NDIC Engages Exterior Solicitors to Increase Debt Restoration Efforts
The Nigeria Deposit Insurance coverage Company (NDIC) has tasked its exterior solicitors to accentuate their efforts in supporting the company’s debt restoration and asset realization initiatives.
This was disclosed by the Managing Director/Chief Govt, NDIC, Bello Hassan, on Thursday in Lagos on the 2024 Sensitisation Seminar for Exterior Solicitors of NDIC beneath the theme, ‘Consolidating the Collaborative Efforts in Mastering Deposit Insurance coverage Scheme & Financial institution Decision.’
The NDIC is remitted to oversee banks to guard depositors’ funds, foster financial stability, and be sure that failing and failed establishments are resolved in a well timed and environment friendly method.
Talking on the occasion, Hassan, who was represented by the pinnacle of the authorized division, Henry Fomah, added that NDIC had appointed new exterior solicitors following the failure of Heritage Financial institution in June 2024.
He stated, “The latest failure of Heritage Financial institution, highlighted the intricate nature of financial institution liquidation and the very important position of collaboration with our exterior solicitors. Liquidation, by its nature, is intertwined with litigation.
The NDIC, in fulfilling its obligations, engages in authorized proceedings each as plaintiff and defendant, representing the pursuits of depositors and collectors whereas additionally pursuing debt restoration from debtors of closed banks. The restoration of those money owed and the realisation of belongings are essential to reaching our company targets.
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“Past paying the insured sums to depositors from the Company’s deposit insurance coverage funds, the NDIC is as liquidator can also be obligated to settle an uninsured portion of deposits and all authentic creditor claims from the realised belongings of the insured establishment in-liquidation.”
I’m happy to report that the Company has constantly fulfilled this duty, successful largely attributable to our collaborative partnerships, together with the invaluable contributions of our exterior solicitors. Whereas we acknowledge the challenges a few of you’ve got encountered throughout litigation, we urge you to proceed your diligent efforts in helping the Company with debt restoration and asset realisation.”
He added that the constant help NDIC has acquired from its exterior solicitors is clear and noticed in “the optimistic outcomes of those engagements, together with elevated diligence in dealing with NDIC circumstances, extra knowledgeable judicial choices, encouraging suggestions from each the bar and the bench, and a broader public consciousness of deposit insurance coverage practices in Nigeria.
“This 12 months’s seminar builds upon these successes and goals to additional strengthen our relationship with our exterior solicitors, finally serving the pursuits of financial institution depositors and the Nigerian monetary system. Recognising that the failure of Heritage Financial institution necessitated the engagement of latest exterior solicitors, a lot of whom might not have benefitted from prior seminars, we deemed it important to convene this workshop. This initiative reinforces the NDIC’s position in sustaining monetary stability and aligns with our strategic targets,” he stated.
Fomah, who gave the welcome tackle, highlighted the papers to be introduced on the seminar, navigating financial institution failure, debt restoration, to take care of systemic stability in Nigeria introduced by Justice Ibrahim Buba (retired), Repercussions and Restoration Methods for Money owed Owed to Failed Banks by Dr Francis Agbu, SAN, and Authorized and Sensible Concerns in Winding Up of Failed Banks by Chris Umar, SAN.