The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, yesterday declared that the recent failure of Heritage Bank has further buttressed the intricate nature of bank liquidation, and the vital role of collaboration with its external solicitors.

Hassan pointed out that of the four core mandates enshrined in the Nigeria Deposit Insurance Act 2023, including deposit guarantee, bank supervision, resolution of failing financial institutions, and the orderly liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria (CBN), the latter remained a critical function in which the corporation required the support of external solicitors your support to efficiently discharge the mandate and maintain financial stability.

Speaking at the opening of the corporation’s annual sensitisation seminar for external solicitors with the theme, “Consolidating Collaborative Efforts in Mastering the Deposit Insurance Scheme and Bank Resolution” in Abuja, Hassan noted that liquidation by its nature is often intertwined with litigation.

Represented by NDIC Deputy Director, Legal Department, Hajia Ramotu Abdulahi, Hajia Ramotu Abdulahi, Hassan explained that the corporation, 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 said the recovery of these debts and the realisation of assets remained crucial to achieving our corporate objectives.

The NDIC boss said beyond payment of the insured sums to depositors from the corporation’s Deposit Insurance Funds (DIF), the NDIC as liquidator is also obligated to settle uninsured portion of deposits and all legitimate creditor claims from the realised assets of the insured institution in-liquidation.

He said, “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.

“The NDIC deeply values its stakeholders as essential partners in achieving its corporate objectives. We actively seek your continued collaboration and support in promoting financial system stability through a deeper understanding of the dynamics of the Deposit Insurance System in Nigeria.”

Hassan further pointed out that the consistent support received from its external solicitors was evident in the impressive attendance and active participation at previous seminars.

He said, “We are gratified to observe 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.”