The Nigeria Deposit Insurance Corporation (NDIC) has announced a second liquidation dividend of N24.3 billion for depositors of the defunct Heritage Bank Limited. This follows the initial payment of N46.6 billion in April 2025, bringing the total cumulative liquidation dividend to 14.4 kobo per N1.00 as of January 2026.
The Central Bank of Nigeria (CBN) had revoked Heritage Bank’s operational license in June 2024, prompting the NDIC to initiate procedures for claims and payments of insured deposits up to the statutory limit of N5 million. The NDIC has now declared the second liquidation dividend, derived from debt recovery, sale of physical assets, and realization of the bank’s investments.
The funds will be applied to the payment of uninsured balances for depositors with funds exceeding the N5 million insured limit, payable at a rate of 5.2 kobo per N1.00 on outstanding balances. This is in accordance with Section 72 of the NDIC Act 2023. Payments will be made using depositors’ details already in the NDIC records, with eligible depositors having their alternative bank accounts automatically credited using their Bank Verification Numbers (BVN).
Depositors without alternative bank accounts, BVNs, or who have not claimed their insured sum of up to N5 million or the first liquidation dividend, are advised to visit the nearest NDIC office or complete the e-claim form. The NDIC has clarified that a liquidation dividend is the amount paid to depositors of a closed bank whose balances exceed the statutory insured limit, from proceeds of asset sales, investment realization, and debt recovery.
The payment of liquidation dividends is a significant step in the resolution of the defunct bank’s assets and liabilities. The NDIC has emphasized that 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. The corporation’s actions aim to protect depositors’ interests and maintain stability in the financial system. As the process continues, depositors and stakeholders will be keenly watching the outcome, with the NDIC committed to ensuring a fair and orderly resolution of the defunct bank’s affairs.
