NDIC Lists Heritage Bank Head Office and Assets for Sale

The Nigeria Deposit Insurance Corporation (NDIC) has listed the head office and branches of the failed Heritage Bank for sale as part of its liquidation process. NDIC announced the sale of 48 properties and chattels, including vehicles, office equipment, plants, and machinery at 62 locations nationwide in an advertorial published in The PUNCH on Thursday.

The advertorial stated, “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 the defunct Heritage Bank through public competitive bidding.”

The head office and annex, located at 143 and 130 Ahmadu Bello Way, Victoria Island, Lagos, are listed for sale, along with six other branches in Lagos, four in Abuja, four in Rivers State, and others across the country.

Interested parties are invited for inspections and to submit bids, which must include 10 percent of the bid amount in Certified Bank Draft. Successful bidders will have two weeks to pay the balance upon notification.

Previously, the NDIC began verifying and paying depositors with N5 million or less in their accounts, 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 about N700 billion.

The Central Bank of Nigeria (CBN) revoked Heritage Bank’s license due to its breach of Section 12 (1) of BOFIA, 2020, and the bank’s inability to improve its financial performance, posing a threat to financial stability. The CBN’s decision followed extensive engagement and supervisory steps that failed to stem the bank’s decline.

Stakeholders, including the Bank Directors Association of Nigeria (BDAN) Chairman Mustapha Chike-Obi, expressed confidence in the CBN’s decision, acknowledging its thorough analysis and consideration of the sector’s best interests. The House of Representatives has also mandated the CBN to investigate the leadership and management of Heritage Bank to identify any potential mismanagement or wrongdoing contributing to the bank’s failure.