Heritage Bank Collapse: NDIC Releases N24.3bn Second Dividend for Depositors with above N5m
- NDIC announces N24.3 billion second liquidation dividend for Heritage Bank Limited depositors exceeding insured limit
- Liquidation dividend set at 5.2 kobo for every N1 on uninsured balances, totalling 14.4 kobo declared so far
- Future payments depend on continued asset recovery, with depositors prioritised over creditors and shareholders
The Nigeria Deposit Insurance Corporation has announced a second liquidation dividend of N24.3 billion for depositors of the defunct Heritage Bank Limited, whose account balances exceeded the statutory insured limit of N5 million.
The payment comes as the Corporation continues recovery efforts from the failed bank’s assets.
Source: Original
In a statement issued by Hawwau Gambo, Head of the Communication and Public Affairs Department, the NDIC said the funds were realised from debt recovery, sale of physical assets and the liquidation of investments belonging to the bank.
The amount will be applied to uninsured deposits above the N5 million coverage limit.
How much will depositors receive?
According to the NDIC, the second liquidation dividend is being paid at a rate of 5.2 kobo for every N1 on outstanding uninsured balances, in line with Section 72 of the NDIC Act 2023. This latest payment brings the total liquidation dividend declared so far to 14.4 kobo per N1.
According to a BusinessDay report, the Corporation explained that liquidation dividends are paid on a pro-rata basis and depend on how much is recovered from the assets and liabilities of a failed bank.
Background to Heritage Bank’s failure
Heritage Bank Limited’s banking licence was revoked by the Central Bank of Nigeria on June 3, 2024, following regulatory concerns.
After the revocation, the NDIC was appointed as liquidator in line with the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023.
Upon assuming control, the Corporation immediately began paying insured deposits of up to N5 million per depositor from the Deposit Insurance Fund.
At the same time, it commenced the sale of physical assets, recovery of outstanding loans and realisation of investments to generate funds for depositors with balances above the insured limit.
First dividend paid in 2025
As a result of these recovery efforts, the NDIC declared a first liquidation dividend of N46.6 billion in April 2025.
That tranche was paid at 9.2 kobo per N1 to eligible depositors whose balances exceeded N5 million as of the date the bank was closed.
The Corporation said it has continued to intensify its asset recovery drive since then, leading to the declaration of the second dividend.
How payments will be made
The NDIC stated that the second liquidation dividend will be paid using depositors’ existing details already captured in its database.
Eligible depositors who have previously received their insured deposits and the first dividend will have their alternative bank accounts automatically credited through their Bank Verification Numbers.
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Those without alternative bank accounts or BVNs, as well as depositors who are yet to claim their insured deposits or the first liquidation dividend, were advised to visit the nearest NDIC office or complete the e-claim form on the Corporation’s website for prompt processing.
What happens next?
The Corporation clarified that payments to other creditors will only begin after all depositors have been fully reimbursed, while shareholders will be considered last, subject to the availability of funds.
The NDIC assured depositors that the current payout represents only the second liquidation dividend and that further payments will follow as more assets are realised and outstanding debts recovered, reaffirming its commitment to protecting depositors and ensuring timely reimbursement.
CBN revokes Aso Savings, Union Homes licences
Legit.ng earlier reported that the NDIC began the verification and payment of insured deposits to customers of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc following the revocation of their operating licences by the Central Bank of Nigeria (CBN).
The development marked the formal commencement of the liquidation process for the two mortgage banks and signals the activation of statutory protections for depositors affected by the closures.
The CBN withdrew the licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc on December 15, 2025. Following this decision, the NDIC was appointed as liquidator in line with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
