The Nigeria Deposit Insurance Corporation (NDIC) has called for the collaboration of legal professionals in ensuring financial stability by supporting debt recovery and quick liquidation of failed banks in the county.
Managing director and chief executive of the NDIC, Bello Hassan speaking at a sensitisation seminar for external solicitors in Lagos on Thursday noted that the recovery of debts and the realisation of assets are crucial to achieving the NDIC’s corporate objective of financial stability.
He noted that the recent failure of Heritage Bank had highlighted the complex nature of bank liquidation and the vital role of collaboration with our external solicitors, adding that 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.
I am pleased to report that the Corporation has consistently fulfilled this responsibility, a success largely attributable to our collaborative partnerships, including the invaluable contributions of our external solicitors. 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 realisation.
“The 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.
“We are gratified to observe the positive outcomes of these engagements, including increased diligence in handling NDIC cases, more informed judicial decisions, encouraging feedback from both the bar and the bench, and a broader public awareness of deposit insurance practices in Nigeria,” he stated.
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