NDIC to Begin Heritage Bank Asset Sale in December Following License Revocation by CBN
The Nigeria Deposit Insurance Corporation (NDIC) has announced that it will commence the sale of assets belonging to Heritage Bank on December 4, 2024. Bashir Nuhu, NDIC’s Director of Communication and Public Affairs, shared this information in a recent statement.
According to Nuhu, the sale will encompass Heritage Bank’s real estate assets and will be conducted in line with the NDIC’s statutory authority as the liquidator of failed banks, pursuant to Section 62 (1)(d) of the NDIC Act, 2023.
“The sale of assets is by competitive bidding and will take place at the 36 affected locations of the bank across the country, starting from Wednesday, December 4, 2024,” the NDIC stated.
To ensure transparency and fair competition, the NDIC outlined that buyers participating in the auction must follow established guidelines designed to promote equity and accountability. These measures are intended to maximize the value recovery, which is essential for paying liquidation dividends to eligible claimants.
The NDIC emphasized its preference for financial institutions interested in purchasing the properties at auction, especially those committed to continuing financial services at the vacated locations. Corporate bodies and private individuals may also participate in the open, competitive process, with no prejudice toward any particular bidder.
Interested buyers will have the opportunity to inspect properties and assets before placing their bids. Bids can be submitted at designated NDIC offices located in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.
This development follows the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank’s license in June 2024. The CBN attributed the revocation to the bank’s failure to improve its financial position, which posed a risk to financial stability. Following the revocation, the NDIC began verifying and reimbursing depositors of the failed bank, pledging to settle insured depositors within a week.
According to NDIC data, Heritage Bank held total deposits of ₦650 billion and a loan portfolio exceeding ₦700 billion. Of its 2.3 million depositors, 99% had balances below ₦5 million.
