New Targets Identified as NDIC Speaks on Shutting Down More Banks After Heritage
- NDIC stated that plans to liquidate failed bank without turning to legal action or related litigation
- Its MD emphasized the complexity of bank liquidations and the importance of working with outside attorneys
- He added that the recent shut down of Heritage Bank underscored the complexity of bank liquidation, the NDIC MD continued
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Bello Hassan, the managing director of the Nigeria Deposit Insurance Corporation (NDIC), stated that the organization's goal is to continue liquidating failed banks without the need for court hearings and related litigation.
Source: Getty Images
At a sensitization training for external solicitors in Abuja on Thursday, Hassan revealed the information.
The event was tagged, “Consolidating Collaborative Efforts in Mastering the Deposit Insurance Scheme and Bank Resolution.”
He said,
“Of the four core mandates enshrined in the Nigeria Deposit Insurance Act 2023 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supervision, resolution of failing financial institutions, and the orderly liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria, the liquidation function is critical as the corporation requires the support of solicitors to efficiently discharge the mandate free of litigations and maintain the stability of the financial system.”
The recent bankruptcy of Heritage Bank, the NDIC MD said, brought to light the complexity of bank liquidation and the importance of working with outside counsel.
“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, which we intend to do judiciously,” he added.
Earlier, the Corporation reiterated its commitment to preserving national financial stability and protecting depositor funds.
When Hassan spoke on Thursday, February 20, 2025, at the NDIC Special Day at the 46th Kaduna International Trade Fair, he emphasized the significance of safeguarding bank customers, especially the most vulnerable.
“For over three decades, the NDIC has played a critical role in protecting depositors and strengthening the financial system,” Hassan said.
Source: Getty Images
He explained that managing troubled banks, monitoring financial institutions, insuring deposits in regulated banks, and ensuring that bank collapses are handled amicably are among the agency's main responsibilities.
He said,
“The proceeds from the ongoing sales would be applied towards settling depositors with balances above the insured limit of N5 million, with additional payments to follow as further recoveries are made,” he said.
Hassan stated that NDIC was committed to ensuring a stable financial environment that safeguards depositors and builds public confidence.
According to him, this is to enable businesses to thrive and contribute to the nation’s economic development.
Some customers of Nigerian bank however commended the NDIC for its effort in ensuring that customers of failed bank recover their fumd.
Mercy Abiodun said,
"We have seen what happened with Heritage bank and how the NDIC was able to and are still intervening. I feel like this kind of action helps to strengthen confidence in the financial services sector."
NDIC speaks on auctioning defunct bank's assets
Legit.ng reported that the Nigeria Deposit Insurance Corporation (NDIC) said that it has successfully and transparently auctioned the defunct Heritage Bank’s assets, including landed properties and chattels.
Its Managing Director, Bello Hassan, disclosed during the corporation’s special day at the ongoing 46th Kaduna International Trade Fair, Kaduna.
He said the auction was in line with its statutory mandate under Section 62 (1)(d) of the NDIC Act, 2023.
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Source: Legit.ng
