The Nigeria Deposit Insurance Corporation (NDIC) has taken a significant step in winding up the affairs of the defunct Heritage Bank Limited by announcing a substantial second liquidation dividend payout. The Corporation revealed it is disbursing a sum of N24.3 billion to depositors whose account balances were above the statutory insured limit of N5 million at the time of the bank's collapse.
Details of the Second Liquidation Payout
In a statement released by Hawwau Gambo, the Head of the NDIC's Communication and Public Affairs Department, the funds for this latest payout were generated from the ongoing recovery process. This process includes the sale of the bank's physical assets, the recovery of outstanding loans, and the liquidation of its investments.
The second dividend is being paid at a rate of 5.2 kobo for every N1 owed on the uninsured portion of depositors' balances. This action is executed under the powers granted by Section 72 of the NDIC Act 2023. With this latest disbursement, the total liquidation dividend declared for Heritage Bank depositors so far now stands at 14.4 kobo per N1 of uninsured funds.
The NDIC clarified that the payment mechanism is automated for most eligible customers. Depositors who have previously received their insured deposits and the first dividend will find the new funds credited directly to their alternative bank accounts, which are linked via their Bank Verification Numbers (BVNs).
Background and Recovery Timeline
The journey to this payout began when the Central Bank of Nigeria (CBN) revoked the banking licence of Heritage Bank Limited on June 3, 2024, citing regulatory concerns. Following this revocation, the NDIC was appointed as the official liquidator in accordance with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023.
The Corporation's first action was to settle insured deposits up to N5 million per depositor. Subsequently, it embarked on an aggressive asset recovery drive. The success of these initial efforts led to the declaration of the first liquidation dividend of N46.6 billion in April 2025, which was paid at a rate of 9.2 kobo per N1.
The NDIC has emphasized that the payment of liquidation dividends is a pro-rata process, entirely dependent on the success of recovering value from the failed bank's remaining assets and liabilities.
Priority of Payments and Future Expectations
The Corporation has reaffirmed the strict hierarchy of payments in a liquidation scenario. Depositors remain the top priority and must be fully reimbursed before any payments are made to other creditors. Shareholders of the defunct bank will be considered last, and only if funds are still available after all other claimants have been settled.
For depositors who have not yet claimed their insured deposits or the first dividend, or those without BVNs or alternative bank accounts on record, the NDIC has advised a visit to the nearest NDIC office or the completion of an e-claim form on the Corporation's official website to facilitate processing.
The NDIC assured the public that the N24.3 billion payout is not the final chapter. It stated clearly that further liquidation dividends are anticipated as the Corporation continues its asset realization and debt recovery efforts. The ultimate goal remains the full protection of depositors and ensuring they recover as much of their funds as possible.
In a related development, the NDIC has also commenced the verification and payment of insured deposits to customers of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. This action follows the revocation of their operating licences by the CBN on December 15, 2025, marking the start of the formal liquidation process for these two mortgage banks.
