NDIC tasks solicitors on debt recovery

The Nigeria Deposit Insurance Corporation (NDIC) has called on its external solicitors to intensify efforts in debt recovery and asset realisation to support the corporation’s mandate.

Bello Hassan, managing director/CEO of NDIC, made this appeal in Lagos during the 2024 sensitisation seminar for external solicitors of NDIC, themed ‘Consolidating the Collaborative Efforts in Mastering Deposit Insurance Scheme & Bank Resolution.’

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The NDIC is responsible for supervising banks to safeguard depositors’ funds, promote monetary stability, and ensure the swift and effective resolution of failing and failed financial institutions.

Hassan, who was represented by Henry Fomah, head of the legal department, added that NDIC had appointed new external solicitors following the failure of Heritage Bank in June 2024.

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.”

He disclosed that the recovery of these debts and the realisation of assets are crucial to achieving their corporate objectives.

“Beyond paying the insured sums to depositors from the Corporation’s deposit insurance funds, the NDIC as liquidator is also obligated to settle an uninsured portion of deposits and all legitimate creditor claims from the realised assets of the insured institution in-liquidation,” he said.

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He added that the consistent support NDIC has received from its external solicitors is evident and observed in 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.