Nigeria Deposit Insurance Corporation (NDIC) has called on its external solicitors to help recover debts and manage assets of failed banks, especially after the recent collapse of Heritage Bank.Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, made this appeal yesterday in Abuja during a sensitization seminar for external solicitors aimed at strengthening cooperation between the corporation and its legal partners.Hassan explained that due to Heritage Bank’s closure, NDIC has hired new external solicitors to help handle legal matters.
Mr. Hassan noted that external solicitors play a critical role in ensuring efficient debt recovery and asset realization, which are fundamental to stabilizing the Nigerian financial system.“I urge you external solicitors to continue your diligent efforts in assisting the Corporation with debt recovery and asset realization,” Mr. Hassan stated.
Acknowledging that some external solicitors may not have had the opportunity to participate in previous sensitization programmes, the NDIC deemed it necessary to organize the latest seminar to strengthen the Corporation’s relationship with its legal partners while reinforcing the strategic objectives of financial system stability.
This initiative reinforces the NDIC’s role in maintaining financial stability and aligns with our strategic objectives,” Hassan explained.
The Corporation noted that a deeper understanding of the Deposit Insurance System (DIS) in Nigeria among its legal representatives would enhance case management, promote informed judicial decisions, and improve public awareness of deposit insurance practices.Reflecting on the recent collapse of Heritage Bank, the NDIC Managing Director acknowledged the complexities of bank liquidation and admitted the necessity of collaboration with external solicitors to navigate legal and financial challenges.
The recent failure of Heritage Bank has highlighted the intricate nature of bank liquidation and the vital role of collaboration with our external solicitors,” Mr. Hassan remarked.According to him, the Corporation has already begun to observe positive outcomes from its engagements with external legal professionals. These include: increased diligence in handling NDIC cases; more informed judicial decisions; encouraging feedback from both the bar and the bench and greater public awareness of deposit insurance practices.The NDIC reiterated its commitment to engaging legal experts in ensuring that depositors’ interests are protected and that failed banks’ assets are efficiently recovered and managed. The Corporation stressed that a well-functioning deposit insurance system is crucial for the overall health of the Nigerian financial sector.
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 urged the solicitors.As NDIC continues to deal with the aftermath of Heritage Bank’s failure, Bello Hassan said the Corporation remains steadfast in its mission to safeguard depositors, enhance financial stability, and enforce best practices in bank liquidation and debt recovery.