Nume Ekeghe
The Nigeria Deposit Insurance Corporation (NDIC) has emphasised the need for greater collaboration with legal professionals to enhance the liquidation and debt recovery processes following bank failures.
Managing Director/Chief Executive Officer, Bello Hassan, stated this while speaking at the sensitisation seminar for external solicitors in Lagos.
He highlighted the role of external solicitors in ensuring the smooth resolution of failing financial institutions, particularly in the aftermath of Heritage Bank’s collapse.
Hassan, who was represented by the Head, Legal Department, NDIC, Henry Fomah, noted that bank liquidation is inherently tied to litigation, requiring extensive legal expertise to recover debts, resolve creditor claims, and maximise asset realisation.
He said: “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 is 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.”
