Heritage Bank's Head Office and 47 Other Properties Listed for Sale by NDIC

NDIC sells Heritage Bank's headquarters and 47 other assets. 

NDIC sells Heritage Bank's headquarters and 47 other assets after CBN revokes license due to non-compliance with BOFIA, 2020.

The Nigeria Deposit Insurance Corporation, NDIC, acting as Heritage Bank's liquidator, announced on Thursday, June 13, the sale of 48 properties, including the head office in Lagos and branches across the country. Vehicles, office equipment, and machinery from 62 locations across the country are also for sale.

The NDIC has put up for sale the head office and annex of Heritage Bank, situated at 143 and 130 Ahmadu Bello Way, Victoria Island, Lagos. The sale includes buildings, furniture, generators, and vehicles. Additionally, six branches in Lagos, four in Abuja, four in Rivers State, and several others across the country are also available for purchase. Interested buyers can inspect the assets and submit bids at the NDIC office in Lagos.

Prospective bidders must submit their offers with a 10% deposit in the form of a certified bank draft. Successful bidders will be required to settle the remaining balance within two weeks of notification. This sale comes after the NDIC initiated the verification and payment process for Heritage Bank depositors with balances of N5 million or less, accounting for approximately 99% of the bank's customer base.

Earlier, the NDIC Managing Director, Bello Hassan, revealed that Heritage Bank had a total of 2.3 million depositors. He also disclosed that the bank held deposits totaling N650 billion and a loan portfolio of approximately N700 billion. This sale presents an opportunity for interested parties to acquire Heritage Bank's assets, including its head office and branches nationwide.

The Central Bank of Nigeria (CBN) has announced the revocation of Heritage Bank's operating license, as stated in a release signed by Acting Director of Corporate Communication, Sidi Ali. This decisive action was taken due to the bank's non-compliance with Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA), 2020. Despite efforts, the bank's leadership failed to improve its financial standing, posing a significant risk to the stability of the financial system.

“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the licence the next necessary step.”

Industry stakeholders have largely endorsed the Central Bank of Nigeria's (CBN) decision, deeming it a necessary step to protect the integrity of the financial sector. According to Mustapha Chike-Obi, Chairman of the Bank Directors Association of Nigeria. 

The CBN's action demonstrates a commitment to upholding the highest standards of governance and stability in the banking industry, and we fully support this move, “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 confident that CBN analyzed all the pros and cons of this decision and took the best decision in the interest of the banking sector.”

“The House of Representatives has passed a resolution directing the CBN to investigate the leadership and management of Heritage Bank for possible mismanagement or wrongdoing that may have contributed to the bank's failure.”

Following a motion of urgent public importance introduced by Uchenna Okonkwo, the representative for Anambra State's Idemili North/Idemili South Federal Constituency, during Tuesday's plenary session, the decision was made. Okonkwo's motion sparked a swift response, leading to the adoption of the measure aimed at addressing the pressing issue at hand.

“The resolution also calls on the NDIC to conduct a thorough review of its operations and assess the effectiveness of its mandate to ensure it is sufficiently equipped and funded to fulfill its responsibilities as a deposit insurer and manager of failed banks.”