Depositors cite mounting financial hardship, while NDIC says some account holders remain untraced and excess balances will depend on asset and loan recoveries.
Aggrieved depositors of the defunct Heritage Bank Plc have renewed demands for the full settlement of their outstanding funds, putting fresh pressure on the Federal Government, Central Bank of Nigeria and Nigeria Deposit Insurance Corporation to resolve claims more than two years after the bank’s licence was revoked.
The depositors, operating under the Concerned Heritage Bank Depositors Forum, said the prolonged liquidation process had left affected customers in financial uncertainty, with some unable to access funds they said represented years of savings and income.
The CBN revoked Heritage Bank’s banking licence on June 3, 2024, after determining that the lender’s financial position had deteriorated and that there was no realistic prospect of recovery.
Following the revocation, the NDIC assumed responsibility as liquidator, with the mandate to recover the bank’s assets and settle depositors in line with the applicable liquidation process.
However, the depositors, in a statement titled “Our Money, Our Right: Pay Heritage Bank Depositors Their Full Funds Now,” said outstanding balances were continuing to create hardship for customers.
They said some of the affected funds were intended for critical expenses such as school fees, medical treatment, business operations and retirement needs.
The group argued that the issue had therefore moved beyond the failure of a financial institution, with the prolonged wait now affecting household finances and livelihoods.
“Behind every trapped account is a Nigerian family facing real hardship. Let’s join hands to push the campaign. Justice delayed is hardship prolonged,” the group said.
The depositors called on the Federal Government and financial regulators to intensify efforts to resolve outstanding claims and ensure that eligible customers receive their funds.
They also appealed to civil society organisations, the media and other stakeholders to support their campaign, describing the issue as one involving financial justice, depositor protection and confidence in the financial system.
NDIC cites challenges tracing depositors
The NDIC has acknowledged that some Heritage Bank customers have yet to be traced, citing the bank’s inherited customer records as one of the challenges confronting the liquidation process.
Speaking in Lagos on August 5, NDIC Managing Director and Chief Executive Officer, Thompson Sunday, said some depositors had accounts linked to legacy institutions acquired or inherited by Heritage Bank, including Enterprise Bank, Spring Bank and Guardian Express Bank.
Many of those accounts predated the introduction of the Bank Verification Number system, making the identification and verification of some customers more difficult.
“There are depositors that we have not been able to trace, and this is an opportunity for them to come forward. Once they do, we will pay them,” Sunday said.
The NDIC also said depositors whose balances exceed the insured limit would depend on recoveries from the failed bank’s assets for further settlement.
According to Sunday, proceeds from loan recoveries and the disposal of assets belonging to failed banks would be applied toward settling such outstanding balances.
Depositor protection in focus
The renewed dispute underscores the role of deposit insurance in protecting customers when banks fail, while also highlighting the distinction between insured payments and recoveries from a failed institution’s remaining assets.
For depositors whose balances exceed the applicable insured limit, the recovery of loans and realisation of assets can therefore become a critical component of eventual payment.
The Heritage Bank case also highlights the importance of accurate customer records, effective identification systems and timely communication during bank liquidation.
As the process continues, the NDIC’s ability to trace outstanding depositors and maximise recoveries from Heritage Bank’s assets will remain central to efforts to settle unresolved claims.
