The Nigeria Deposit Insurance Corporation (NDIC) has announced that it will initiate the sale of Heritage Bank’s assets on December 4, 2024, following the recent revocation of the bank’s operating license.
In a statement by NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, the corporation disclosed that the sale, which includes the bank’s landed properties, is in line with its statutory powers as the liquidator of failed banks under section 62 (1)(d) of the NDIC Act, 2023.
“The asset sale will proceed through competitive bidding at 36 Heritage Bank locations nationwide, beginning Wednesday, December 4, 2024,” the statement noted. Prospective buyers are required to adhere to the NDIC’s guidelines designed to ensure transparency, fairness, and accountability, which will help recover fair value from the assets and facilitate payment of liquidation dividends to eligible claimants.
The NDIC highlighted that preference in the auction would be given to financial institutions willing to purchase the properties at the highest bid price, including all associated physical assets, in order to continue providing financial services in these locations and support financial inclusion. However, corporate bodies and private individuals are equally eligible to participate in the open and competitive bidding process.
Prior to the auction, interested bidders will have the opportunity to inspect the available properties and assets across the locations. Bids are to be submitted at designated NDIC offices in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.
This development follows the Central Bank of Nigeria’s (CBN) decision on June 3 to revoke Heritage Bank Plc’s license due to financial performance issues deemed to threaten overall stability. The NDIC subsequently began verification and payment to the failed bank’s depositors, committing to settle insured depositors within a week. Heritage Bank’s total deposits were reported at ₦650 billion, with a loan portfolio exceeding ₦700 billion. Of its 2.3 million depositors, 99 percent held balances below ₦5 million.
