NDIC Completes ₦54.62 Billion Heritage Bank Payout as Liquidation Progresses

The Nigeria Deposit Insurance Corporation (NDIC) has concluded the disbursement of ₦54.62 billion to 691,418 depositors of the defunct Heritage Bank.

The payout comes less than a year after the Central Bank of Nigeria (CBN) revoked Heritage Bank’s operating license, citing regulatory breaches and insolvency concerns. With the latest disbursement, NDIC has closed a key chapter in the resolution timeline, offering relief to thousands of affected depositors.

In a statement released by its Communications & Public Affairs unit, the NDIC also confirmed a declared liquidation dividend of 9.2 kobo per naira for uninsured depositors.

During a courtesy visit to the CBN headquarters in Abuja, NDIC’s newly appointed Managing Director, Thompson Sunday, commended the apex bank’s reform agenda under Governor Olayemi Cardoso, particularly ongoing efforts to stabilise the naira and recapitalise commercial banks.

He also used the engagement to outline NDIC’s new strategic direction with a focus on risk minimisation and proactive intervention.

“We’re currently phasing out our existing strategy which expires this year,” Sunday said. “A new corporate framework is underway, aligned with the amended NDIC Act of 2023, to enhance systemic protection.”

The NDIC chief acknowledged longstanding operational challenges in the sector, including the absence of a unified identifier for corporate accounts and difficulties collecting premiums from institutions without CBN accounts.

He proposed the creation of a joint crisis response framework between the NDIC and CBN to preempt systemic threats and accelerate intervention timelines.

Responding to the proposal, CBN Director of Financial Policy and Regulation, Rita Sike, confirmed that such a framework could be implemented under the Financial Services Regulation Coordinating Committee (FSRCC).

She further revealed plans to upgrade the apex bank’s Credit Risk Management System (CRMS) by integrating the Global Standing Instruction (GSI), a move that will broaden oversight to include Other Financial Institutions (OFIs).

Governor Olayemi Cardoso lauded the NDIC leadership for the swift resolution of Heritage Bank and reaffirmed the CBN’s willingness to deepen inter-agency collaboration.

“Our shared vision for financial system stability requires a forward-looking partnership between both institutions,” Cardoso said.

The liquidation of Heritage Bank, once considered a mid-tier financial player, sends a strong signal to the market that regulatory institutions are prepared to act decisively in safeguarding the financial system.

With over ₦54 billion paid out in under 12 months, the NDIC’s performance in this case is being watched closely as a benchmark for future resolutions.

The meeting also had in attendance senior executives from both institutions, including NDIC’s Director of Legal, Olufemi Kushimo; Director of Human Resources, Yakubu Shehu; and CBN officials from Compliance and Communications departments.

As the financial system evolves under tightened regulatory oversight, both the NDIC and CBN appear poised to recalibrate their frameworks to better manage risk, respond to crises, and reinforce depositor confidence in the banking sector.