Promise chioma Garba
The Nigeria Deposit Insurance Corporation (NDIC) has emphasized the need for stronger legal collaborations to enhance the processes of bank liquidation, debt recovery and other core mandates of the Corporation.
Bello Hassan, Managing Director/CEO of the NDIC, made the call on Thursday during a sensitization seminar for external solicitors in Lagos.
Re-presented at the occasion by Hajia Ramotu Abdulahi,, the Deputy Director in the Legal Department of the Corporation, Hassan highlighted the intricate nature of bank liquidation, which is deeply intertwined with litigation, requiring extensive legal expertise to recover debts and resolve creditor claims effectively.
“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supervision, resolution of failing financial institutions, and the orderly liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria – the latter is a critical function in which the Corporation requires your support to efficiently discharge the mandate and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.
“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 portion 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 realization.
“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.
“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.
“This year’s seminar builds upon these successes and aims to further strengthen our relationship with our 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.
“This initiative reinforces the NDIC’s role in maintaining financial stability and aligns with our strategic objectives.
“The carefully selected topics for this seminar 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.
“We encourage your active participation, welcome your recommendations, and anticipate that this seminar will foster greater synergy between our in-house counsel and our external solicitors, enabling us to collectively overcome these challenges” he stated.
The corporation seeks continued support from legal professionals to promote financial system stability and achieve its corporate objectives.
