- bank’s total deposits, Assets put At N650 billion
By Tolúlopé Olátúnjí
Following the revocation of Heritage Bank’s license, the Nigeria Deposit Insurance Corporation (NDIC) has listed the bank’s head office in Lagos and various branches across the country for sale.
In a publication by The PUNCH on Thursday, the NDIC detailed the sale of 48 bank properties and additional assets such as vehicles, office equipment, plants, and machinery located in 62 different sites nationwide.
“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 defunct Heritage Banks through public competitive bidding,” the publication read.
Some key properties listed for sale include Heritage Bank’s head office and annex at 143 and 130 Ahmadu Bello Way, Victoria Island, Lagos, along with six other branches in Lagos, four in Abuja, four in Rivers State, and various others nationwide.
The NDIC stated that the bidding criteria must include 10 percent of the bid amount in Certified Bank Draft, with successful bidders required to pay the balance within two weeks of notification. Prospective buyers are invited to inspect the assets and submit bids to the NDIC office in Lagos.
According to the NDIC, the bank’s total deposits were N650 billion, with a loan portfolio of approximately N700 billion. The corporation has started verifying and paying depositors with accounts holding N5 million or less, which constitutes about 99 percent of the bank’s customers.
The News Diplomat reports that the Central Bank of Nigeria (CBN) had revoked Heritage Bank’s license due to the bank’s persistent financial instability and breaches of Financial Institutions Act (BOFIA), 2020. According to the apex bank, Heritage board and management failed to improve financial performance, posing a threat to financial stability.
Stakeholders have expressed confidence in the CBN’s decision. Mustapha Chike-Obi, chairman of the Bank Directors Association of Nigeria (BDAN), stated that “ 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.”
Furthermore, the House of Representatives had passed a resolution mandating the CBN to investigate Heritage Bank’s leadership and management to identify any potential mismanagement or wrongdoing that contributed to the bank’s failure.
This motion, filed by Uchenna Okonkwo of the Idemili North/Idemili South Federal Constituency of Anambra State, also urged NDIC to review its operations to ensure it is adequately equipped to fulfill its role as deposit insurer and liquidator of failed banks.
