The Nigerian Deposit Insurance Corporation (NDIC) has commenced the payment of ₦46.6 billion in liquidation dividends to depositors of the now-defunct Heritage Bank Plc. The payments are part of efforts to reimburse depositors whose funds exceeded the maximum insured limit, following the bank’s licence revocation in June 2024.
In a statement released on Sunday, Hawwau Gambo, the Acting Head of Communication and Public Affairs at NDIC, explained that the funds were realised through the sale of the bank’s assets and recovery of debts owed to the institution.
“Liquidation dividends are payments made to depositors of closed banks beyond the insured limit, utilising proceeds from asset sales and debt recoveries. Once depositors are fully reimbursed, subsequent dividends may also cover payments to creditors and shareholders,” Gambo stated.
The first tranche of liquidation dividends is being paid at a rate of 9.2 kobo per Naira on a pro-rata basis to depositors with balances exceeding ₦5 million. According to Gambo, payment of this initial dividend tranche began on 25 April 2025, and further disbursements will follow as more assets are liquidated and outstanding debts are recovered.
Heritage Bank’s licence was revoked by the Central Bank of Nigeria (CBN) on 3 June 2024, citing regulatory breaches and persistent financial instability. In response, the NDIC swiftly initiated the reimbursement of insured deposits, paying out up to ₦5 million per depositor through an automated process. Using depositors’ Bank Verification Numbers (BVN), the NDIC identified alternative bank accounts where insured funds were credited seamlessly.
The Corporation also leveraged existing payment records to facilitate the disbursement of the initial liquidation dividends. However, Gambo urged depositors with balances above ₦5 million who have not received their dividends to visit the nearest NDIC office for further processing. She also advised depositors who were not paid the insured amount due to a lack of alternative bank accounts to either visit NDIC offices or download the necessary deposit verification forms from the agency’s website, www.ndic.gov.ng.
“To receive their insured amounts and the applicable first tranche of liquidation dividends, depositors must complete and submit a deposit verification form,” Gambo emphasized.
Reaffirming the NDIC’s commitment, Gambo assured that the Corporation would continue its diligent recovery of Heritage Bank’s assets to ensure that all eligible depositors are fully reimbursed. She also reiterated that the NDIC remains steadfast in protecting depositors and maintaining stability within the financial system.
The unfolding payments mark another significant step in Nigeria’s efforts to strengthen depositor protection and uphold confidence in the banking sector.
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