Next Month, the NDIC Will Auction off the Landed Assets of the Now-Defunct Heritage Bank.

The Nigeria Deposit Insurance Corporation (NDIC) is preparing to initiate the auction of real estate and personal property belonging to the now-defunct Heritage Bank, commencing on Wednesday, December 4, 2024. This action is part of the broader efforts to enable the distribution of liquidation dividends to uninsured depositors of the failed institution. In a statement released on Sunday and signed by Bashir A. Nuhu, the NDIC’s Director of Communication and Public Affairs, it was noted that the auction is in accordance with the corporation’s legal responsibilities as the liquidator of failed banks, as outlined in Section 62(1)(d) of the NDIC Act, 2023. The statement indicated: “To facilitate the prompt declaration of liquidation dividends to uninsured depositors of the Heritage Bank (In-Liquidation), the Nigeria Deposit Insurance Corporation (NDIC) has initiated the auction process for the real estate and personal property of the failed bank. “This initiative is in line with the Corporation’s statutory authority as the Liquidator of failed banks under Section 62(1)(d) of the NDIC Act, 2023. This follows previous actions taken to dispose of physical assets and personal property belonging to the defunct bank at its leased premises nationwide. “Consequently, the auction of the real estate will be conducted through competitive bidding in sealed bids, scheduled to occur at six designated locations of the Corporation across the country, covering the 36 branches of the failed bank, starting from Wednesday, December 4, 2024.” The auction will be held at six specified locations: Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt, encompassing 36 branches of the liquidated bank. To promote transparency, the NDIC has implemented a competitive bidding process utilizing sealed bids. The NDIC encourages financial institutions to participate in the bidding process and to contribute to the continuity of banking services at the affected locations, thereby fostering financial inclusion. Corporate entities and private individuals are also invited to bid on an equal basis. The announcement stated: "The Corporation will prioritize financial institutions that are prepared to purchase at the highest auctioned price, facilitating the ongoing provision of banking services to the Nigerian populace at specified locations. This approach is aimed at enhancing financial inclusion as envisioned by the regulatory authorities of the financial system. "Nonetheless, corporate entities and private individuals who wish to participate are equally permitted to engage in the bidding process without bias, as the auction will be accessible and competitive for all bidders." Prospective bidders may examine the assets one week prior to the auction and must submit a bid security of 10% of their proposed value at the designated NDIC offices. The NDIC has guaranteed all participants that the process will follow stringent principles of fairness and accountability to maximize the recovery value during the liquidation process. The announcement further states: "All interested parties must provide a 10% bid security based on the value of their sealed bids, which should be submitted in the bid box located at one of the six designated Corporation locations as outlined in the published advertisements." The revenue generated from the auction is intended to support the distribution of liquidation dividends to eligible claimants, thereby reinforcing the NDIC's dedication to financial system stability and the protection of depositors. For additional information, interested parties are encouraged to reach out to the NDIC’s Communication and Public Affairs Department.