THE Nigeria Deposit Insurance Corporation (NDIC) has approved a second liquidation dividend of N24.3 billion for depositors of the defunct Heritage Bank Limited whose account balances exceeded the N5 million statutory insurance limit.

In a statement issued by Head of the Communication and Public Affairs Department, Mr Hawwau Gambo, the NDIC said the funds were generated from ongoing asset recovery activities, including debt repayments, disposal of physical assets and the realisation of investment holdings. The proceeds will be used to offset the uninsured portion of depositors’ balances above the N5 million threshold.

The NDIC explained that the newly declared dividend will be paid at a rate of 5.2 kobo for every N1.00 outstanding, in line with Section 72 of the NDIC Act 2023. With this payment, the total liquidation dividend declared so far amounts to 14.4 kobo per N1.00.

Heritage Bank’s operating licence was withdrawn by the Central Bank of Nigeria (CBN) on June 3, 2024. Following the revocation, the NDIC was appointed liquidator under the provisions of Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1 and 2) of the NDIC Act 2023.

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Upon assuming control, the NDIC commenced the verification of claims and payment of insured deposits of up to N5 million per depositor from the Deposit Insurance Fund. At the same time, the NDIC began recovering outstanding loans, selling physical assets and realising investments belonging to the failed bank.

These efforts led to the declaration of a first liquidation dividend of N46.6 billion in April 2025, paid at 9.2 kobo per N1.00. That initial payment was distributed on a pro-rata basis to depositors whose balances exceeded the insured limit as at the date the bank was closed. Asset recovery activities have since continued to enable further reimbursements.

According to the NDIC, payment of the second liquidation dividend will be made using depositors’ existing records. Eligible depositors who have already received their insured deposits and the first liquidation dividend will have their alternative bank accounts credited automatically through their Bank Verification Numbers (BVN).

Depositors who do not have alternative bank accounts or BVNs, as well as those yet to claim their insured deposits or the first liquidation dividend, were advised to visit the nearest NDIC office or submit an e-claim form via its website to facilitate payment.

The NDIC clarified that liquidation dividends represent payments made to depositors of a closed bank whose balances exceed the insured limit, using funds realised from asset sales, investment proceeds and recovered debts. It noted that other creditors will only be paid after all depositors have been fully settled, while shareholders will be considered last, subject to the availability of funds.

The Corporation reassured depositors that the current disbursement is only the second tranche of liquidation dividends and that further payments will be made as more assets are recovered, underscoring its commitment to timely reimbursement.