The Nigeria Deposit Insurance Corporation (NDIC) has announced that it will begin the sale of Heritage Bank’s assets on December 4, 2024.
This decision follows the revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN) earlier this year, leaving the NDIC to oversee the liquidation of the bank’s assets.
According to NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, the asset sale will cover the bank’s properties across 36 locations in Nigeria.
The sale is expected to be highly competitive, with a focus on fairness and transparency.
“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,” Nuhu said.
This sale process will include Heritage Bank’s landed properties and chattels, allowing eligible bidders to acquire these assets.
NDIC’s involvement in the sale aligns with its statutory powers under Section 62 (1)(d) of the NDIC Act, 2023, which authorizes the corporation to act as the liquidator of failed banks.
Nuhu emphasized that the sale aims to recover as much value as possible to pay liquidation dividends to eligible claimants.
“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,” he added.
To support Nigeria’s goal of financial inclusion, the NDIC stated that preference will be given to financial institutions that are willing to purchase the properties at the highest auction prices.
These financial institutions will have the opportunity to continue providing financial services at the former locations of Heritage Bank.
The NDIC’s statement clarified that corporate bodies and private individuals are also welcome to participate in the auction, provided they meet the competitive bidding standards.
“Corporate bodies and private individuals willing to compete are equally eligible to participate in the process without prejudice, as the auction shall be open and competitive to all bidders,” NDIC noted.
Interested buyers will have the chance to inspect the bank’s properties and chattels before the bidding.
The NDIC encourages all prospective buyers to submit their bids at designated NDIC offices located in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.
This asset sale comes after the CBN revoked Heritage Bank’s operating license in June, citing the bank’s financial instability as a threat to the broader financial system.
The revocation was swift and immediate, a signal of the CBN’s commitment to maintaining stability in Nigeria’s banking sector.
In the wake of the license revocation, the NDIC began the process of verifying depositors and making payments to insured customers.
The corporation assured that insured depositors would receive their funds within a week of the license revocation.
At the time of the revocation, Heritage Bank’s total deposits stood at ₦650 billion, with a loan portfolio exceeding ₦700 billion, indicating significant financial challenges.
According to the NDIC, Heritage Bank had approximately 2.3 million depositors, 99 percent of whom held balances of less than ₦5 million.
The NDIC’s primary focus now is to recover as much value from the sale of Heritage Bank’s assets as possible to provide compensation to eligible depositors and claimants.
This asset sale is expected to conclude the liquidation process, offering both institutional and individual buyers the chance to acquire valuable properties across Nigeria.