The Nigeria Deposit Insurance Corporation (NDIC) has announced that the sale of Heritage Bank’s assets is set to begin on December 4, 2024.
Bashir Nuhu, the NDIC’s director of communication and public affairs, confirmed this in a statement. He explained that the sale includes properties that were once owned by the now-defunct bank. This liquidation effort, Nuhu clarified, is a crucial part of NDIC’s role as the official liquidator of failed banks, as mandated by Section 62 (1)(d) of the NDIC Act, 2023.
The assets will be auctioned off through a competitive bidding process at 36 Heritage Bank locations across the country. Interested parties are invited to submit their bids at designated NDIC offices in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt. NDIC has emphasized the importance of transparency, fair competition, and accountability throughout the auction, with the goal of securing enough funds to distribute liquidation dividends to uninsured depositors. Additionally, NDIC is prioritizing the purchase of entire properties and physical assets by financial institutions, in line with its commitment to preserving financial services in affected areas and promoting financial inclusion.
Bashir Nuhu also mentioned that both corporate entities and private individuals are welcome to participate in the bidding process. Prospective buyers will have the opportunity to inspect the available properties and chattels at all locations before the auction.
This announcement comes after the Central Bank of Nigeria (CBN) revoked Heritage Bank’s license on June 3, citing financial instability risks due to the bank’s poor financial performance. Following the revocation, NDIC initiated verification and payment processes for depositors, with NDIC Managing Director Bello Hassan promising to compensate insured depositors within one week. At the time of license revocation, Heritage Bank was managing total deposits of N650 billion, a loan portfolio exceeding N700 billion, and serving 2.3 million depositors, with 99% of them holding balances below N5 million.
The sale will include 48 properties and a variety of chattels, such as vehicles, office equipment, and machinery, located at 62 sites throughout Nigeria. Interested parties can find more information on the NDIC’s website, social media platforms, and national newspapers.
