NDIC plans auction of Heritage Bank assets to recover funds for depositors

The Nigeria Deposit Insurance Corporation has announced plans to sell off properties and assets belonging to the defunct Heritage Bank in a bid to recover funds for uninsured depositors.

This move, which the NDIC describes as crucial, is part of its statutory mandate as the liquidator of failed banks under Section 62(1)(d) of the NDIC Act, 2023.

The exercise, scheduled to begin on Wednesday, will involve competitive bidding for the bank’s landed properties and chattels located at 36 sites nationwide.

A statement from the NDIC on Sunday 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 exercise is pursuant to the Corporation’s statutory powers as liquidator of failed banks under Section 62(1)(d) of the NDIC Act, 2023. It also comes after the exercise for the sale of physical assets of the defunct bank at its leased locations nationwide.

“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.”

According to the NDIC, the sales process will be transparent and fair, ensuring that recovered funds are appropriately channelled towards paying liquidation dividends to affected claimants.

In a statement signed by the Director of Communication and Public Affairs, Bashir A. Nuhu, the NDIC noted that financial institutions keen on purchasing these properties would be prioritised, provided they offer the highest auction prices.

This preference is part of efforts to sustain the provision of financial services and promote financial inclusion in affected areas.
However, the auction remains open to other corporate bodies and private individuals, with equal opportunities for all bidders.

The statement read, “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, 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 NDIC further revealed that prospective buyers would be granted access to inspect the properties and assets at their respective locations before making their bids.

Interested bidders are required to submit their sealed bids, accompanied by a 10 per cent bid security deposit, at designated NDIC offices in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.

This initiative follows the recent disposal of other physical assets of Heritage Bank and represents the NDIC’s continued efforts to recover maximum value from the bank’s liquidation.