The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to auction properties and assets of the defunct Heritage Bank to recover funds for uninsured depositors.
This action, according to the NDIC, aligns with its statutory role as the liquidator of failed banks under Section 62(1)(d) of the NDIC Act, 2023. The auction, slated to begin on Wednesday, will involve competitive bidding for the bank’s properties and chattels across 36 sites nationwide.
A statement issued by the NDIC on Sunday emphasized the need for this process to expedite the distribution of liquidation dividends to affected depositors. The statement read, “In a bid to ensure the timely declaration of liquidation dividends to uninsured depositors of the failed Heritage Bank, the Nigeria Deposit Insurance Corporation has commenced the process for the sale of landed properties and chattels of the defunct bank.”
The NDIC affirmed the transparency of the sales process, with a clear objective to allocate recovered funds toward paying dividends to depositors. “The sale of landed assets will be by competitive bidding and will take place at the 36 affected locations of the bank across the country, starting Wednesday 4th December 2024,” the statement detailed.
Additionally, the NDIC has announced that financial institutions interested in purchasing these assets will be given priority, provided they offer the highest bids.
The statement, signed by NDIC’s Director of Communication and Public Affairs, Bashir A. Nuhu, noted, “In order to allow the continuation of the provision of financial services to the Nigerian public at the locations of the closed bank and to bolster financial inclusion, preference shall be given to financial institutions willing to buy any of the properties at the highest auction prices, along with all the physical assets at wholesale value.”
However, the NDIC clarified that the auction is open to all, including corporate bodies and private individuals, ensuring fair competition among bidders. “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,” the statement added.
Prospective buyers are invited to inspect the assets on-site before bidding, with sealed bids and a 10 percent bid security deposit to be submitted at designated NDIC offices in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.
This initiative follows the recent disposal of other Heritage Bank assets and underscores NDIC’s ongoing commitment to recovering maximum value from the bank’s liquidation.
