The Nigeria Deposit Insurance Corporation has approved a new payout for customers affected by the collapse of Heritage Bank Limited. The decision marks another major step in the resolution process following the withdrawal of the bank’s operating licence by the Central Bank of Nigeria. Under the latest move, the regulator declared a second Heritage Bank liquidation dividend amounting to N24.3 billion. The payment applies to depositors whose balances exceeded the statutory insured limit at the time of the bank’s closure.
The announcement comes after sustained recovery efforts by the NDIC since it assumed responsibility as liquidator. The Corporation acted under the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023. Since then, it has focused on recovering loans, selling assets, and managing claims in line with the law. These steps continue to shape the pace of reimbursement to affected depositors.
NDIC declares Heritage Bank liquidation dividend details
In its official statement, the NDIC said the second Heritage Bank liquidation dividend would be paid at a rate of 5.2 kobo per naira on outstanding uninsured balances. This applies only to depositors whose funds exceeded the insured threshold of N5 million when the bank was shut down. The Corporation confirmed that the payment follows Section 72 of the NDIC Act 2023.
With this latest payout, the total liquidation dividend declared so far rises to 14.4 kobo per naira. This figure includes the first liquidation dividend of N46.6 billion paid in April 2025 at a rate of 9.2 kobo per naira. As a result, eligible depositors have now recovered a larger share of their previously uninsured deposits.
Also read: Heritage Bank: NDIC declares ₦24.3bn second liquidation dividend
Asset recovery strengthens liquidation process
The NDIC attributed the second Heritage Bank liquidation dividend to steady progress in asset recovery. According to the Corporation, funds for the payout came from recovered debts, the disposal of physical assets, and the realisation of investments owned by the defunct bank. Each recovery effort expands the pool available for distribution.
The liquidation process follows a clear legal sequence. First, insured depositors receive their guaranteed funds. Next, liquidation dividends go to depositors with balances above the insured limit. Only after all depositors are fully reimbursed will other creditors and shareholders be considered. Therefore, the speed of future payouts depends on how quickly remaining assets are converted to cash.
Payment process for affected depositors
The NDIC confirmed that payments under the second Heritage Bank liquidation dividend will be made automatically to eligible depositors. The Corporation will rely on existing records and Bank Verification Numbers to credit alternative bank accounts. This approach aims to ensure accuracy and reduce delays.
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Depositors who already received their insured deposits and the first dividend do not need to submit new claims. Their alternative accounts will be credited directly. However, some customers still need to take action. These include depositors without alternative accounts, those without BVNs, and those who have not claimed their insured deposits or earlier dividend.
NDIC guidance and next steps
To resolve outstanding cases, the NDIC advised affected depositors to visit any of its offices nationwide. In addition, claimants can complete the e-claim form on the Corporation’s official website. The NDIC said these measures will help speed up verification and payment processing.
The Corporation also clarified that liquidation dividends apply only to depositors with uninsured balances. Other claimants, including creditors and shareholders, will be considered only after all depositors have been fully reimbursed. This will depend on the success of ongoing recovery efforts.
Outlook for future liquidation dividends
The NDIC stressed that the newly approved payout represents only the second phase of the liquidation process. As recovery continues, the Corporation expects to declare additional dividends. Each future Heritage Bank liquidation dividend will reflect the value of assets realised and debts recovered.
Analysts say the steady flow of updates and payments supports confidence in Nigeria’s banking resolution framework. Transparent communication and phased reimbursements reassure depositors and reinforce trust in regulatory institutions. For customers of the defunct bank, the latest declaration signals continued progress toward fuller recovery as the liquidation process advances.
NDIC approved a N24.3bn second payout to uninsured depositors after Heritage Bank closure, recovery progress, steps Heritage Bank liquidation dividend Heritage Bank liquidation dividend
