The Managing Director /Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan has appealed to External Solicitors to continue to assist the Corporation with debt recovery and asset realisation.
Mr. Hassan made the appeal while speaking at a Senisitisation Seminar for External Solicitors with the theme: “Consolidating Collaborative Efforts in Mastering the Deposit Insurance Scheme and Bank Resolution,” held on Thursday in Abuja.
He said: “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supervision, resolution of failing financial institutions, and the orderly liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria – the latter is a critical function in which the Corporation requires your support to efficiently discharge the mandate and maintain the stability of the financial system.
“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.”
TheFact Daily reports that the event was organised to properly position the Solicitors to support the Corporation in promoting financial system stability through a deeper understanding of the dynamics of the Deposit Insurance System in Nigeria.
The event also reinforces the NDIC’s role in maintaining financial stability and aligns with its strategic objectives.
Represented by the Deputy Director, Legal Department of the Corporation, Hajia Ramotu, Abdullahi, the NDIC boss noted that the recent failure of Heritage Bank, highlighted the intricate nature of bank liquidation and the vital role of collaboration with the 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,” he added.
He explained that 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 portion of deposits and all legitimate creditor claims from the realised assets of the insured institution in-liquidation.
While noting that the Corporation has consistently fulfilled this responsibility, the MD said that the success was largely attributable to the Corporation’s collaborative partnerships, including the invaluable contributions of the external solicitors.
Mr. Hassan said, “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.
“The consistent support we have received from our external solicitors is evident in the impressive attendance and active participation at previous seminars,” he said.
Mr. Hassan highlighted the positive outcomes of these engagements, to include 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.
According to him, this year’s seminar builds upon these successes and aims to further strengthen the Corporation’s relationship with the external solicitors, ultimately serving the interests of bank depositors and the Nigerian financial system.
“Recognizing that the failure of Heritage Bank necessitated the engagement of new external solicitors, many of whom may not have benefited from prior seminars, we deemed it essential to convene this workshop,” he added.
He noted that topics were carefully selected for the seminar to directly address current challenges faced by the Corporation in fulfilling its mandate.
“We have secured the expertise of seasoned professionals and experienced advocates who are well-equipped to provide valuable insights and solutions. These topics are timely and designed to offer practical approaches to the issues confronting the Corporation,” Mr. Hassan added.
He assured the participants that the anticipated recommendations from the seminar would foster greater synergy between the Corporation’s in-house counsel and the external solicitors, enabling it to collectively overcome the challenges.
