In a major move to liquidate the assets of the defunct Heritage Bank, the Nigeria Deposit Insurance Corporation (NDIC) has announced the sale of the bank’s properties and chattels. This follows the Central Bank of Nigeria’s (CBN) revocation of the bank’s license due to persistent financial instability and breaches of the Banking and Other Financial Institutions Act (BOFIA) 2020.
The NDIC, acting as the liquidator, listed the bank’s head office at 143 Ahmadu Bello Way, Victoria Island, Lagos, and its annex at 130 Ahmadu Bello Way, along with other branches and assets across Nigeria, for sale. The properties available for purchase include six branches in Lagos, four in Abuja, four in Rivers State, and others scattered nationwide. The corporation also put up vehicles, office equipment, plant, and machinery from 62 locations for public competitive bidding.
Interested buyers are invited to inspect the assets and submit their bids to the NDIC office in Lagos, accompanied by a Certified Bank Draft covering 10% of the bid amount. Successful bidders will be notified and required to pay the remaining balance within two weeks.
This announcement comes as the NDIC begins the verification and payment process for depositors with N5 million or less in their accounts, who constitute about 99% of Heritage Bank’s customers. The total deposits at the bank amounted to N650 billion, while its loan portfolio stood at approximately N700 billion.
Bello Hassan, the Managing Director of NDIC, highlighted the severe financial issues faced by Heritage Bank, which led to the revocation of its license. The CBN, after exhaustive supervisory measures and engagements with the bank, determined that its continued operation posed a threat to financial stability, making the license revocation inevitable.
The decision by the CBN has garnered support from various stakeholders in the banking sector. Mustapha Chike-Obi, Chairman of the Bank Directors Association of Nigeria (BDAN), expressed confidence in the CBN’s judgment, emphasizing that the decision was made in the best interest of the banking sector.
In response to the situation, the House of Representatives has called for an investigation into the management and leadership of Heritage Bank to identify any potential mismanagement or wrongdoing that may have led to its collapse. They also urged the NDIC to review its operations to ensure it is fully equipped to fulfill its role as a deposit insurer and liquidator of failed banks.
