BusinessDay
Nigeria's leading finance and market intelligence news report.

NDIC seeks FCT Ministry’s support to realise closed banks’ assets

The Nigeria Deposit Insurance Corporation (NDIC) has solicited the support of the Ministry of the Federal Capital Territory (FCT) in the realisation (sale) of landed properties of banks in liquidation within the FCT to enable it to pay depositors of affected closed banks.

Ronke Sokefun, chairman of the NDIC Board of Directors, said this during a courtesy visit by the Corporation’s Board and Management to the Minister of the FCT, Mohammed Musa Bello, in Abuja.

According to Sokefun, the Corporation had faced some bottlenecks in the full payment of trapped depositors’ funds as a result of the difficulty in realising assets of banks in liquidation due to poor documentation by the banks, revocation of title by authorities and litigations over the assets.

In a statement signed by Bashir A. Nuhu, director, communication & public affairs department, the NDIC board chairman who noted that some of the assets were located within the FCT said the support of the ministry in realising them would assist the corporation in the effective discharge of its mandate of deposit guarantee which ensures that depositors recover their savings in the event of bank failure.

Speaking further, NDIC’s managing director/CEO, Bello Hassan, elaborated on the roles and relationship between the NDIC and the Asset Management Corporation of Nigeria (AMCON) in the management of banks assets.

Read Also: Stanbic IBTC shows Nigerian banks how to act big on renewable energy

He explained that the NDIC as a liquidator focuses on the assets of closed banks following revocation of their licence by the Central Bank of Nigeria (CBN) while AMCON was involved with only Non-Performing Loans (NPLs) of existing banks acquired by AMCON.

Responding, FCT Minister Bello observed that problems relating to landed properties in the FCT were usually not by the ministry but from issues arising from the title of such properties. He however said the Ministry was amenable to assisting the Corporation in resolving issues around its properties and those of banks in liquidation in the FCT within the ambit of the law.

Bello noted the continued long-standing and cordial relationship that has been sustained over the years between the Corporation and the Ministry. He commended the Corporation for its active support of the development in the FCT in education through the donation of furniture and books as well as the Corporation’s interventions and financial assistance in support of the fight against the COVID-19 Pandemic.

Whatsapp mobile

Get real time updates directly on you device, subscribe now.