NDIC Seeks External Solicitors’ Continued Support, Collaboration in Promoting Financial System Stability.
The Nigeria Deposit Insurance Corporation(NDIC) has sought the active support and collaboration of external solicitors in promoting financial system stability in the Country.
The Managing Director and Chief Executive officer of the NDIC, Mr Bello Hassan made the appeal in his keynote address at the Sensitization seminar for external Solicitors held Thursday in Abuja.
The theme of the seminar is:
“Consolidating Collaborative Efforts in Mastering the Deposit Insurance Scheme and Bank Resolution”
The NDIC boss who was represented at the occasion by the Deputy Director in the Legal Department of the Corporation, Hajia Ramotu Abdulahi, said 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”, he said.
He noted that the consistent support received from the Corporation’s external solicitors is evident in the impressive attendance and active participation at previous seminars.
“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”, the NDIC boss said.
He said one of the core mandates of the Corporation is the resolution of failing financial institutions, and the orderly liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria, adding that it’s a critical function which requires the support of external solicitors to efficiently discharge the mandate and maintain the stability of the financial system.
He posited that the recent failure of Heritage Bank, highlighted the intricate nature of bank liquidation and the vital role of collaboration with external solicitors.
He said Liquidation, by its nature, is intertwined with litigation, stressing that 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.
According to him, the recovery of these debts and the realization of assets are crucial to achieving the NDIC’s corporate objectives.
He noted that beyond paying 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.
“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”, he said.
Said he; “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 realization”.
He remarked that 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’.
He further said the failure of Heritage Bank necessitated the engagement of new external solicitors, many of whom may not have benefited from prior seminars, we deemed it essential to convene this workshop, adding that the initiative reinforces the NDIC’s role in maintaining financial stability and aligns with its strategic objectives.
He expressed gratitude to the Nigerian Bar Association, esteemed guests, and facilitators for dedicating their valuable time to this important seminar, adding that their presence, particularly given the distances many them have travelled, underscores their commitment to the NDIC’s mission of becoming a leading deposit insurer globally.
