The Nigeria Deposit Insurance Corporation (NDIC) has listed the head office in Lagos and branches of the failed Heritage Bank for sale. This move is part of its role as the bank’s liquidator.
In an advert published on Thursday, NDIC announced the sale of 48 bank properties and various chattels, including vehicles, office equipment, and machinery at 62 locations across the country.
“The Nigeria Deposit Insurance Corporation, in the exercise of its right as Liquidator of failed Deposit Money Banks, hereby invites interested members of the general public to buy the assets (landed property and chattels) of defunct Heritage Bank through public competitive bidding,” the advert read.
The head office and its annex at 143 and 130 Ahmadu Bello Way, Victoria Island, Lagos, are listed for sale, including buildings, chattels, generators, and motor vehicles. Additionally, six branches in Lagos, four in Abuja, four in Rivers State, and several others nationwide are also available for purchase.
Interested parties are invited to inspect the assets and submit bids to the NDIC office in Lagos. Bids must include 10 percent of the bid amount in a Certified Bank Draft. Successful bidders must pay the balance within two weeks of notification.
Earlier, NDIC began verifying and paying depositors with accounts holding N5 million or less, representing about 99 percent of the bank’s customers. NDIC Managing Director Bello Hassan stated that Heritage Bank had 2.3 million depositors, with total deposits of N650 billion and a loan portfolio of approximately N700 billion.
The Central Bank of Nigeria (CBN) revoked Heritage Bank’s license due to breaches of Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020. According to Acting Director of Corporate Communication Sidi Ali, the bank’s management failed to improve its financial performance, posing a threat to financial stability. Despite CBN’s supervisory efforts, the bank continued to decline, leading to the license revocation.
Industry stakeholders have expressed support for CBN’s decision. Mustapha Chike-Obi, chairman of the Bank Directors Association of Nigeria (BDAN), stated, “BDAN accepts and respects the unique position of the CBN in making this kind of decision in the interest of the banking sector. BDAN is confident that CBN analyzed all the pros and cons of this decision and took the best decision in the interest of the banking sector.”
The House of Representatives has also mandated CBN to investigate Heritage Bank’s leadership and management to identify any mismanagement or wrongdoing contributing to the bank’s failure. This followed a motion of urgent public importance filed by Uchenna Okonkwo, representing Idemili North/Idemili South Federal Constituency of Anambra State.
Additionally, the House urged NDIC to review its operations and ensure it is adequately equipped to fulfill its role as deposit insurer and liquidator of failed banks.
