By Abiola Olawale
The Nigeria Deposit Insurance Corporation (NDIC) is set to launch an auction of various assets that were previously owned by the now-defunct Heritage Bank.
This auction is expected to kick off on Wednesday, December 4, 2024. The NDIC explained that the auction is a significant step to support the declaration of liquidation dividends for depositors who were uninsured at the time the bank’s licence was revoked by the Central Bank of Nigeria (CBN).
The agency added that by selling these assets, affected individuals will receive some form of compensation from the liquidation process.
A statement signed by Bashir A. Nuhu, NDIC’s Director of Communication and Public Affairs, said the auction aligns with the corporation’s statutory mandate as the liquidator of failed banks, as stipulated in Section 62(1)(d) of the NDIC Act, 2023.
The statement reads in part: “In a bid to ensure timely declaration of liquidation dividends to uninsured depositors of the failed Heritage Bank (In-Liquidation), the Nigeria Deposit Insurance Corporation (NDIC) has commenced the process for the auction of landed properties and chattels of the failed bank.
“This exercise is in pursuant of the Corporation’s statutory powers as the Liquidator of failed banks under section 62 (1)(d) of the NDIC Act, 2023. This is another follow-up action sequel to the disposal of physical assets and chattels belonging to the defunct bank at its leased locations nationwide
“Therefore, the auction of the landed assets shall be by competitive bidding in sealed bids scheduled to take place at the six (6) selected locations of the Corporation across the country, for the affected 36 branches of the failed bank beginning from Wednesday 4th December 2024.”
The auction exercise is expected to take place at six designated locations: Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt, covering 36 branches of the liquidated bank.
The statement added: “Interested bidders can inspect the assets a week before the auction and are required to provide a 10% bid security of their proposed value, submitted at the designated NDIC offices.
“The NDIC has assured all participants that the process will adhere to strict principles of equity and accountability to recover the highest possible value for the liquidation exercise.
“All interested parties are to make available 10% bid security of the value of their sealed bids to be dropped in the bid box provided at the specific centre out of the six locations of the Corporation as contained in the published advertisements.”
The New Diplomat reports that in June, the Central Bank of Nigeria (CBN) revoked the banking licence of Heritage Bank Plc with immediate effect, citing the bank’s persistent financial instability and breach of regulatory requirements.
The CBN also explained that its decision to revoke Heritage Bank’s licence was part of its mandate to maintain a sound financial system in Nigeria, as outlined under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
In a statement, the CBN disclosed that Heritage Bank had failed to adhere to Section 12 (1) of BOFIA 2020, which necessitated regulatory intervention.
