The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation Bello Hassan, has emphasized the critical role of external solicitors in executing the Corporation’s bank liquidation mandate.
At the NDIC sensitization seminar for external solicitors, held in Abuja, Hassan emphasised the importance of a strong legal framework in dealing with financial institution failures.
In his keynote address, Hassan reiterated the NDIC’s core mandates under the Nigeria Deposit Insurance Act 2023, which include deposit guarantee, bank supervision, resolution of failing financial institutions, and the liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria.
He pointed out that in order to recover debts and realise assets, the liquidation procedure is inevitably linked to litigation and necessitates a high level of legal knowledge.
“The recent Heritage Bank failure brought to light the complexity of bank liquidation and the importance of working with our outside solicitors.
“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,” Hassan said.
He explained that beyond settling insured deposits, the NDIC, as a liquidator, must also ensure the payment of uninsured deposits and other legitimate creditor claims from the realized assets of failed institutions.
Hassan called for sustained commitment to helping the Corporation with asset realisation and debt recovery, acknowledging the difficulties that solicitors encounter in litigation.
“We hold our stakeholders in the highest regard as vital collaborators in accomplishing our business goals.
“The remarkable attendance and active participation at previous seminars demonstrates the consistent support we have received from our external solicitors.
‘We are gratified to observe the positive outcomes of these engagements, including more informed judicial decisions, increased diligence in handling NDIC cases, and a broader public awareness of deposit insurance practices in Nigeria,” he said
This year’s seminar, Hassan explained, aims to build upon past successes while integrating newly engaged solicitors following Heritage Bank’s failure.
The NDIC carefully selected the seminar’s topics to address current challenges and sought expert facilitators to provide practical solutions.
“The failure of Heritage Bank necessitated the engagement of new external solicitors, many of whom may not have benefited from prior seminars.
“This initiative reinforces the NDIC’s role in maintaining financial stability and aligns with our strategic objectives,” he said.
Encouraging active participation, Hassan welcomed recommendations from legal practitioners and emphasized the Corporation’s commitment to enhancing synergy between in-house counsel and external solicitors.
He said, “It is my great honour and privilege to formally declare this workshop open with this, ladies and gentlemen.”
The NDIC’s sensitization seminar is an essential forum for strengthening the stability of Nigeria’s financial system, promoting closer cooperation between the Corporation and legal experts, and guaranteeing a more efficient resolution of financial institution failures.
