• Friday, May 24, 2024
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NDIC laments difficulty in performing statutory roles


The Nigeria Deposit Insurance Corporation (NDIC) on Wednesday lamented huge challenges it is currently facing in effectively discharging its role particularly as the liquidator and resolution to bank failure issues.

Umaru Ibrahim, managing director, NDIC, yesterday, raised concerns that in more than twenty years of making giant strides towards ensuring that Nigeria develops a formidable deposit insurance system, the corporation has been faced with excessive litigations which make it difficult to settle depositors and other creditors within a reasonable time frame.

He mentioned the difficultly of the corporation in recovering debts owed to the ailed banks due to the inability to trace the debtors, lack of collateral and other related challenges.

Ibrahim worried that there is also the challenge of execution of court judgements against the assets of the corporation as the liquidator of failed banks based on the role of NDIC as liquidator and that lack of proper understanding of the distinction in the legal status of NDIC as liquidator/deposit insurer by legal practitioners, the court and the public at large was another issue.

He said that having recognised that it cannot address most of these issues alone, the corporation is soliciting the help of the lawyers through sensitising especially those handling their cases on a better understanding of the issues involved.