The Nigeria Deposit Insurance Corporation (NDIC) has launched the auction of Heritage Bank’s assets. Learn how this impacts the financial sector and potential buyers.
The Nigeria Deposit Insurance Corporation (NDIC) has announced the initiation of a national auction for the sale of properties and physical assets belonging to the now-defunct Heritage Bank.
This action is part of the NDIC’s strategy to address liquidation dividends owed to uninsured depositors.
In a statement issued on Monday, Bashir Nuhu, the Director of Communications at the NDIC, indicated that the auction is in accordance with the corporation’s responsibilities as outlined in Section 62 (1)(d) of the NDIC Act, 2023.
The auction will occur at 36 designated locations, commencing on December 4, 2024. The Central Bank of Nigeria (CBN) revoked Heritage Bank’s license on June 3, 2024, due to its failure to enhance financial performance, which posed a risk to financial stability.
The CBN cited non-compliance with regulatory standards under Section 12 of the Banks and Other Financial Institutions Act as the main reason for this action.
As the designated liquidator, the NDIC will manage the sale of Heritage Bank’s assets to compensate uninsured depositors and fulfill the bank’s financial commitments.
The auction will be conducted through competitive bidding at the 36 specified locations, starting on December 4, 2024.
Interested buyers, including financial institutions, corporations, and private individuals, are encouraged to participate in this process, which aims to ensure transparency and maximize asset recovery for the benefit of eligible claimants.
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