The Nigeria Deposit Insurance Corporation (NDIC) has announced a second liquidation dividend of N24.3 billion for depositors of the defunct Heritage Bank Limited. This payout targets depositors whose account balances surpassed the N5 million insured limit when the Central Bank of Nigeria (CBN) revoked the bank’s license on June 3, 2024.

The NDIC, appointed as liquidator, has been working to recover assets. According to a statement released by the Head of Communication and Public Affairs Department, Hawwau Gambo, the NDIC commenced verification and payment of insured deposits, up to N5 million per depositor, immediately following its appointment as liquidator. This initial payment was drawn from the Deposit Insurance Fund, alongside proceeds from the disposal of physical assets, recovery of outstanding loans, and realisation of investments of the failed bank.

The CBN's decision to revoke Heritage Bank's license was based on the bank's inability to improve its financial performance. This latest dividend declaration signifies progress in the NDIC's efforts to mitigate losses for depositors affected by the bank's failure. The initial insured deposits were paid out promptly to alleviate immediate financial strain on smaller depositors.

This second dividend payment brings the total amount paid out to Heritage Bank depositors to N70.9 billion. This includes the initial insured deposits and the current liquidation dividend. The NDIC aims to maximize asset recovery to further compensate depositors who held balances exceeding the insured limit.

The NDIC continues its recovery efforts, pursuing outstanding loans and asset sales to potentially announce further dividend payments in the future. Depositors are encouraged to stay informed through official NDIC channels for updates on the liquidation process. Market watchers believe that this move underscores the NDIC’s commitment to protecting depositors and maintaining stability within the financial system, especially in a challenging economic environment.