NDIC urges lawyers to assist in recovering closed banks’ assets
The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Dr. Bello Hassan, has appealed to the corporation’s external solicitors to support efforts in recovering assets of closed banks.
Speaking at a sensitization seminar for external solicitors in Abuja, Dr. Hassan emphasized the critical role of lawyers in the liquidation process, noting that recovering these assets was essential for settling uninsured deposits, contractor claims, and liquidation dividends to investors.
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,” he said.
He further explained that the NDIC engages in legal proceedings both as plaintiff and defendant, representing depositors and creditors while 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 insured sums 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 realized assets of the insured institution in liquidation.”
Acknowledging the legal challenges involved, Dr. Hassan urged solicitors to continue their diligent efforts in assisting the corporation with debt recovery and asset realization.
He reiterated that among the four core mandates of the NDIC—deposit guarantee, bank supervision, resolution of failing financial institutions, and orderly liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria—the last was particularly dependent on legal support to maintain financial system stability.
“I am pleased to report that the Corporation has consistently fulfilled this responsibility, thanks largely to our collaborative partnerships, including the invaluable contributions of our external solicitors,” he added.
Dr. Hassan reaffirmed the NDIC’s commitment to working closely with stakeholders to enhance public awareness of deposit insurance practices in Nigeria and promote financial system stability.
He concluded by commending external solicitors for their continued support, noting that their engagement had led to improved diligence in handling NDIC cases, better-informed judicial decisions, and increased public awareness of deposit insurance in Nigeria.
