The Nigeria Deposit Insurance Corporation (NDIC) has officially launched the payment of N46.6 billion as the first installment of liquidation dividends to depositors of the defunct Heritage Bank, focusing specifically on customers with balances exceeding the insured threshold of N5 million.
In a statement released on Sunday, the NDIC confirmed that the payout commenced on Friday, April 25, 2025. This initial round of payments follows the successful recovery of proceeds from the sale of Heritage Bank’s assets as well as the collection of outstanding loans.
Highlighting its dedication to protecting depositor interests, the Corporation emphasized that this move marks a significant milestone in its broader effort to ensure all depositors impacted by Heritage Bank’s collapse are fully reimbursed. “In its continued commitment to ensuring that depositors of the defunct Heritage Bank are fully reimbursed, the Nigeria Deposit Insurance Corporation (NDIC) has declared the first tranche of liquidation dividends totaling N46.6 billion,” read the statement signed by Hawwau Gambo, Acting Head of Communication and Public Affairs.
Understanding Liquidation Dividends
According to the NDIC, liquidation dividends represent payments made to depositors whose funds surpass the insured N5 million limit. These payouts are sourced from recoveries made through asset sales and loan collections from failed banks.
The Corporation revealed that the initial liquidation dividend for Heritage Bank customers has been calculated at 9.2 kobo per Naira, distributed on a pro-rata basis. This means each depositor with uninsured balances at the time of the bank’s closure will receive a payout proportional to their outstanding funds.
Seamless Disbursement Through the BVN System
To streamline the payment process, the NDIC utilized the Bank Verification Number (BVN) system to identify depositors and credit their alternate accounts held at other financial institutions. This strategy was designed to ensure a smooth and efficient disbursement.
Nevertheless, the Corporation urged depositors who have not yet received their liquidation dividend — despite having already collected their insured deposits — to visit any NDIC office or reach out to the Claims Resolution Department via the published telephone lines for prompt assistance.
“For those depositors who do not maintain alternative bank accounts and were not paid the insured amount, they are advised to visit the nearest NDIC office or go to the claims page on the Corporation’s website to download, complete, and submit the deposit verification form,” the statement added.
More Payments Expected as Recovery Continues
The NDIC stressed that the current payment represents only the first tranche of liquidation dividends. Further payments will follow as the Corporation continues its recovery efforts from Heritage Bank’s remaining assets and unsettled loan obligations.
This phased approach reflects NDIC’s strategy to ensure all legitimate claims are settled fully over time, depending on the volume of recovered funds.
Background: Heritage Bank’s Closure and Initial Payouts
Following the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank’s operating licence on June 3, 2024, the NDIC had promptly intervened to protect depositors. The Corporation initially reimbursed all depositors up to the insured limit of N5 million per individual, preserving public confidence in the banking system.
At the time, the NDIC had already promised that uninsured depositors would receive additional payments beginning in April 2025, depending on recovery progress. The rollout of the first tranche of liquidation dividends now fulfills that promise, representing a critical step toward full compensation.
NDIC’s Continued Commitment to Depositor Protection
Reaffirming its broader mission, the NDIC reiterated its unwavering commitment to deposit guarantee and the stability of Nigeria’s financial system. The Corporation pledged to intensify its recovery efforts in order to facilitate further payments in subsequent tranches.
Through these actions, the NDIC continues to demonstrate its role as a vital safety net within the financial sector, ensuring that depositors of failed banks like Heritage Bank are not left behind.
