By Jennete Ugo Anya
Nearly 20 months after the closure of Heritage Bank Limited, depositors with balances above the statutory insured threshold are set to receive another round of reimbursements as the Nigeria Deposit Insurance Corporation (NDIC) declared a second liquidation dividend of N24.3 billion.
The payment follows the revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria (CBN) on June 3, 2024, after which NDIC was appointed liquidator in line with the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023. Since taking over, the corporation has been managing the winding-down process, including reimbursing depositors, recovering loans, and disposing of the defunct bank’s assets.
What the New Payment Means
The newly declared N24.3 billion represents the second liquidation dividend payable to depositors whose account balances exceeded the N5 million insured limit at the date of closure. The payment will be made at a rate of 5.2 kobo per N1.00 on outstanding uninsured balances, in accordance with Section 72 of the NDIC Act 2023.
This brings the cumulative liquidation dividend paid so far to 14.4 kobo per N1.00, following an earlier N46.6 billion first liquidation dividend declared in April 2025, which was paid at 9.2 kobo per N1.00 on a pro-rata basis.
According to NDIC, the funds for the second tranche were generated through continued debt recovery efforts, the sale of physical assets, and the realisation of investments belonging to the defunct bank.
How Depositors Will Be Paid
Payments will be effected automatically using depositors’ details already captured in NDIC records. Eligible depositors who have previously received both their insured deposits and the first liquidation dividend will have their alternative bank accounts credited through their Bank Verification Numbers.
Depositors are advised to monitor their accounts for confirmation of payment.
Those without alternative bank accounts or BVNs, as well as depositors who are yet to claim their insured sum of up to N5 million or the first liquidation dividend, have been asked to visit the nearest NDIC office nationwide or complete the e-claim form available on the corporation’s website for prompt processing.
Understanding Liquidation Dividends
A liquidation dividend refers to payments made to depositors of a failed bank whose balances exceed the statutory insured limit, drawn from proceeds realised through asset sales, investment liquidation, and debt recovery.
Under Nigeria’s liquidation framework, all depositors must be fully reimbursed before any payments are made to other creditors. Shareholders are only considered last, and only if sufficient funds remain after all other obligations have been settled.
More Payments May Follow
NDIC has stressed that the N24.3 billion payout represents only the second stage in the liquidation process. Further liquidation dividends may be declared, subject to the successful recovery of outstanding loans and the disposal of remaining assets of Heritage Bank.
In a statement issued by Hawwau Gambo, Head of the Communication and Public Affairs Department at NDIC, the corporation reaffirmed its commitment to transparency and timely reimbursement of depositors, noting that recovery efforts are ongoing and aimed at maximising returns for affected customers.
Reassurance to the Banking Public
The latest payout reinforces NDIC’s role as a financial safety net within Nigeria’s banking system, particularly for depositors caught in bank failures. While liquidation is often a lengthy process, the steady release of dividends signals progress in the Heritage Bank resolution and offers some relief to depositors who have waited for additional recovery of their funds.
For further enquiries, NDIC has directed depositors to contact its Claims Resolution Department or reach out through its dedicated email and telephone lines during official working hours.
