NDIC Announces Auction of Heritage Bank Assets to Pay Liquidation Dividends

The Nigeria Deposit Insurance Corporation (NDIC) has initiated the auction process for the landed properties and chattels of Heritage Bank, as part of efforts to ensure the timely distribution of liquidation dividends to uninsured depositors of the failed bank.

This action, as stated by NDIC spokesperson Bashir Nubu, is in line with the Corporation’s legal mandate as the Liquidator of failed banks under Section 62 (1)(d) of the NDIC Act, 2023. It follows the earlier disposal of physical assets and chattels of the defunct bank located at its leased sites nationwide.

The auction will be conducted through competitive sealed bids at six selected NDIC locations across the country, covering the 36 branches of Heritage Bank. The process will begin on Wednesday, December 4, 2024.

According to the statement, participants in the auction are required to adhere to specific guidelines designed to ensure transparency, fairness, equity, and accountability in the process, which is essential for the recovery of value and the subsequent payment of liquidation dividends to eligible claimants.

The NDIC will prioritize financial institutions willing to purchase the properties at the highest bid values, to ensure the continuation of banking services at these locations, in line with the financial inclusion objectives of regulatory authorities. However, corporate bodies and private individuals are also welcome to participate in the auction, as it will remain open and competitive.

Bidders will be given the opportunity to inspect the properties and chattels one week before the auction date. Interested participants must submit a 10% bid security based on the value of their sealed bids, which should be dropped in the bid box at one of the six NDIC offices listed in the published advertisements.

The designated locations for submitting bids include Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.