Our target is to liquidate failed banks without litigation — NDIC

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The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan said the target of the corporation is to continue the liquidation of failed banks without resorting to court cases and attendant litigation.

Hassan made the disclosure in Abuja on Thursday at a sensitisation seminar for external solicitors tagged, “Consolidating Collaborative Efforts in Mastering the Deposit Insurance Scheme and Bank Resolution.”

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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supervision, resolution of failing financial institutions, and the orderly liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria, the liquidation function is critical as the corporation requires the support of solicitors to efficiently discharge the mandate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 NDIC MD added that the recent failure of Heritage Bank, highlighted the intricate nature of bank liquidation and the vital role of collaboration with 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, which we intend to do judiciously,” he added.