NDIC to auction defunct Heritage Bank’s landed assets next month 

This initiative is part of efforts to facilitate the declaration of liquidation dividends for uninsured depositors of the failed bank.

In a statement on Sunday signed by Bashir A. Nuhu, NDIC’s Director of Communication and Public Affairs, the auction aligns with the corporation’s statutory mandate as the liquidator of failed banks, as stipulated in Section 62(1)(d) of the NDIC Act, 2023.

The statement read: “In a bid to ensure timely declaration of liquidation dividends to uninsured depositors of the failed Heritage Bank (In-Liquidation), the Nigeria Deposit Insurance Corporation (NDIC) has commenced the process for the auction of landed properties and chattels of the failed bank.

“This exercise is in pursuant of the Corporation’s statutory powers as the Liquidator of failed banks under section 62 (1)(d) of the NDIC Act, 2023. This is another follow-up action sequel to the disposal of physical assets and chattels belonging to the defunct bank at its leased locations nationwide   

“Therefore, the auction of the landed assets shall be by competitive bidding in sealed bids scheduled to take place at the six (6) selected locations of the Corporation across the country, for the affected 36 branches of the failed bank beginning from Wednesday 4th December 2024.”

The exercise will take place at six designated locations: Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt, covering 36 branches of the liquidated bank.

To ensure transparency, NDIC has introduced a competitive bidding process through sealed bids.

Financial institutions are encouraged to participate in maintaining banking services at the affected locations, promoting financial inclusion. Corporate entities and private individuals are also eligible to bid on an equal footing.

The statement read: “The Corporation shall give preference to financial institutions who are willing to buy at the highest auctioned value in order to allow for the continuation of provision of banking services to the Nigerian public at the designated locations. This is desirable towards bolstering financial inclusion as envisaged by the financial system regulatory authorities. 

“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.” 

Interested bidders can inspect the assets a week before the auction and are required to provide a 10% bid security of their proposed value, submitted at the designated NDIC offices.

The NDIC has assured all participants that the process will adhere to strict principles of equity and accountability to recover the highest possible value for the liquidation exercise.

It said in its statement: “All interested parties are to make available 10% bid security of the value of their sealed bids to be dropped in the bid box provided at the specific centre out of the six locations of the Corporation as contained in the published advertisements.” 

The proceeds from the auction are intended to bolster the payment of liquidation dividends to eligible claimants, reinforcing NDIC’s commitment to financial system stability and depositor protection.

For further details, interested parties are advised to contact NDIC’s Communication and Public Affairs Department.

For further details, interested parties are advised to contact NDIC’s Communication and Public Affairs Department.

The CBN also emphasized that the action is crucial to reinforce public confidence in the Nigerian banking sector and to ensure the integrity and soundness of the financial system.

The NDIC has successfully paid over 82.36% of the total insured deposits to customers of the now-defunct Heritage Bank.