The Nigeria Deposit Insurance Corporation (NDIC) has earned rare commendation from the National Assembly, following its swift, transparent, and professional handling of the Heritage Bank liquidation—a move hailed as a benchmark for crisis resolution in Nigeria’s financial services industry.
Speaking at a stakeholders’ retreat in Lagos themed “Navigating Financial Disruptions: Strengthening the NDIC’s Mandate for Economic Stability,” the House of Representatives Committee on Insurance and Actuarial Matters gave glowing feedback on the NDIC’s liquidation process and its dividend payment plan to depositors.
At the centre of the praise is NDIC’s plan to commence payment of liquidation dividends to uninsured depositors of Heritage Bank—starting with a first tranche of 9.2 kobo per Naira—a move that reflects both its liquidity recovery efficiency and customer protection mandate.
“Almost 99% of the insured amounts have been settled,” said Hon. Ahmadu Jaha, Committee Chairman, “and what’s left are mostly cases without proper account documentation. NDIC’s transparency in announcing the dividend payment on a pro-rata basis is commendable and will help restore depositor trust.”
From Insolvency to Integrity: NDIC Steps Up
The NDIC’s swift action following the revocation of Heritage Bank’s license in 2024 has largely helped to calm market jitters, while simultaneously signaling to both the financial community and the public that systemic stability remains a top regulatory priority.
The corporation began paying out insured sums—up to the maximum coverage of ₦5 million—immediately after the license withdrawal. Now, attention has shifted to the recovery and distribution of additional funds owed to depositors whose balances exceeded the insurance threshold.
According to NDIC Managing Director/CEO, Mr. Bello Hassan, aggressive debt recovery efforts and asset disposals are in full swing to ensure all creditor classes—including uninsured depositors—receive payments as allowed under the NDIC Act 2023 (Section 72).
“Our liquidation process aligns with global best practices,” said Hassan. “We’re committed to recovering outstanding debts and selling off the bank’s assets to meet all legitimate claims in the right order of priority.”
Why This Matters: Market Stability, Public Confidence, and Future Failures
The implications go far beyond Heritage Bank. This event serves as a litmus test for NDIC’s capacity to manage bank failures in an increasingly complex and digitised banking environment. It also comes amid heightened financial risk, rising non-performing loans, and growing concerns about the health of Tier-2 financial institutions in Nigeria.
BRANDECONOMY analysis reveals that the Heritage Bank wind-down is the first major bank liquidation under the new administration and offers a roadmap for future regulatory responses. It also highlights the role of proactive legislation, inter-agency collaboration, and clear communication in averting panic.
“This isn’t just about payout—it’s about public confidence,” said Jaha. “The NDIC’s conduct has sent a reassuring message to the market: that the system works, and depositors will not be left stranded.”
Looking Ahead: Lessons for the Financial System
As financial disruptions become more frequent, the NDIC’s approach—marked by speed, clarity, and fairness—could offer a template for early intervention in future bank crises. More so, it underscores the importance of building a robust depositor protection framework, especially for MSMEs, savers, and digital-only banks.
The retreat also served to deepen collaboration between lawmakers and the NDIC, with both parties pledging to review and refine the regulatory tools available to preempt or manage similar episodes in the future.
Editorial Perspective:
While the banking public often associates regulation with red tape, NDIC’s handling of the Heritage Bank episode reveals how responsive regulation can become a stabilising force—not just after the fall, but as a preventive mechanism. The Federal Government must now ensure that debt recovery processes are legally enforced and that similar interventions across microfinance and fintech sectors are equally swift and transparent.
