The Nigeria Deposit Insurance Corporation (NDIC) has declared a second liquidation dividend of ₦24.3 billion for depositors of the defunct Heritage Bank Limited whose account balances exceeded the statutory insured limit of ₦5 million as at the date the bank was closed, the corporation said in a statement on Sunday.
The declaration follows the revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria (CBN) on June 3, 2024, after which the NDIC was appointed liquidator under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023, the statement added.
According to the NDIC’s Head of Communication and Public Affairs Department, Hawwau Gambo, the second liquidation dividend was realised through debt recovery, sale of physical assets and realisation of investments belonging to the failed bank.
The payout will be applied to reimburse depositors whose funds were above the insured limit.
The second tranche is payable at a rate of 5.2 kobo per ₦1.00 on outstanding uninsured balances, bringing the cumulative liquidation dividend declared so far to 14.4 kobo per ₦1.00, officials said.
The NDIC noted that payments will be effected automatically using details already held in its records for eligible depositors.
Those who have previously received their insured sums and the first liquidation dividend will have their alternative bank accounts credited via their Bank Verification Numbers (BVNs). The corporation advised depositors to check their bank accounts for confirmation of payment.
Depositors who do not have alternative bank accounts linked to their BVNs, or those who have not yet claimed their insured amounts or the first liquidation dividend, were urged to visit the nearest NDIC office or complete the e-claim form available on the corporation’s website for verification and prompt processing.
Under the liquidation process, the NDIC said deposits up to ₦5 million per depositor were previously paid from the Deposit Insurance Fund, and the ongoing liquidation dividends are drawn from realised recoveries to cover amounts above that threshold.
The NDIC explained that liquidation dividends are paid to depositors of a closed bank whose balances exceed the insured limit using proceeds from asset sales, investment realisation and debt recovery.
Payments to other creditors and shareholders will only commence after all depositors have been fully reimbursed and subject to the availability of funds.
This second tranche of payment marks a further step in the NDIC’s efforts to reimburse uninsured depositors affected by the closure of Heritage Bank, contributing to the overall recovery of depositors’ funds as liquidation processes continue.
