“HERITAGE BANK ASSETS, INCLUDING HEAD OFFICE, LISTED FOR SALE BY NDIC”

Babatunji Wusu –

The Nigeria Deposit Insurance Corporation (NDIC) has taken a significant step in its role as the liquidator of the collapsed Heritage Bank by announcing the listing for sale of its head office, branches, and other assets.

In an advertorial published in Punch on Thursday, the NDIC publicized the sale of properties and chattels spread across the country. Interested members of the public are invited to participate in a competitive bidding process for these assets, which include landed properties and chattels across 62 locations nationwide.

Among the assets up for sale are the bank’s head office at 143 Ahmadu Bello Way, its annex at 130 Ahmadu Bello Way in Victoria Island, Lagos, and several branches in Lagos, Abuja, Rivers State, and other locations nationwide, as detailed in the notice.

Prospective buyers are encouraged to inspect the assets and submit bids along with a 10% deposit of their bid amount in the form of a Certified Bank Draft. Successful bidders will have two weeks from the notification to pay the remaining balance of the bid price.

This liquidation process follows NDIC’s earlier announcement regarding the verification and payment process for depositors of Heritage Bank, with a focus on those with deposits of N5 million or less, constituting about 99% of the bank’s customer base.

Bello Hassan, the Managing Director of NDIC, highlighted the dire financial situation of Heritage Bank, stating that it had a customer base of 2.3 million with deposits totaling N650 billion against a loan portfolio of N700 billion.

The Central Bank of Nigeria (CBN) had revoked Heritage Bank’s license due to breaches of financial regulations and an inability to improve financial performance, posing threats to financial stability. This decision was described by the CBN as necessary following unsuccessful efforts to reverse the bank’s decline.

The Bank Directors Association of Nigeria (BDAN) and other stakeholders have voiced support for the CBN’s decision, recognizing its importance for the health of the banking sector.

In the wake of the bank’s collapse, the House of Representatives has 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.