NDIC to begin Heritage Bank asset sale on December 4
Joy Agwunobi
The Nigeria Deposit Insurance Corporation (NDIC) has announced that the sale of Heritage Bank’s assets will begin on December 4, 2024.
In a statement issued recently, Bashir Nuhu, the director of Communication and Public Affairs at NDIC, disclosed that the corporation had already commenced the process of liquidating the defunct bank’s landed properties.
Nuhu emphasised that the move is in line with the NDIC’s statutory role as the liquidator of failed banks in the country, noting that the commission’s actions are guided by the provisions of the NDIC Act.
“This exercise is in full compliance with the corporation’s legal powers as liquidator of failed banks under Section 62(1)(d) of the NDIC Act, 2023,” Nuhu stated.
The asset sale will take place at 36 of Heritage Bank’s locations nationwide, with the bidding process open to interested parties. Nuhu noted “Interested bidders are encouraged to submit their bids at the NDIC’s offices located in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.”
The auction will be conducted by competitive bidding to ensure fairness and transparency, which the commission emphasised is vital for recovering commensurate values from the assets, adding that this process is crucial to the timely distribution of liquidation dividends to eligible depositors, especially the uninsured ones.
The NDIC also outlined that priority would be given to financial institutions interested in acquiring properties at the highest auction prices. According to the statement, in order to continue providing financial services to the public and support financial inclusion, preference will be granted to financial institutions willing to purchase properties at the highest auction prices, including all physical assets at wholesale value.
Bidders, whether corporate bodies or private individuals, are invited to participate in the auction process. “The bidding process will be open and competitive, ensuring that all interested parties have an equal opportunity,” Nuhu further stated.
The NDIC also revealed that prospective buyers will have the chance to inspect the properties and assets before the sale proceeds.
This move comes months after the Central Bank of Nigeria (CBN) revoked Heritage Bank’s operating licence, citing the bank’s failure to improve its financial performance, which the CBN flagged as a threat to the nation’s financial stability.
The CBN’s decision was announced on June 3, 2024, and shortly thereafter, the NDIC began the process of verifying and paying out claims to the bank’s depositors.
According to the NDIC, Heritage Bank had a total deposit portfolio of ₦650 billion, with a loan book exceeding ₦700 billion. The bank’s customer base included 2.3 million depositors, 99 per cent of whom held accounts with balances under ₦5 million.
On June 13, 2024, the NDIC publicly listed the bank’s assets for sale, which included 48 properties, vehicles, office equipment, and plant and machinery across 62 locations nationwide.