NDIC charges external solicitors on debt recovery
The Nigeria Deposit Insurance Corporation has charged its external solicitors to be diligent in aiding the corporation to achieve its mandate of debt recovery and asset realisation.
This was disclosed by the Managing Director/Chief Executive, NDIC, Bello Hassan, on Thursday in Lagos at the 2024 Sensitisation Seminar for External Solicitors of NDIC under the theme, ‘Consolidating the Collaborative Efforts in Mastering Deposit Insurance Scheme & Bank Resolution.’
The NDIC is mandated to supervise banks to protect depositors’ funds, foster monetary stability, and ensure that failing and failed institutions are resolved in a timely and efficient manner.
Speaking at the event, Hassan, who was represented by the head of the legal department, Henry Fomah, 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. The recovery of these debts and the realisation of assets are crucial to achieving our corporate objectives.
“Beyond paying the insured sums to depositors from the Corporation’s deposit insurance funds, the NDIC is 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.”
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 realisation.”
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.
“This year’s seminar builds upon these successes and aims to further strengthen our relationship with our external solicitors, ultimately serving the interests of bank depositors and the Nigerian financial system. Recognising that the failure of Heritage Bank necessitated the engagement of new external solicitors, many of whom may not have benefitted from prior seminars, we deemed it essential to convene this workshop. This initiative reinforces the NDIC’s role in maintaining financial stability and aligns with our strategic objectives,” he said.
Fomah, who gave the welcome address, highlighted the papers to be presented at the seminar, navigating bank failure, debt recovery, to maintain systemic stability in Nigeria presented by Justice Ibrahim Buba (retired), Repercussions and Recovery Strategies for Debts Owed to Failed Banks by Dr Francis Agbu, SAN, and Legal and Practical Considerations in Winding Up of Failed Banks by Chris Umar, SAN.
