The Nigeria Deposit Insurance Corporation (NDIC) has announced that the sale of Heritage Bank’s assets will begin on December 4, 2024.
Bashir Nuhu, the NDIC’s Director of Communication and Public Affairs, confirmed the move in a statement.
He explained that the sale will include the bank’s landed properties and is being carried out in accordance with the NDIC’s statutory powers as the liquidator of failed banks, as outlined in Section 62(1)(d) of the NDIC Act, 2023.
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“The sale of assets is by competitive bidding and will take place at the 36 affected locations of the bank across the country, from Wednesday 4th December 2024,” the NDIC said.
“Buyers who wish to participate in the auction are expected to follow laid down guidelines aimed at ensuring transparency, fair competition, equity, and accountability to enable recovery of commensurate values from the exercise. This is vital for the payment of liquidation dividends to eligible claimants.”
The NDIC said, “In order to allow the continuation of provision of financial services to the Nigerian public at the locations of the closed bank towards bolstering financial inclusion, preference shall be given to financial institutions who are willing to buy any of the properties at the highest auctioned prices along with all the physical assets at wholesale value.
“However, Corporate bodies and Private individuals willing to compete are equally eligible to compete in the process without prejudice, as the auction shall be open and competitive to all bidders.
“Furthermore, bidders will be given the opportunity to inspect the properties and chattels across all locations prior to disposal.
“Interested bidders are advised to submit their bids at various designated NDIC offices in Abuja, Lagos, Bauchi, Kano, Enugu and Port Harcourt.”
This development follows months after the Central Bank of Nigeria (CBN) revoked the license of Heritage Bank Plc, effective immediately.
In a statement on June 3, the CBN cited the bank’s failure to improve its financial performance, which it said posed a threat to financial stability.
Following the license revocation, the Nigeria Deposit Insurance Corporation (NDIC) began the process of verifying and compensating depositors of the failed bank. The NDIC announced that it would settle insured customers within a week, noting that the total deposits at Heritage Bank amounted to ₦650 billion, while its loan portfolio exceeded ₦700 billion.
The NDIC further revealed that Heritage Bank had 2.3 million depositors, with 99 percent holding balances of less than ₦5 million.
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