The Nigerian Deposit Insurance Corporation (NDIC) has announced that the sale of Heritage Bank’s assets will commence on December 4, 2024. NDIC Head of Communications and Public Relations, Mr. Bashir Nuhu, disclosed this information in a statement. This comes after the liquidation of Heritage Bank earlier in the year. He noted that the sale will include the bank’s assets and will be conducted per NDIC’s statutory powers as liquidator of insolvent banks as provided for in section 62(1)(d) of the NDIC Act, 2023.
“The sale of the assets will be conducted through a bidding process and will take place at the 36 locations of the affected banks across the country starting from Wednesday, December 4, 2024,” NDIC said. “Buyers wishing to participate in the auction are expected to follow established guidelines designed to ensure transparency, fair competition, impartiality and accountability to ensure they realize appropriate value from the auction.” This is crucial for the payment of liquidation dividends to eligible applicants.”
NDIC said: “In order to enable the provision of financial services to Nigerians in closed banking locations, thereby enhancing financial inclusion, priority will be given to financial institutions to those willing to purchase real estate at wholesale prices along with all tangible assets at the best auction price.
“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.”
Heritage Bank’s Liquidation
This development comes months after the Central Bank of Nigeria (CBN) cancelled Heritage Bank Plc’s license will be effective with immediate effect. In a statement on June 3, the CBN said the withdrawal was due to Heritage Bank’s failure to improve its financial performance, posing a threat to its financial stability.
Immediately after the withdrawal, the NDIC began issuing cheques and making payments to depositors of the failed bank.
The company said it would bill insured customers within a week. The report noted that Heritage Bank’s total deposits were ₦650 billion, while its loan portfolio was over ₦700 billion. According to the NDIC, Heritage Bank had a total of 2.3 million depositors, of which 99% had total balances of less than ₦5 million.
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