Depositors of the now-defunct Heritage Bank Limited will soon receive another round of payments, as the Nigeria Deposit Insurance Corporation (NDIC) has completed the second liquidation dividend totaling N24.3 billion.
A liquidation dividend is the payment the NDIC makes to depositors of a closed bank whose balances exceed the insured limit, using funds from the sale of assets, cashing in investments, and recovering debts. Once all depositors are fully paid, any remaining funds go to other creditors, and then to shareholders, if there’s still money left.
The Central Bank of Nigeria (CBN) revoked Heritage Bank Limited’s license on June 3, 2024. It appointed the Nigeria Deposit Insurance Corporation (NDIC) as Liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1 & 2) of the NDIC Act 2023.
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, in addition, also immediately commenced the disposal of physical assets, recovery of debts, and realization of investments of the defunct bank.
The second dividend, coming after the initial N46.6 billion dividend, was generated from debt recovery, sale of physical assets, and investment realisations, and will go toward the payment of uninsured balances for depositors whose funds exceed the ₦5 million insured limit.
The second liquidation dividend is payable at a rate of 5.2 kobo per ₦1.00 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 ₦1.00.
The Corporation declared a first liquidation dividend of ₦46.6 billion in April 2025, at a rate of 9.2 kobo per ₦1.00. This amount was paid on a pro-rata basis to depositors whose account balances exceeded the statutory insured limit of ₦5 million at the date of closure. Subsequently, the Corporation continued to pursue the recovery of assets to enable further reimbursement to eligible depositors.
Hawwau Gambo, the Head, Communication & Public Affairs Department of the NDIC in a statement stated that the payments of the second dividend will be made 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). Depositors are advised to check their accounts for confirmation.
She advised depositors without alternative bank accounts, BVNs, or who have not claimed their insured sum of up to ₦5 million or the first liquidation dividend to visit the nearest NDIC office or complete the e-claim form available at https://ndic.gov.ng/claims-verification-forms for prompt processing.
While the NDIC assures the public that this payment represents only the second liquidation dividend, it also stated that additional payments shall be made subject to the realisation of assets and collection of outstanding debts.
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