Heritage Bank Liquidation: NDIC Recovers N24.3bn to Pay Depositors

The Nigeria Deposit Insurance Corporation has recovered an additional N24.3 billion from the assets of the defunct Heritage Bank Limited, strengthening ongoing efforts to reimburse depositors whose account balances exceeded the statutory insured limit at the time the bank’s licence was revoked.

The recovery was disclosed in an official statement issued by the corporation, confirming that the funds will be applied toward settling uninsured deposits held by customers with balances above N5 million.

Heritage Bank’s operating licence was revoked by the Central Bank of Nigeria in June 2024, after which the NDIC was appointed as liquidator in line with the provisions of Nigeria’s banking and deposit insurance laws. Since then, the corporation has been engaged in asset realisation, debt recovery, and investment liquidation to protect depositors’ funds.

According to the NDIC, the newly recovered N24.3 billion was generated through the recovery of outstanding debts owed to the bank, the sale of physical assets, and the realisation of investments. The proceeds are designated specifically for depositors whose balances exceeded the insured threshold of N5 million.

The corporation stated that the second liquidation dividend will be paid at a rate of 5.2 kobo for every N1.00 of outstanding uninsured balance. This brings the total liquidation dividend declared so far to 14.4 kobo per N1.00, following an earlier payment made in 2025.

Payments will be processed using depositors’ existing records already captured by the NDIC. Eligible customers who previously received the insured sum and the first liquidation dividend will have their alternative bank accounts credited automatically through their Bank Verification Numbers.

Depositors who have not yet provided alternative bank account details, do not have BVNs, or are yet to claim their insured deposits or first dividend tranche have been advised to visit the nearest NDIC office or complete the electronic claims form available on the corporation’s official platform to enable prompt payment.

The NDIC had earlier declared a first liquidation dividend of N46.6 billion in April 2025, which was paid at a rate of 9.2 kobo per N1.00 to depositors with balances exceeding the insured limit at the time of the bank’s closure. That payment was made on a pro rata basis in line with applicable regulations.

Clarifying the process, the corporation explained that liquidation dividends represent payments made to depositors of a failed bank whose balances exceed the statutory insured limit. Such payments are funded solely from proceeds recovered through asset sales, debt collections, and investment realisation.

The NDIC further noted that depositors are given priority in the liquidation process, adding that other creditors will only be considered after depositors have been fully reimbursed. Shareholders, the corporation said, would only receive payments if funds remain after all other obligations have been settled.

The corporation assured depositors and the general public that the current payment represents only the second phase of the liquidation exercise. Additional liquidation dividends, it said, will be declared as more assets are recovered and outstanding debts are collected.

According to the NDIC, the corporation remains committed to the timely recovery of all recoverable assets and the prompt reimbursement of depositors, in line with its mandate to promote confidence and stability in Nigeria’s banking system.