Heritage Bank Depositors Receive Second Payout Amid Stronger Banking Safeguards
By OBIOMA TORI
NDIC Declares ₦24.3 Billion Second Liquidation Dividend for Heritage Bank Depositors
THE Nigeria Deposit Insurance Corporation (NDIC) has announced the disbursement of a second liquidation dividend of ₦24.3 billion to depositors of the now-defunct Heritage Bank Limited, marking another milestone in efforts to safeguard customer funds and restore confidence in the nation’s banking sector.
The announcement follows the revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria (CBN) on 3 June 2024. In line with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1 & 2) of the NDIC Act 2023, the NDIC assumed the role of liquidator, immediately initiating the payment of insured deposits of up to ₦5 million per depositor from its Deposit Insurance Fund, alongside an aggressive programme of asset recovery, debt realisation, and investment monetisation.
Financial Recovery Progress
The NDIC’s recovery efforts first bore fruit in April 2025, when a ₦46.6 billion initial liquidation dividend was paid to depositors whose balances exceeded the insured threshold at the point of closure. The latest ₦24.3 billion tranche, sourced from continued asset sales, debt recoveries, and investment proceeds, will be disbursed at a rate of 5.2 kobo per ₦1.00 on depositors’ remaining uninsured balances. Cumulatively, depositors have now received 14.4 kobo per ₦1.00 of their outstanding balances, reflecting a significant step toward full reimbursement.
“The disbursement of this second dividend demonstrates our sustained commitment to ensuring that depositors recover as much of their funds as possible while maintaining systemic stability,” said an NDIC spokesperson.
Procedural Clarity for Depositors
To streamline payments, the NDIC will credit eligible customers automatically using existing records linked to Bank Verification Numbers (BVN). Depositors who have already received their insured deposits and the first liquidation tranche are advised to monitor their accounts for confirmation of the latest payment.
For depositors lacking alternative bank accounts, BVNs, or who have yet to claim either their insured deposits or the first liquidation dividend, the NDIC has instructed them to visit the nearest NDIC office nationwide. Alternatively, they can complete an e-claim form on the NDIC website to facilitate prompt verification and processing.
The corporation emphasised that liquidation dividends are sourced strictly from recovered assets, investments, and debt collections of the closed bank. Only after all depositors have been fully reimbursed will additional payments be considered for other creditors and shareholders, contingent on available funds.
Stabilising Nigeria’s Banking System
Beyond the immediate financial relief for depositors, the NDIC’s efforts highlight a broader commitment to systemic banking stability. By enforcing robust liquidation processes, ensuring timely repayment of insured and uninsured deposits, and maintaining transparency in its operations, the NDIC strengthens public confidence in Nigeria’s financial institutions.
“Prompt and methodical reimbursement of depositors is central to our mandate and is critical for sustaining trust in the banking sector,” the spokesperson added. “This second tranche is part of an ongoing programme, and additional dividends will be released as further recoveries are realised.”
The Heritage Bank case underscores the importance of regulatory oversight, efficient asset recovery, and clear procedural guidance for depositors, while demonstrating the NDIC’s capacity to manage complex liquidation processes without destabilising the broader financial system.
As depositors await further tranches, the NDIC’s structured approach serves as both a safety net for affected customers and a reminder of the institution’s critical role in ensuring the resilience and reliability of Nigeria’s banking framework.
