What Nigerians Should Know | NDIC Opens Sale of Properties from Defunct Heritage, Fortune & United Commercial Banks

The Nigeria Deposit Insurance Corporation (NDIC) has officially launched the auction of landed properties and related assets belonging to three defunct banks: Heritage Bank, Fortune Bank, and United Commercial Bank.

This strategic move marks a crucial step in the liquidation process aimed at settling uninsured depositor claims.

Why This Sale Matters

• As liquidator, the NDIC is legally empowered under Section 62(1)(d) of its Act to recover assets from failed financial institutions. The current asset disposal serves a dual purpose: reclaiming value and fulfilling pending deposits owed to uninsured customers, beyond the insured ₦5 million threshold per account holder.
• Heritage Bank’s closure in June 2024 triggered swift action: insured depositors were reimbursed within days using BVN information. Now, NDIC is extending the recovery drive to address uninsured deposits and creditor claims.

What’s Up for Auction

The sale includes:

• Landed properties, chattels, vehicles, and equipment across multiple locations nationwide
• Assets connected not only to Heritage Bank, but also to the now-defunct Fortune Bank and United Commercial Bank.

This initiative covers multiple states, with public auctions scheduled in major cities facilitated under strict procurement and competitive bidding guidelines.

Auction Process Details

• Interested parties can inspect assets before bidding begins
• A 10% bid security is required to participate
• Financial institutions purchasing properties may receive priority—ensuring continued banking services to the public. However, private and corporate bidders are welcome within the open auction framework.

Payouts & Financial Relief

Proceeds from the auction will prioritise:

1. Uninsured depositors—those with balances exceeding ₦5 million at the time of each bank’s liquidation
2. Bank creditors and shareholders, once depositor obligations are fully met.

In April 2025, NDIC disbursed the first ₦46.6 billion in liquidation dividends to Heritage Bank depositors, covering balances above insured limits.

Why It Matters

This auction is more than a bureaucratic procedure—it’s NDIC’s commitment to:

• Protecting public confidence in Nigeria’s financial system
• Restoring stability following bank failures
• Ensuring fairness, so depositors recover as much as possible and creditors are appropriately compensated.

The transparent process being followed helps reinforce trust and maintain stability in deposit-taking institutions.

What to Watch For

• Auction schedule: Watch for notices in NDIC offices across Abuja, Lagos, Kano, Enugu, Port Harcourt, and Bauchi
• Claim submissions: Depositors still owed should continue submitting BVN and account proofs via NDIC channels
• Future recoveries: More liquidation dividends are expected as further assets are converted to cash

By efficiently realising the value of these properties, the NDIC aims to bring closure to affected depositors and maintain the integrity of Nigeria’s banking sector.

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