On Wednesday, December 4, 2024, the Nigeria Deposit Insurance Corporation (NDIC) is scheduled to start auctioning off the landed properties and other assets of the now-defunct Heritage Bank.
This program is part of an effort to make it easier for uninsured depositors of the bank that failed to declare liquidation dividends. The auction is following the corporation’s legislative role as the liquidator of insolvent banks, as stated in Section 62(1)(d) of the NDIC Act, 2023, according to a statement released on Sunday and signed by Bashir A. Nuhu, NDIC’s Director of Communication and Public Affairs.
The statement available to BrandSpur Nigeria news today, partly reads: “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 added.
The 36 branches of the liquidated bank will be covered by the exercise, which will be held at six specific locations: Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.
NDIC has implemented a sealed bid, competitive bidding process to guarantee transparency. Financial institutions are urged by the NDIC to bid to support financial inclusion, financial institutions are urged to take part in preserving banking services in the impacted sites. On an equal basis, private persons and corporate entities can also bid.
Continuing, the statement reveals: “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 for 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,” it added.
A week before the auction, interested bidders have the opportunity to view the assets. They must also submit a 10% bid security of their suggested value to the appropriate NDIC offices.
However, all parties have received assurances from the NDIC that the procedure will follow stringent accountability and equality guidelines to maximize the liquidation exercise’s value.
In the NDIC statement: “All interested parties are to make available 10% bid security of the value of their sealed bids to be dropped in the bid box provided at the specific centre out of the six locations of the Corporation as contained in the published advertisements.”
The auction’s proceeds will be used to support the distribution of liquidation payouts to qualified claimants, demonstrating NDIC’s dedication to depositor protection and the soundness of the financial system.
Interested parties are encouraged to get in touch with NDIC’s Communication and Public Affairs Department for more information.
