NDIC to commence dividend payments to Heritage Bank shareholders in April

The Nigeria Deposit Insurance Corporation (NDIC) says it will commence liquidation dividend payments to Heritage Bank shareholders in April.

According to NAN on Sunday, Hawwau Gambo, acting head of communication and public affairs at the NDIC, said that after the corporation declares the first tranche of liquidation dividends from Heritage Bank’s asset realisation in April, payments to uninsured depositors will begin.

The Central Bank of Nigeria (CBN) revoked Heritage Bank’s banking licence on June 3, 2024, raising questions about how depositors and shareholders would recover their funds.

In September, NDIC said 84 percent of Heritage Bank depositors with BVN-linked accounts had been paid.

Two months later, the NDIC asked customers who had not yet received payment to come forward.

Speaking further, Gambo said the NDIC will make payments on a pro-rata basis, as provided in Section 72 of the NDIC Act 2023, and is working to ensure timely disbursements.

“For clarity, the referenced section states that where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria (CBN) following the revocation of its licence, the assets of the insured institution shall be available to meet its deposit liabilities,” she said.

“Such deposit liabilities shall have priority over all other liabilities of the insured institution.

“The NDIC has made substantial progress in disposing of physical assets and recovering some of the debts of the failed bank to ensure that depositors with balances above the maximum insured limit receive their payments as soon as possible.

“As a clear demonstration of this commitment, the corporation commenced the realisation of physical assets and investments, as well as aggressive recovery of the risk assets, concurrently with the verification and payment of insured sums.

“Consequently, other claimants of the failed Heritage Bank, including creditors and shareholders, will be considered for payment of liquidation dividends only after all depositors have been fully reimbursed.”

‘NDIC YET TO PAY INSURED DEPOSITORS OVER BVN, ACCOUNT RESTRICTIONS’

Gambo explained that the NDIC is yet to pay insured depositors whose accounts have post-no-debit (PND) restrictions, those without a bank verification number (BVN), or those who have no alternate accounts in other banks.

“Additionally, some accounts have Know Your Customer (KYC) limitations, such as Tier 1 accounts that place restrictions on the maximum lodgment of funds, while others have name mismatches that require resolution,” she said.

“Some depositors who have been paid may also be unaware that they have received payments due to a lack of mobile phone transaction alerts on their alternate accounts into which the insured sums were paid by the NDIC.”

Gambo advised depositors to check their alternate bank accounts as some payments may have been processed without their immediate knowledge.