1 day Ago By Guardian Nigeria
While the depositors of defunct Heritage Bank with balances above N5 million have been paid the initial insured sums, the remaining balance over the insured sum will be paid liquidation dividends, the Nigeria Deposit Insurance Corporation (NDIC) has said. A statement by the Acting Head of Communication and Public Affairs of the Corporation, Hawwau Gambo, said payment is by the corporation’s statutory mandate. NDIC hinted that the NDIC has made substantial progress in disposing of the 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.
The corporation added that as a clear demonstration of its 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. To ensure transparency and compliance with legal requirements, the NDIC said it has widely advertised the asset disposal process on its official website, social media platforms and major national newspapers, as well as through radio and television announcements. “The corporation’s approach of simultaneously paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.
With the considerable progress recorded in the asset realization, the Corporation will declare the first tranche of liquidation dividends in April 2025, which will be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023 on the priority of claims,” the NDIC stated. Section 72 of the NDIC Act states: “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 following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.
” It explained that 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..
