NDIC Urges Legal Practitioners to Aid Debt Recovery

By Oluwakemi Kindness

The Nigeria Deposit Insurance Corporation (NDIC), has urged legal practitioners to support its efforts in recovering debts and realizing assets from failed banks to strengthen the country’s financial system.

Speaking at the 2024 Sensitisation Seminar for External Solicitors in Abuja, NDIC’s Managing Director, Hassan Bello, emphasized that debt recovery is crucial to the Corporation’s mandate.

Represented by the Head of Litigation, Ramatu Abdullahi, Bello, stressed the need for continuous collaboration with legal professionals to enhance financial system stability.

“I am pleased to report that the Corporation has consistently fulfilled this responsibility, a success largely attributable to our collaborative partnerships, including the invaluable contributions of our external solicitors,” Bello stated.

Acknowledging the challenges faced during litigation, he encouraged solicitors to remain diligent in assisting with debt recovery and asset realization.

He reiterated NDIC’s commitment to deepening its engagement with stakeholders and expanding knowledge of the Deposit Insurance System (DIS) across the country.

The seminar, themed “Consolidating the Collaborative Efforts in Mastering Deposit Insurance Scheme and Bank Resolution,” also addressed the recent failure of Heritage Bank.

Bello noted that the bank’s liquidation required the involvement of new external solicitors, making the workshop essential.

“Liquidation, by its nature, is intertwined with litigation. The NDIC engages in legal proceedings both as plaintiff and defendant, representing the interests of depositors and creditors while pursuing debt recovery from debtors of closed banks,” he explained.

In her opening remarks, the Head of General Legal Services, Hafsat Abdulaziz, highlighted the seminar’s goal of equipping solicitors with current regulations and developments related to NDIC’s mandate.

President of the Nigerian Bar Association (NBA), Afam Osigwe, lauded NDIC’s efforts, stating that the workshop would enhance legal practitioners’ understanding of debt recovery and asset management.

Represented by NBA Second Vice-President, Bolatomi Animashaun, Osigwe urged the NDIC to extend such training to solicitors in states nationwide.

Retired Federal High Court Judge, Justice Ibrahim Buba, while delivering a lecture titled “Navigating Bank Failure, Debt Recovery, and Systemic Stability.” advised NDIC solicitors to leverage advocacy and technology to improve debt as well as asset recovery processes.