NDIC Lists Heritage Bank’s Head Office, Other Assets For Sale

The Nigeria Deposit Insurance Corporation (NDIC) has announced the listing for sale of the head office, branches, and other assets of the now-defunct Heritage Bank, marking a significant move in its role as the liquidator of the collapsed bank.

The properties and chattels located across the country were publicized for sale in an advertorial in Punch on Thursday.

NDIC’s notice invites interested members of the public to engage in a competitive bidding process for the assets of Heritage Bank, which include landed properties and chattels spread across 62 locations nationwide.

“The sale includes the bank’s head office at 143 Ahmadu Bello Way, its annex at 130 Ahmadu Bello Way in Victoria Island, Lagos, along with six other branches in Lagos, four in Abuja, four in Rivers State, and others across the country,” the notice detailed.

Prospective buyers are encouraged to inspect the assets and submit their bids along with a 10% deposit of their bid amount in the form of a Certified Bank Draft.

The NDIC notice specifies that successful bidders will have two weeks from the notification to pay the remaining balance of the bid price.

This liquidation move follows the earlier announcement by NDIC about the verification and payment process for depositors of Heritage Bank, focusing initially on those with deposits of N5 million or less, which constitute about 99% of the bank’s customer base.

The Managing Director of NDIC, Bello Hassan, underscored the dire financial straits of the bank at a press briefing in Abuja, revealing that Heritage Bank had a customer base of 2.3 million with deposits totalling N650 billion against a loan portfolio of N700 billion.

The Central Bank of Nigeria (CBN) had revoked Heritage Bank’s license citing breaches of financial regulations and an inability to improve financial performance, which posed threats to financial stability.

The decision was described by the CBN as “necessary following unsuccessful efforts to stem the bank’s decline.”

The Bank Directors Association of Nigeria (BDAN) and other stakeholders have expressed support for the CBN’s decision, recognizing it as essential for the health of the banking sector.

Following the bank’s collapse, the House of Representatives has also called for an investigation into the management of Heritage Bank and a comprehensive review of NDIC’s operations to enhance its role as a deposit insurer and liquidator of failed banks.