NDIC enlists solicitors for debt recovery post-Heritage Bank collapse

From Adanna Nnamani, Abuja

The Nigeria Deposit Insurance Corporation (NDIC) has engaged external solicitors as part of efforts to recover debts and resolve legal disputes, particularly following the failure of Heritage Bank.

Speaking at a Sensitization Seminar for External Solicitors in Abuja on Thursday, NDIC Managing Director Bello Hassan appealed to the professionals to support the corporation’s legal battles and asset recovery process.

Hassan, who was represented by the Deputy Director of the Legal Department, Mrs Ramatu Abdullahi, noted that debt recovery and asset realisation were essential to meeting the corporation’s objectives.

He emphasised the importance of collaboration between the NDIC and its legal partners in ensuring financial system stability.

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 for the interests of good partners.

“Beyond paying the insured sums to depositors from the corporation’s deposit insurance funds, the NDIC, as liquidator, is also obligated to settle uninsured portions of deposits and legitimate creditors’ claims from the realised assets of the insured institutions in liquidation. I am pleased to report that the corporation has consistently fulfilled this responsibility, a success that has contributed to our collaborative partnership, including the invaluable contributions of you, our external solicitors.

“While we are aware of 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. 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.”

The NDIC boss further noted that previous sensitization seminars had yielded positive outcomes, including improved handling of NDIC cases, informed judicial decisions, and increased public awareness of deposit insurance practices.

Hassan explained that the seminar’s carefully selected topics directly address the challenges faced by the NDIC, with seasoned professionals and experienced advocates providing practical solutions.

He called for active participation from the legal community, adding that their contributions would strengthen the corporation’s ability to navigate legal complexities and enhance financial system stability.