The Nigeria Deposit Insurance Corporation (NDIC) has announced a significant N24.3 billion second liquidation dividend for Heritage Bank depositors who had balances exceeding the N5 million insured limit. This development underscores the ongoing efforts to recover assets from the defunct bank and reimburse uninsured funds to eligible account holders. The corporation’s diligent work in debt recovery, asset sales, and investment realization has paved the way for this substantial payout, offering crucial financial relief to those impacted by the bank’s closure.
The N24.3 billion dividend, detailed in a statement by the NDIC’s Communication and Public Affairs Department, will be distributed at a rate of 5.2 kobo per N1.00 on outstanding balances. This payment is in strict accordance with Section 72 of the NDIC Act 2023, bringing the total cumulative liquidation dividend declared so far to an impressive 14.4 kobo per N1.00. This progressive reimbursement strategy aims to maximize the return of funds to depositors.
What is a liquidation dividend?
A liquidation dividend is the amount paid by the NDIC to depositors of a closed bank whose balances exceed the statutory insured limit. This payment is derived from the proceeds generated through the sale of the bank’s assets, the realization of its investments, and the successful recovery of outstanding debts owed to the institution. It represents a crucial step in returning funds beyond the initial insured amount.
This second dividend declaration follows the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank Limited’s banking license on June 3, 2024. Subsequently, the NDIC was appointed as the official liquidator, tasked with managing the bank’s assets and liabilities in line with relevant financial regulations. The NDIC acted swiftly to process claims and disburse insured deposits up to the N5 million threshold from the Deposit Insurance Fund.
Upon assuming its liquidation role, the NDIC immediately initiated a comprehensive process of asset disposal, debt recovery, and investment realization. These actions were critical in generating the funds necessary for the subsequent payment of uninsured balances to depositors. The corporation’s proactive approach has been instrumental in accelerating the recovery process.
The first liquidation dividend, amounting to N46.6 billion, was declared in April 2025. This initial payout was distributed at a rate of 9.2 kobo per N1.00 on a pro-rata basis to depositors whose account balances surpassed the N5 million insured limit at the time of the bank’s closure.
Following the first dividend, the NDIC intensified its asset recovery operations to facilitate further reimbursements to eligible depositors. The corporation has ensured that the payment of the second liquidation dividend will be seamless, utilizing the depositors’ details already on record. Eligible depositors who have already received their insured sums and the first liquidation dividend will have their alternative bank accounts automatically credited, facilitated by their Bank Verification Numbers (BVN).
Depositors who may not have alternative bank accounts or BVNs, or those who have not yet claimed their insured deposits up to N5 million or the initial liquidation dividend, are strongly advised to visit the nearest NDIC office. Alternatively, they can complete the e-claim form available on the NDIC’s official website to ensure prompt processing of their claims.
It is important to clarify that payments to other creditors of the defunct bank will only commence once all depositors have been fully reimbursed. Shareholders will be considered for any remaining funds only after all depositor obligations have been met, subject to the availability of sufficient funds.
The NDIC reassures the public that this second liquidation dividend is not the final payment. Additional distributions will be made as more assets are realized and outstanding debts are recovered. The corporation remains steadfast in its commitment to the timely recovery of obligations and the prompt reimbursement of all eligible depositors.
