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By Tracy Moses
The Nigerian Deposit Insurance Corporation (NDIC) has announced the payment of a second liquidation dividend totaling ₦24.3 billion to eligible depositors of the defunct Heritage Bank Limited.
The payout, sourced from debt recoveries, proceeds from the sale of physical assets and the realization of investments, is targeted at depositors whose account balances exceeded the statutory insured limit of ₦5 million. The development follows the revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria (CBN) on June 3, 2024, over regulatory breaches and financial instability.
After the licence revocation, the NDIC was appointed Liquidator pursuant to Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1) and (2) of the NDIC Act 2023. Upon assuming the role, the Corporation commenced the immediate payment of insured deposits up to the statutory limit from its Deposit Insurance Fund, while simultaneously embarking on asset disposal, debt recovery and investment realization to fund payments to depositors with balances above the insured threshold.
The second liquidation dividend is being paid at the rate of 5.2 kobo per ₦1.00 of outstanding 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 ₦1.00.
According to the NDIC, the payments will be made using depositors’ existing details already captured in its records.
Depositors who have previously received their insured deposits and the first tranche of liquidation dividends will have their alternative bank accounts automatically credited through their Bank Verification Numbers (BVN). Affected depositors are advised to check their accounts for confirmation.
However, depositors who do not have alternative bank accounts, BVNs, or who are yet to claim their insured deposits or the first liquidation dividend have been advised to visit the nearest NDIC office or complete the e-claim form available on the Corporation’s website at https://ndic.gov.ng/claims-
The NDIC explained that a liquidation dividend represents payments made to depositors of a failed bank whose balances exceed the insured limit, and is funded through recovered debts, asset sales and realized investments. It noted that payments to other creditors and shareholders can only be made after all depositors have been fully reimbursed, subject to the availability of funds.
The Corporation stressed that the current disbursement is only the second liquidation dividend, adding that further payments will be made as more assets are recovered and outstanding debts collected. The first liquidation dividend, amounting to ₦46.6 billion and paid at a rate of 9.2 kobo per ₦1.00, was disbursed in April 2025 on a pro-rata basis to depositors with balances above the insured limit.
The NDIC reaffirmed its commitment to the timely recovery of assets, transparent liquidation processes and the prompt reimbursement of depositors of failed banks.