors have been urged to verify their claims promptly to avoid forfeiture, marking a critical step in resolving one of Nigeria’s largest banking failures.
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