The Nigeria Deposit Insurance Corporation (NDIC) has appealed for the continued support of external solicitors’ of the Corporation in facilitating debt recovery and assets realisation of failed banks.
Mr Hassan Bello, the Managing Director of NDIC, made the appeal at the 2024 Sensitisation Seminar for External Solicitors of the NDIC in Abuja on Thursday.
Bello, represented by Hafsat Abdulaziz, Head, General Legal Services Unit, NDIC, said that recovery of debts and the realisation of assets were crucial to achieving the Corporation’s objectives.
He sought the continued collaboration and support of the solicitors in promoting financial systems stability through a deeper understanding of the Deposit Insurance System (DIS) dynamics in the country.
Bello said the consistent support the Corporation had received from its external solicitors was evident in the impressive attendance and active participation at previous seminars.
He said that the failure of Heritage Bank necessitated the engagement of new external solicitors hence, the essence of the workshop.
According to him, the recent failure of Heritage Bank, highlighted the intricate nature of bank liquidation and the vital role of collaboration with our external solicitors.
”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.
”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 realisation.
”The NDIC deeply values its stakeholders as essential partners in achieving its corporate objectives,” the managing director said.
Afam Osigwe, the President of the Nigerian Bar Association (NBA), commended said the workshop would help to boost the understanding of solicitors on issues of debt and assets recoveries of failed banks.
Osigwe, represented by Bolatumi Animashaun, the Second Vice-President of NBA, appealed to the NDIC to extend the seminar to solicitors in states to improve their understanding on deposit insurance systems.
In a lecture, a retired Federal High Court judge, Justice Ibrahim Buba, called on NDIC solicitors to deploy advocacy, leverage technology in handling debt and assets recovery cases of the Corporation.
The lecture is entitled: ‘Navigating Bank Failure, Debt Recovery and Systemic Stability’.
Buba advised NDIC solicitors to always conduct an in-depth research and due diligence on debtors of failed bank which they were seeking recovery from to know how to approach the matter.
”You are captains in this matter, navigate well.
”Know that debt recovery is your target and if you do not recover the debt, you have added to bank failure and instability of the economy,” he said.
Also, Dr Francis Agbu (SAN), in a lecture with title ‘Repercussion and Recovery Strategies for Debts Owed to Failed Banks’, said that clarity was required in filing proceedings on debt and assets recovery of failed banks.
The annual workshop was attended by law professionals from the bar and bench from Lagos and the Federal Capital Territory (FCT).
