The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of auctioning off the landed properties and chattels of the defunct Heritage Bank, in a bid to ensure timely payment of liquidation dividends to uninsured depositors.
This move follows the disposal of physical assets and chattels at the bank’s leased locations nationwide.
According to a statement signed by Bashir Nuhu, Director Communication and Public Affairs Department at NDIC, the auction will be conducted through competitive bidding in sealed bids, scheduled to take place at six selected NDIC locations across the country, starting from December 4, 2024.
The NDIC aims to recover commensurate values from the exercise, critical for paying liquidation dividends to eligible claimants.
In support of financial inclusion, as envisioned by financial system regulatory authorities, preference will be given to financial institutions willing to buy at the highest auctioned value, allowing for the continuation of banking services at the designated locations.
All interested buyers, including financial institutions, corporate bodies, and private individuals, are eligible to participate in the auction.
To ensure transparency and fairness, bidders must follow laid-down guidelines. These include providing 10% bid security of the value of their sealed bids and submitting bids only at designated NDIC offices.
The NDIC had announced the sale of the defunct bank properties and chattel, including vehicles, office equipment, and machinery in 62 locations across the country.
The Corporation is committed to ensuring that depositors with balances exceeding N5 million are also paid the balance of their deposits through liquidation dividends from the realization of the defunct bank’s assets and recovery of debts.
Recall that the Central Bank of Nigeria revoked Heritage Bank’s license due to its breach of Section 12 (1) of BOFIA, 2020, and its inability to improve its financial performance.
The bank’s total deposits stood at N650 billion, while its loan portfolio was approximately N700 billion.
The NDIC has already begun verifying and paying depositors with N5 million or less in their accounts, which accounts for about 99% of the bank’s customers.
Comment here