The Nigeria Deposit Insurance Corporation, NDIC, has declared a first liquidation dividend of N46.6 billion in April 2025, at a rate of 9.2 kobo per N1.00, following the disposal of physical assets, recovery of debts, and realisation of investments of the defunct Heritage Bank Limited.

The Central Bank of Nigeria, CBN, had on June 3, 2024, revoked the operational banking license of the defunct bank, triggering section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1 & 2) of the NDIC Act 2023.

Following the revocation, the Corporation initiated procedures for claims and payments of insured deposits up to the statutory limit of N5 million from its Deposit Insurance Fund.

A statement signed by the Head, Communication & Public Affairs of the corporations, Hawwau Gambo, informed that the first liquidation dividend of N46.6 billion was paid on a pro-rata basis to depositors whose account balances exceeded the statutory insured limit of N5 million at the date of closure.

The NDIC has now declared a second liquidation dividend of N24.3 billion, an amount it noted was derived from debt recovery, sale of physical assets, and the realisation of the defunct Heritage Bank’s investments.

It noted that 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, in accordance with Section 72 of the NDIC Act 2023.

This amount brings the cumulative liquidation dividend declared by January 2026 to 14.4 kobo per N1.00.

The statement noted that “payments will be effected using depositors’ details already in the NDIC records. Eligible depositors, who previously received the insured sum and the first tranche of liquidation dividends, will have their alternative bank accounts automatically credited using their Bank Verification Numbers (BVN). Depositors are advised to check their accounts for confirmation.

“Depositors without alternative bank accounts, BVNs, or who have not claimed their insured sum of up to N5 million or the first liquidation dividend, should visit the nearest NDIC office or complete the e-claim form.

“For clarity, a liquidation dividend is the amount paid by the NDIC to depositors of a closed bank whose balances exceed the statutory insured limit, from proceeds of asset sales, investment realisation, and debt recovery.

“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.”