NDIC Begins N46.6bn Heritage Bank Liquidation Dividend Payments
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has commenced payment of N46.6 billion as the first tranche of liquidation dividends to depositors of the defunct Heritage Bank whose account balances exceeded the insured limit of N5 million.
This payment, starting on April 25, 2025, was made at the rate of 9.2 kobo per naira on a pro-rata basis from the proceeds of the bank’s asset sales and debt recoveries.
A liquidation dividend is the amount paid to depositors beyond the insured limit, derived from the liquidation of the failed bank’s assets and recovery of its debts. It also covers payments to creditors and shareholders after all depositors have been fully reimbursed.
The NDIC emphasized that this is only the first tranche, with further payments to follow as more assets are realized.
Following the revocation of Heritage Bank’s operating license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC swiftly reimbursed insured deposits of up to N5 million per depositor within four days, using Bank Verification Numbers (BVN) to identify depositors and credit their alternate bank accounts automatically. This efficient process marked a historic shift in prompt reimbursement.
The NDIC urged depositors who have not yet received their insured amounts or liquidation dividends-especially those without BVNs or alternate accounts-to visit the nearest NDIC office or submit verification forms online.
The Corporation said it is committed to ensuring all eligible depositors are fully reimbursed and continues to work on asset realization and debt recovery to fund further payments.
NDIC’s Managing Director Bello Hassan highlighted the Corporation’s dedication to depositor protection and financial system stability, stating, “Our record in bank liquidation is reassuring. NDIC has successfully declared full liquidation dividends to depositors of 20 previously failed banks. This reflects our unwavering commitment to depositor protection and our proven capacity to manage bank failures effectively.” He also called on depositors to provide necessary documentation to facilitate payments.
The liquidation process strictly follows Section 72 of the NDIC Act 2023, which prioritizes settling deposit liabilities before other claims. The NDIC continues to strengthen its mandate by enhancing public awareness and transparency, assuring the public that all licensed banks remain safe and sound during this process.
