On Monday, the Nigeria Deposit Insurance Corporation (NDIC) announced that it will begin the sale of Heritage Bank’s assets on Wednesday, December 4, 2024.
News About Nigeria reports that this development follows the revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN) several months ago.
Recall that the apex bank stated on June 3 that the revocation of the bank’s license was due to its failure to improve financial performance, posing a threat to financial stability.
In a recent statement, NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, disclosed that the sale of the bank’s assets will be competitive, with only the highest bidders eligible to purchase.
Nuhu added that the sale will occur at all 36 affected locations of the bank across the country, and buyers will have the opportunity to inspect the properties before making purchases.
He further noted that the sale of Heritage Bank’s landed properties aligns with NDIC’s statutory powers as the liquidator of failed banks, under section 62 (1)(d) of the NDIC Act, 2023.
The statement partly reads, “The sale of assets is by competitive bidding and will take place at the 36 affected locations of the bank across the country, starting Wednesday, December 4, 2024. Buyers who wish to participate in the auction are expected to follow the established guidelines aimed at ensuring transparency, fair competition, equity, and accountability to enable recovery of commensurate values from the exercise. This is vital for the payment of liquidation dividends to eligible claimants.
“To facilitate the continuation of financial services for the Nigerian public at the closed bank’s locations, and to bolster financial inclusion, preference shall be given to financial institutions willing to buy properties at the highest auctioned prices along with all physical assets at wholesale value.
“However, corporate bodies and private individuals are also eligible to compete in the open and competitive process without prejudice. Furthermore, bidders will be given the opportunity to inspect the properties and chattels at all locations prior to the disposal. Interested bidders are advised to submit their bids at designated NDIC offices in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.”
