Reported by: Oahimire Omone Precious | Edited by: Gabriel Osa
The Nigeria Deposit Insurance Corporation (NDIC) has announced a ₦24.3 billion second liquidation dividend for depositors of the defunct Heritage Bank Limited, marking a continuation of efforts to reimburse customers following the revocation of the bank’s operating licence. The fresh dividend represents a further step in the liquidation process and reflects the Corporation’s commitment to ensuring that depositors whose funds exceeded the statutory insured limit of ₦5 million are paid from the proceeds of asset realisation and debt recovery.
Heritage Bank’s banking licence was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024, after the institution was deemed unable to meet its financial obligations and posed a risk to systemic stability. Upon revocation, the CBN appointed the NDIC as liquidator, in accordance with Nigeria’s banking laws, including the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023.
Under Nigeria’s deposit insurance framework, depositors are guaranteed reimbursement for insured funds up to ₦5 million per account holder. However, for account balances exceeding that threshold — known as uninsured deposits — the NDIC is mandated to recover and liquidate the bank’s assets to generate funds that can be distributed as liquidation dividends.
The newly declared dividend of ₦24.3 billion will be applied to the payment of uninsured balances at a rate of 5.2 kobo per ₦1.00 of outstanding amounts. This payout, which brings the cumulative liquidation dividend to 14.4 kobo per ₦1.00, was realised from a combination of debt recovery, the sale of physical assets, and the realisation of investments linked to the defunct bank.
Earlier in April 2025, the NDIC paid out the first tranche of liquidation dividends totaling ₦46.6 billion, which was disbursed on a pro-rata basis to eligible depositors whose funds exceeded the insured limit at the time of the bank’s closure.
According to the NDIC, eligible depositors who have already received their insured deposits and the first tranche of liquidation dividends will have the second dividend paid directly into their registered bank accounts through their Bank Verification Numbers (BVNs). The Corporation has advised depositors to monitor their accounts for confirmation of the credit and has outlined procedures for those who have not yet received payments due to the absence of an alternative bank account or BVN registration. Such depositors are encouraged to visit the nearest NDIC office or complete an e-claim form on the NDIC website to facilitate prompt processing.
A liquidation dividend, as defined by the NDIC, is a payment made to depositors of a closed bank whose account balances exceed the insured limit and is sourced from the proceeds of asset sales, investment realisation and recovered debts. The NDIC emphasises that liquidation dividends are paid only after insured amounts have been reimbursed in full. Other creditors and shareholders may be considered for payment only after all depositors have been fully reimbursed and funds are available.
The announcement of this second tranche comes amid broader efforts by the NDIC to accelerate the resolution of failed financial institutions in Nigeria and safeguard confidence in the country’s banking sector. The Corporation’s actions in the Heritage Bank case reflect its statutory mandate to protect depositors and ensure that liquidation processes are conducted efficiently and transparently.
For many depositors whose savings were trapped in the failed bank, the payment of the second liquidation dividend is a welcome development that mitigates financial loss and underscores the importance of deposit insurance in fostering public trust in the financial system.
As the liquidation process continues and further assets are realised, the NDIC has indicated that additional liquidation dividends may be declared for eligible depositors. The Corporation affirms its commitment to the timely recovery of outstanding obligations and the full reimbursement of depositors, in line with its statutory responsibilities.
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