The Nigeria Deposit Insurance Corporation (NDIC) has announced a N24.3 billion second liquidation dividend for depositors of the defunct Heritage Bank Limited whose account balances exceeded the statutory insured limit of N5 million at the time of the bank’s closure.
The payment forms part of ongoing efforts to reimburse uninsured depositors through the recovery of assets, debt realisation, and sale of investments following the bank’s licence revocation by the Central Bank of Nigeria (CBN).
Heritage Bank’s operating licence was revoked by the CBN on June 3, 2024, due to financial irregularities and failure to meet regulatory requirements, prompting the NDIC to take over as liquidator under the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023.
Immediately after the revocation, the NDIC began the process of verifying and paying insured deposits of up to N5 million per depositor from its Deposit Insurance Fund, while also pursuing asset disposal and debt recovery to generate funds for uninsured reimbursements.
In April 2025, the corporation declared the first liquidation dividend of N46.6 billion, paid to uninsured depositors at a rate of 9.2 kobo per N1.00 on outstanding balances above the insured limit.
In its latest statement, the NDIC said the second liquidation dividend of N24.3 billion was realised through additional debt recoveries, sale of physical assets, and the realisation of investments from the liquidation process. The payout will be made at a rate of 5.2 kobo per N1.00 on the outstanding uninsured balances.
With the new tranche, the cumulative liquidation dividend declared to date stands at 14.4 kobo per N1.00 on eligible uninsured amounts.
Payments will be affected automatically using depositors’ existing records and Bank Verification Numbers (BVNs), with credits going into alternative bank accounts previously provided. Depositors are urged to check their accounts to confirm receipt.
Those without alternative bank accounts or BVNs, or who have not yet claimed their insured deposits or the first liquidation dividend, are advised to visit the nearest NDIC office or complete the e-claim form on the NDIC website for processing.
The declaration of this second liquidation dividend marks a significant step in mitigating the financial impact of Heritage Bank’s closure on depositors with uninsured balances. It signals progress in the liquidation process and reinforces the role of the NDIC in safeguarding depositor interests, especially in cases where banks fail.
For urban consumers and investors, the continued release of liquidation dividends may help restore confidence in Nigeria’s banking safety nets, underscoring the importance of deposit insurance mechanisms in protecting customer funds above statutory limits.
The automatic payment process using BVNs aims to enhance efficiency, reduce administrative delays, and improve transparency in disbursements.
However, the NDIC noted that payments to other creditors and shareholders will only commence after all depositors have been fully reimbursed and subject to the availability of funds, reflecting the statutory priority given to deposit liabilities in the liquidation hierarchy.
The NDIC’s declaration of a N24.3 billion second liquidation dividend for Heritage Bank’s uninsured depositors demonstrates continued progress in the effort to reimburse victims of the bank’s collapse.
As further assets are realised and debts recovered, additional dividends are expected, offering incremental relief to affected depositors.
For policy watchers and banking customers alike, the episode highlights the value of robust deposit insurance frameworks and the need for ongoing reforms to strengthen financial sector resilience in Nigeria.
