By Emma Ujah,  Abuja Bureau Chief

The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Dr. Bello Hassan, has challenged the organisation’s external solicitors to be more effective in recovering assets of closed banks.

Speaking at the sensitization seminar for the external solicitors, in Abuja, yesterday, Hassan noted that the liquidation of closed banks was complex and required the services of the lawyers to recover the assets of the affected banks in order to pay uninsured deposits, genuine claims of contractors and liquidation dividend to investors.

He stated: “The recent failure of Heritage Bank, highlighted the intricate nature of bank liquidation and the vital role of collaboration with our external solicitors. Liquidation, by its nature, is intertwined with litigation.  

“The NDIC, in fulfilling its responsibilities, engages in legal proceedings both as plaintiff and defendant, representing the interests of depositors and creditors while also pursuing debt recovery from debtors of closed banks.

“The recovery of these debts and the realization of assets are crucial to achieving our corporate objectives.  

“Beyond paying the insured sums to depositors from the Corporation’s deposit insurance funds (DIF), the NDIC as liquidator is also obligated to settle uninsured portions of deposits and all legitimate creditor claims from the realised assets of the insured institution in-liquidation.  

“While we acknowledge the challenges some of you have encountered during litigation, we urge you to continue your diligent efforts in assisting the Corporation with debt recovery and asset realization.”  

Hassan added that of the four core mandates enshrined in the Nigeria Deposit Insurance Act 2023- deposit guarantee, bank supervision, resolution of failing financial institutions, and the orderly liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria- the latter was a critical function in which the Corporation required lawyers’ support to efficiently discharge the mandate and maintain the stability of the financial system. 

“NDIC deeply values its stakeholders as essential partners in achieving its corporate objectives. We actively seek your continued collaboration and support in promoting financial system stability through a deeper understanding of the dynamics of the Deposit Insurance System in Nigeria,” he added.