Depositors Condemn Partial Payout Plan by NDIC, Demand Urgent Government Intervention

Precious Ugwuzor 

Depositors with sums of N5 million and above in the now-defunct Heritage Bank have decried the Nigeria Deposit Insurance Corporation’s (NDIC) announcement that they will only receive partial reimbursement, describing the development as “an unacceptable outcome that underscores the urgency of the situation.”

Speaking on behalf of the affected depositors over the weekend, Ibrahim Elisha criticised the NDIC’s pro-rata payment scheme, insisting it is grossly inadequate and reflective of severe funding deficiencies that threaten public confidence in the country’s banking system.

“Our current financial predicament requires swift and decisive intervention from the Presidency, the National Assembly, and the Central Bank of Nigeria (CBN),” Elisha said.

According to the group, NDIC’s inability to fully reimburse depositors – even after the liquidation of Heritage Bank’s assets – has now been confirmed by a recent press statement, which the depositors claim was issued under media pressure.

“For nine months, we have endured broken promises, uncertainty, and financial hardship,” Elisha added. “The NDIC’s current payment approach does not meet the needs of depositors and raises significant concerns about the stability and responsiveness of Nigeria’s financial regulatory institutions.”

The depositors referenced previous instances where the CBN had intervened to stabilise the financial sector, including: A N460 billion allocation to First Bank on behalf of Heritage Bank before its eventual revocation; Support for the Providus Bank and Unity Bank merger to preserve financial stability; N700 billion lifeline extended to Unity Bank with favourable repayment terms; and the acquisition of Keystone Bank shares to avert institutional collapse.

“In light of these precedents, it is incomprehensible that the CBN would withhold similar urgent intervention in this case. The inaction risks destabilising the financial ecosystem and imposes needless hardship on depositors who trusted a supposedly stable institution,” Elisha noted.

The group warned that delays in providing bailout funds could erode public trust in financial institutions, discourage investor confidence, and raise international doubts about Nigeria’s commitment to financial and economic stability.

“We urge the Presidency and National Assembly to act immediately by directing the CBN to release the necessary funds to the NDIC for full depositor reimbursement. Prolonged hesitation will deepen the crisis and inflict lasting reputational damage,” they stressed.

“Time is of the essence. The government must step in without delay to restore trust and protect vulnerable depositors. The consequences of inaction are far too grave. Immediate action is non-negotiable,” the statement concluded.