The Nigeria Deposit Insurance Corporation (NDIC) says it will begin the auction of landed properties and chattels belonging to the defunct Heritage Bank, from Wednesday, December 4, 2024.
This, it said, is in furtherance of efforts to facilitate the declaration of liquidation dividends for uninsured depositors of the failed bank.
NDIC’s Director of Communication and Public Affairs, Bashir A. Nuhu, said in a statement that the auction aligns with the corporation’s statutory mandate as the liquidator of failed banks, as stipulated in Section 62(1)(d) of the NDIC Act, 2023.
“In a bid to ensure timely declaration of liquidation dividends to uninsured depositors of the failed Heritage Bank (In-Liquidation), the Nigeria Deposit Insurance Corporation (NDIC) has commenced the process for the auction of landed properties and chattels of the failed bank.
“This exercise is in pursuant of the Corporation’s statutory powers as the Liquidator of failed banks under section 62 (1)(d) of the NDIC Act, 2023. This is another follow-up action sequel to the disposal of physical assets and chattels belonging to the defunct bank at its leased locations nationwide
“Therefore, the auction of the landed assets shall be by competitive bidding in sealed bids scheduled to take place at the six (6) selected locations of the Corporation across the country, for the affected 36 branches of the failed bank beginning from Wednesday 4th December 2024.”
It said the exercise will take place at six designated locations: Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt, covering 36 branches of the liquidated bank.
The NDIC further stated that to ensure transparency, it had introduced a competitive bidding process through sealed bids and urged financial institutions to participate in maintaining banking services at the affected locations, promoting financial inclusion.
“Corporate entities and private individuals are also eligible to bid on an equal footing,” it added.
Continuing, it said: “The Corporation shall give preference to financial institutions who are willing to buy at the highest auctioned value in order to allow for the continuation of provision of banking services to the Nigerian public at the designated locations. This is desirable towards bolstering financial inclusion as envisaged by the financial system regulatory authorities.
“However, Corporate bodies and Private individuals willing to compete are equally eligible to compete in the process without prejudice, as the auction shall be open and competitive to all bidders.”
The NDIC said interested bidders can inspect the assets a week before the auction and are required to provide a 10 per cent bid security of their proposed value, submitted at the designated NDIC offices.
It also assured all participants that the process will adhere to strict principles of equity and accountability to recover the highest possible value for the liquidation exercise.
The proceeds from the auction are intended to bolster the payment of liquidation dividends to eligible claimants, reinforcing NDIC’s commitment to financial system stability and depositor protection.
