NDIC initiates auction of Heritage Bank’s assets to boost liquidation payouts

By Seun Ibiyemi 

The Nigeria Deposit Insurance Corporation (NDIC) has commenced an auction process to sell the landed properties and other assets of the defunct Heritage Bank, with the aim of generating funds for liquidation dividends to compensate uninsured depositors.

In statement made available to NewsDirect by Director Communication and Public Affairs Department, Bashir A. Nuhu this auction exercise aligns with the NDIC’s statutory authority to liquidate failed banks, as outlined in section 62 (1)(d) of the NDIC Act, 2023. 

Following an initial round of asset disposals across the bank’s former branches, this latest step marks a significant push to recover additional funds from the bank’s physical assets.

The auction will employ a sealed-bid system, conducted across six strategic NDIC locations—Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt—starting on December 4, 2024. Bids will be open for properties across 36 former Heritage Bank branches nationwide.

Participants must follow established guidelines to promote transparency and fair competition, crucial for maximizing asset recovery and supporting equitable liquidation payouts to eligible depositors. 

The NDIC will prioritise offers from financial institutions that can uphold banking services at these locations, supporting broader financial inclusion efforts championed by regulatory authorities. However, corporate entities and private buyers are also invited to bid.

Prospective bidders will have the chance to inspect the assets one week prior to the auction date. Bidders must provide a 10% bid security deposit with their sealed offers, which are to be submitted at one of the NDIC’s designated centers.