Failed banks: NDIC partners judiciary for speedy prosecution of officials

…Declares 100% liquidation dividends for uninsured depositors of over 20 failed banks

The Nigeria Deposit Insurance Corporation (NDIC) says it has strengthened collaboration with the judiciary to expedite the prosecution of failed financial institutions and officials.

Bello Hassan, managing director of NDIC, said this at the corporation’s special day at the 19th Abuja International Trade Fair on Monday in Abuja.

The managing director, represented by Hauwa Gambo, deputy director, corporate communications and public affairs department of NDIC, said that the collaboration had resulted in the resolution of long-standing cases and the declaration of 100 percent liquidation dividends to uninsured deposits of over 20 closed banks.

“The corporation has strengthened its collaboration with the judiciary to expedite the prosecution of failed institutions. This has resulted in the resolution of long-standing cases and the declaration of 100 percent liquidation dividends to uninsured depositors of over 20 closed banks. Alternative Dispute Resolution mechanisms have also been employed to enhance our liquidation activities and improve debt recovery,”

According to Hassan, the achievement underscores the NDIC’s commitment to ensuring that depositors are fairly compensated following the closure of financial institutions.

He explained that in addition to insured deposits, the NDIC has worked tirelessly to recover the assets of defunct banks and ensure that uninsured depositors are not left behind. He added that these depositors, whose balances exceeded the insured limits, will now receive their funds through the liquidation process.

He noted also that the use of Alternative Dispute Resolution (ADR) mechanisms has also been instrumental in enhancing the NDIC’s liquidation activities. By employing ADR methods, the Corporation has been able to accelerate debt recovery and resolve disputes more efficiently, further contributing to the timely compensation of affected depositors.

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Hassan therefore encouraged depositors of any closed bank who were yet to receive their payment to come forward with their Bank Verification Number (BVN), proof of account ownership, identification and alternate account details.

He listed channels through which claims could be forwarded to the Corporation including their website, email and social media platforms and noted that the corporation was committed to safeguarding deposits of citizens from the impact of bank failures.

“I encourage depositors of any closed bank, especially Heritage Bank, who are yet to receive their payments, to come forward with their BVN, proof of account ownership, identification, and alternative account details. Claims can be submitted through various channels, including our website, email, and social media platforms, as we remain committed to ensuring the safety of depositors’ funds,” he said

Emeka Obegolu, president of the Abuja Chamber of Commerce and Industry, said that the NDIC had been a critical player in safeguarding depositors, promoting confidence in the banking system, and ensuring the soundness of the financial sector.

Obegolu, represented by Agaba-Idu Jideani, the director-general of the chamber, said that the corporation’s focus on protecting depositors and promoting a robust banking system was crucial for economic progress and seamless trade and investment.

“I commend the NDIC for fostering trust in our financial ecosystem. The ability to move goods, services, and capital efficiently depends heavily on a stable and trustworthy financial system.

The NDIC’s focus on protecting depositors and promoting a robust banking system is crucial not only for economic progress but also for enabling seamless trade and investment, which strengthens the foundation of national development,”