Nigeria Deposit Insurance Corporation Recovers Over N24 Billion for Heritage Bank Depositors
The Nigeria Deposit Insurance Corporation (NDIC) has announced a significant recovery of N24.3 billion from the assets of the now-defunct Heritage Bank Limited. This substantial sum is earmarked for the repayment of customers whose deposits exceeded the N5 million insured limit at the time the bank’s operating licence was revoked.
The announcement was made in a formal statement signed by Hawwau Gambo, the Head of the Communication & Public Affairs Department at the NDIC. This development follows the Central Bank of Nigeria’s decision on June 3, 2024, to revoke Heritage Bank’s licence and appoint the NDIC as the official liquidator. This action was taken in accordance with the provisions of the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023.
The newly recovered N24.3 billion has been generated through a multi-pronged strategy encompassing debt recovery, the sale of physical assets, and the realisation of various investments held by the bank. These funds will be specifically allocated to address the uninsured balances of depositors, providing them with a partial reimbursement of their funds held above the statutory N5 million insurance threshold.
Understanding the Liquidation Dividend Process
The NDIC has detailed the payment structure for these recovered funds, referring to them as the “second liquidation dividend.” This dividend is being paid at a rate of 5.2 kobo for every N1.00 of outstanding balances that fall outside the insured limit. This rate is stipulated by Section 72 of the NDIC Act 2023.
With this second payout, the cumulative liquidation dividend declared to date now stands at 14.4 kobo per N1.00 of uninsured balances. The NDIC will leverage the existing depositor details already on its records to facilitate these payments.
- Eligible Depositors: Those who have already received their insured sum (up to N5 million) and the initial tranche of liquidation dividends will find their alternative bank accounts automatically credited. These payments will be processed using their Bank Verification Numbers (BVNs). Depositors are encouraged to monitor their accounts for confirmation of these credits.
- Depositors Requiring Assistance: Depositors who have not yet claimed their insured sum up to N5 million, or who did not receive the first liquidation dividend, or who do not have alternative bank accounts or BVNs, are urged to visit the nearest NDIC office. Alternatively, they can complete the e-claim form available on the NDIC website to ensure prompt processing of their claims.
Previous Dividend and the Path Forward
This latest recovery follows an earlier declaration of a first liquidation dividend by the NDIC in April 2025. This initial payout amounted to N46.6 billion, distributed at a rate of 9.2 kobo per N1.00. This first dividend was also paid on a pro rata basis to depositors whose account balances exceeded the N5 million statutory insured limit at the time of Heritage Bank’s closure.
The NDIC clarified the concept of a liquidation dividend, explaining that it represents funds paid to depositors of a closed bank whose balances surpass the statutory insured limit. These payments are derived from the proceeds generated from the liquidation of the bank’s assets, the realisation of its investments, and the recovery of outstanding debts. The process prioritises depositors; only after all depositors have been fully reimbursed will any remaining funds be considered for payments to other creditors and subsequently to shareholders, contingent on the availability of funds.
The Corporation has reassured the public that the current payment is only the second liquidation dividend. It emphasized that further payments will be made as more assets are realised and outstanding debts are collected. The NDIC reiterates its unwavering commitment to the timely recovery of all outstanding obligations and the prompt reimbursement of all eligible depositors.
The revocation of Heritage Bank’s licence and the subsequent liquidation process are part of the NDIC’s mandate to protect depositors and maintain confidence in the Nigerian banking system. The corporation plays a crucial role in ensuring that depositors do not lose their savings in the event of a bank failure.
The diligent recovery efforts underscore the NDIC’s commitment to fulfilling its responsibilities. The process, while sometimes lengthy, is designed to ensure fairness and transparency for all stakeholders involved. Depositors are advised to remain patient and follow the prescribed procedures for claiming their entitlements.
The NDIC’s proactive approach in recovering assets and distributing dividends demonstrates its dedication to safeguarding the financial interests of Nigerian citizens. The successful recovery of such a substantial amount highlights the effectiveness of the corporation’s liquidation processes and its commitment to resolving the affairs of distressed financial institutions in an orderly manner.
