NDIC Lists Heritage Bank’s Head Office, Other Assets For Sale

The Nigeria Deposit Insurance Corporation (NDIC) has announced the sale of the head office and various assets of the defunct Heritage Bank.

This move comes as part of NDIC’s responsibilities as the liquidator for failed banks, following the revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN).

This was sighted an advertorial published in The PUNCH on Thursday, the NDIC detailed the properties and assets available for purchase.

The listings include 48 properties and chattel in 62 locations across the country.

Notably, the bank’s head office and annex located at 143 and 130 Ahmadu Bello Way, Victoria Island, Lagos, are up for sale.

The assets include buildings, office equipment, vehicles, generators, and machinery.

Other properties listed include six branches in Lagos, four branches in Abuja, four in Rivers State, and additional branches nationwide.

Interested buyers are invited to inspect the properties and submit their bids to the NDIC office in Lagos.

All bids must include 10% of the bid amount in a Certified Bank Draft, with successful bidders required to pay the remaining balance within two weeks of notification.

Earlier, the NDIC announced the verification and payment process for depositors with N5 million or less in their accounts.

This group represents about 99% of the bank’s customers.

At a recent media briefing, NDIC Managing Director Bello Hassan revealed that Heritage Bank had approximately 2.3 million depositors, with total deposits amounting to N650 billion and a loan portfolio of about N700 billion.

The decision to revoke Heritage Bank’s license was announced by the CBN, citing the bank’s breach of Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020. Sidi Ali, Acting Director of Corporate Communications at CBN, explained that the bank’s financial performance had deteriorated despite multiple supervisory measures, posing a threat to financial stability.

The CBN determined that revoking the license was the necessary step after exhausting other options to stem the bank’s decline.

Stakeholders in the banking sector have expressed their support for the CBN’s decision.

Mustapha Chike-Obi, Chairman of the Bank Directors Association of Nigeria (BDAN), stated that BDAN respects the CBN’s unique position and trusts that the decision was made after thorough analysis.

He emphasized that the action was in the best interest of the banking sector.

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In response to the bank’s failure, the House of Representatives has passed a resolution instructing the CBN to investigate the management and leadership of Heritage Bank for any potential mismanagement or wrongdoing.

This decision came after a motion of urgent public importance was filed by Uchenna Okonkwo, a representative from Anambra State.

Additionally, the House urged the NDIC to conduct a comprehensive review of its operations to ensure it is well-equipped to fulfill its role as a deposit insurer and liquidator of failed banks.