The Nigeria Deposit Insurance Corporation (NDIC) has declared a N24.3 billion second liquidation dividend for depositors of the failed Heritage Bank Limited with balances above the statutory insured limit of N5 million, as recovery efforts from the bank’s assets continue.
In a statement signed by Hawwau Gambo, head, Communication and Public Affairs Department, the Corporation said the amount, which was realised from debt recovery, sale of physical assets and the realisation of investments, will be applied to the payment of uninsured balances of depositors whose funds exceeded the N5 million insured threshold.
According to the NDIC, the second liquidation dividend is payable at the rate of 5.2 kobo per N1.00 on outstanding balances, in line with Section 72 of the NDIC Act 2023. This brings the cumulative liquidation dividend declared so far to 14.4 kobo per N1.00.
Read also: NDIC to pay first tranche of liquidation dividends to Heritage Bank depositors in April
The declaration follows the revocation of the banking licence of Heritage Bank Limited by the Central Bank of Nigeria (CBN) on June 3, 2024, after which the NDIC was appointed as liquidator in accordance with 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 its role, the Corporation immediately commenced the processing of claims and payment of insured deposits up to the statutory limit of N5 million from the Deposit Insurance Fund, while also initiating the disposal of physical assets, recovery of debts and realisation of investments of the defunct bank.
As a result of these efforts, the NDIC declared a first liquidation dividend of N46.6 billion in April 2025, paid at a rate of 9.2 kobo per N1.00. The payment was made on a pro-rata basis to depositors whose account balances exceeded the statutory insured limit of N5 million as at the date of closure of the bank. The Corporation thereafter continued its asset recovery drive to enable further reimbursement to eligible depositors.
The NDIC said payment of the second liquidation dividend will be effected using depositors’ details already captured in its records. Eligible depositors who have previously received the insured sum and the first tranche of liquidation dividends will have their alternative bank accounts automatically credited through their Bank Verification Numbers (BVN) and are advised to check their accounts for confirmation.
Depositors without alternative bank accounts or BVNs, as well as those who have not yet claimed their insured deposits of up to N5 million or the first liquidation dividend, were advised to visit the nearest NDIC office or complete the e-claim form available on the Corporation’s website for prompt processing.
For clarity, the Corporation explained that a liquidation dividend is the amount paid by the NDIC to depositors of a closed bank whose balances exceed the statutory insured limit, using proceeds from the sale of assets, realisation of investments and recovery of outstanding debts. It added that payments to other creditors will only commence after all depositors have been fully reimbursed, while shareholders will be considered last, subject to the availability of funds.
The NDIC assured the public that the current payment represents only the second liquidation dividend and that additional payments will be made as more assets are realised and outstanding debts recovered, reaffirming its commitment to the timely recovery of obligations and prompt reimbursement of depositors.