Heritage Bank Limited has entered another phase in its liquidation process as the Nigeria Deposit Insurance Corporation, NDIC, announced a second liquidation dividend of N24.3 billion for depositors affected by the bank’s closure. The funds, generated from debt recovery, sale of physical assets, and realisation of investments, will go toward paying depositors whose balances exceeded the N5 million insured limit. The payment is set at a rate of 5.2 kobo per N1.00 on outstanding balances, as provided under Section 72 of the NDIC Act 2023.
Following the revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria, CBN, on June 3, 2024, the NDIC was appointed as Liquidator in line with Section 12(2) of the Banks and Other Financial Institutions Act, BOFIA, 2020, and Sections 55 subsections 1 and 2 of the NDIC Act 2023. The Corporation then took over the bank’s operations to begin the process of reimbursing depositors and recovering assets.
“Upon its appointment, the Corporation commenced the processing of claims and payment of insured deposits up to the statutory limit of N5 million from its Deposit Insurance Fund. The Corporation also immediately commenced the disposal of physical assets, recovery of debts, and realization of investments of the defunct bank,” the NDIC said.
As part of these efforts, the NDIC had declared a first liquidation dividend of N46.6 billion in April 2025. That payment was made at a rate of 9.2 kobo per N1.00 on a pro-rata basis to depositors whose balances exceeded the statutory insured limit of N5 million at the time of closure. The Corporation continued with debt recovery and asset realisation to enable further reimbursement of eligible depositors.
“It is in continuation thereof, that the NDIC has now declared a second liquidation dividend of N24.3 billion. This amount, derived from debt recovery, sale of physical assets, and realisation of investments, will be applied to the payment of uninsured balances for depositors with funds exceeding the N5 million insured limit,” the statement read.
“The second liquidation dividend is payable at a rate of 5.2 kobo per N1.00 on outstanding balances, in accordance with Section 72 of the NDIC Act 2023. This brings the cumulative liquidation dividend declared to date to 14.4 kobo per N1.00,” the Corporation added.
According to the NDIC, payments will be made using depositors’ details already in its records. “Payments will be effected using depositors’ details already in the NDIC records. Eligible depositors, who previously received the insured sum and the first tranche of liquidation dividends, will have their alternative bank accounts automatically credited using their Bank Verification Numbers, BVN,” the Corporation said.
Depositors are advised to check their accounts for confirmation of payment. Those without alternative bank accounts or BVNs, or who have not yet claimed their insured deposits of up to N5 million or the first liquidation dividend, are encouraged to visit the nearest NDIC office or fill the e-claim form available at https://ndic.gov.ng/claims-verification-forms for prompt processing.
Providing further clarification, the NDIC explained that a liquidation dividend refers to the amount paid to depositors of a closed bank whose balances exceed the insured limit, derived from proceeds of asset sales, investment realisation, and debt recovery. “Only after all depositors have been fully reimbursed will payments be made to other creditors, and subsequently to shareholders, subject to the availability of funds,” it said.
The Corporation assured the public that this is only the second liquidation dividend and that more payments would follow as additional assets and debts are recovered. It reaffirmed its commitment to ensuring the timely recovery of funds and the prompt reimbursement of depositors.
