The NDIC offers other assets and the headquarters of Heritage Bank for sale

In its capacity as the bank’s liquidator, the Nigeria Deposit Insurance Corporation has put the defunct Heritage Bank’s head office in Lagos and its branches around the nation up for sale.

In an advertisement that appeared in The PUNCH on Thursday, NDIC announced the sale of its chattel, which includes automobiles, office equipment, plant, and machinery in another 62 locations around the nation, as well as the bank’s 48 properties.

A portion of the advertisement said, “The Nigeria Deposit Insurance Corporation, in the exercise of its right as Liquidator of failed Deposit Money Banks, hereby invites interested members of the general public to buy the assets (landed property and chattels of defunct Heritage Banks through public competitive bidding.”

The bank’s head office and annexe, situated at 143 and 130 Ahmadu Bello Way, Victoria Island, Lagos, respectively, were up for sale (as well as buildings, furniture, a generator, and a car). Six additional branches in Lagos, four in Abuja, four in the Rivers States, and the remaining branches around the nation were also up for sale.

Bids for the assets to be delivered to the NDIC office in Lagos are accepted from interested parties who are asked to attend an inspection.

Ten percent of the total money in the form of certified bank drafts is expected with each proposal. Upon notification, successful bidders will have two weeks to pay the remaining bid amount.

The company had previously declared that it will start paying and verifying bank depositors who had N5 million or less in their accounts. Roughly 99 percent of bank customers fall into this category.

At a media conference on the liquidation of Heritage Bank in Abuja last Wednesday, NDIC Managing Director Bello Hassan estimated that the bank had 2.3 million total depositors.

Hassan pointed out that Heritage Bank had N650 billion in total bank deposits and over N700 billion in loans.

In a statement written by Sidi Ali, Acting Director of Corporate Communication, the apex bank announced the cancellation of Heritage Bank’s license, stating that the bank had violated Section 12 (1) of the BOFIA, 2020. The inability of the bank’s board and management to enhance the bank’s financial performance poses a risk to the stability of the financial system.

This comes after a time when the CBN interacted with the bank and suggested a number of supervisory actions meant to stop the downturn. Unfortunately, the bank has not improved and there are no realistic chances that it will, thus the next required step is to revoke the license.

Stakeholders in the industry have since expressed confidence in the CBN’s determination to act in the industry’s best interests overall.

In an interview with The PUNCH, Mustapha Chike-Obi, the chairman of the Bank Directors Association of Nigeria, stated, “BDAN accepts and respects the unique position of the CBN in making this kind of decision in the interest of the banking sector.” BDAN is certain that CBN carefully considered all sides of the issue and made the optimal choice for the banking industry.

Also, the House of Representatives has passed a resolution mandating the CBN to investigate the leadership and management of Heritage Bank to “Identify any possible issues of mismanagement or wrongdoing that may have contributed to the bank’s failure.”

This came after Uchenna Okonkwo, the member representing the Idemili North/Idemili South Federal Constituency of Anambra State, adopted a resolution of urgent public interest during Tuesday’s plenary.

In order to make sure that the NDIC has the resources and tools necessary to carry out its duties as deposit insurer and investor in bank failures, it was also advised to “conduct a comprehensive review of its operations and the effectiveness of its mandate.”