NDIC Lists Heritage Bank's Assets for Sale

The Nigeria Deposit Insurance Corporation (NDIC) has announced the sale of Heritage Bank's head office in Lagos and multiple branches nationwide, as part of its liquidation process for the failed bank.

 

In an advertorial published in The PUNCH on Thursday, NDIC disclosed that it is selling 48 properties and chattels including vehicles, office equipment, plants, and machinery across 62 locations. The head office and its annex on Ahmadu Bello Way, Victoria Island, Lagos, are among the assets listed for sale.

 

"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 advertorial stated.

 

The sale includes six branches in Lagos, four in Abuja, four in Rivers State, and others across the country. Interested buyers are invited to inspect the assets and submit bids to the NDIC office in Lagos. Bids must include 10% of the bid amount in a Certified Bank Draft, with the balance payable within two weeks of notification.

 

Earlier, the NDIC began verifying and paying depositors with accounts holding N5 million or less, representing about 99% of the bank’s customers. NDIC Managing Director Bello Hassan revealed that Heritage Bank had 2.3 million depositors, with total deposits of N650 billion and a loan portfolio of around N700 billion.

 

The Central Bank of Nigeria (CBN) revoked Heritage Bank’s license, citing breaches of Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA), 2020. The CBN noted that despite efforts to stabilize the bank, its financial performance continued to decline, posing a threat to financial stability.

 

"This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The board and management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability. This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the licence the next necessary step," the CBN statement, signed by Acting Director of Corporate Communication Sidi Ali, said.

 

Stakeholders in the banking sector have expressed confidence in the CBN's decision. Mustapha Chike-Obi, Chairman of the Bank Directors Association of Nigeria, 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 the CBN to investigate Heritage Bank's leadership and management to identify any issues of mismanagement or wrongdoing that may have contributed 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 the NDIC to review its operations and effectiveness to ensure it is equipped to fulfill its role as a deposit insurer and liquidator of failed banks.