The Nigeria Deposit Insurance Corporation (NDIC) announced that the sale of Heritage Bank’s assets will commence on December 4, 2024. The asset sale, which includes the bank’s landed properties across 36 locations, follows the Central Bank of Nigeria’s (CBN) decision to revoke Heritage Bank’s license earlier this year due to financial instability concerns.
According to Bashir Nuhu, NDIC’s Director of Communication and Public Affairs, the sales process aligns with the NDIC’s role as liquidator under the NDIC Act, 2023, specifically section 62 (1)(d). The auction, which will be conducted through competitive bidding, is intended to maximize value recovery for the benefit of eligible claimants, including depositors of the failed bank.
To ensure transparency and fair competition, the NDIC has outlined specific guidelines for prospective buyers. Priority will be given to financial institutions willing to purchase both the properties and physical assets at wholesale prices to continue providing financial services at Heritage Bank’s former locations, thereby supporting financial inclusion. Corporate entities and private individuals are also invited to participate in the open auction process, which includes an inspection period for bidders.
The NDIC has designated its offices in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt as submission points for bids.
Background and Financial Impact
The CBN revoked Heritage Bank’s license on June 3, 2024, citing the bank’s poor financial performance and its threat to the stability of Nigeria’s banking system. Following the license revocation, the NDIC promptly initiated payment processes for insured depositors. Heritage Bank’s deposit portfolio was reported at ₦650 billion, with a loan portfolio exceeding ₦700 billion.
With approximately 2.3 million depositors, the NDIC noted that 99% of account holders had balances below ₦5 million. The liquidation process, alongside the asset sale, is expected to facilitate the payment of dividends to eligible depositors and restore some measure of financial stability for affected customers.
The NDIC’s asset sale marks a critical phase in the resolution of Heritage Bank’s collapse and reflects efforts to recoup funds for depositors while maintaining access to financial services at affected locations.
