Exclusive: NDIC takes over Heritage Bank as CBN revokes licence of struggling lender

The Nigerian Deposit Insurance Corporation (NDIC) visited several Heritage Bank branches on Monday morning as talks of a distress resolution takeover gather steam. TechCabal identified at least twelve NDIC officials at the Victoria Island, Allen Avenue, Ilupeju, and Ladiopo branches of the bank.

One of the officials at a branch office had a memo that showed they were on “special assignment.” The official declined to comment on the memo or provide any details.

At least two persons with direct knowledge of the situation claimed the special assignment is connected to a distress resolution and a takeover of Heritage

Bank. The Banks and Other Financial Institutions Act (BOFIA) mandates the Central Bank to turn over significantly or critically under-capitalised banks to the deposit insurer for distress resolution.

A Heritage Bank spokesperson did not immediately respond to a request for comments. Three NDIC officials insisted any talks of a takeover was false and that today’s visit was part of a “routine exercise” going on at all banks.

A spokesperson for the Central Bank was unavailable for comments at the time of this report.