More banks set to close down as NDIC names target after heritage

• NDIC stated that plans to liquidate failed slope without turning to ineligible enactment oregon related litigation
• Its MD emphasized the complexity of slope liquidations and the value of moving with extracurricular attorneys
• He added that the caller unopen down of Heritage Bank underscored the complexity of slope liquidation, the NDIC MD continued

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Bello Hassan, the managing manager of the Nigeria Deposit Insurance Corporation (NDIC), stated that the organization's extremity is to proceed liquidating failed banks without the request for tribunal hearings and related litigation.

The NDIC MD said that the caller bankruptcy of Heritage Bank brought to airy the complexity of slope liquidation. Photo Credit: NDIC
Source: Getty Images

At a sensitization grooming for outer solicitors successful Abuja connected Thursday, Hassan revealed the information.

The lawsuit was tagged, “Consolidating Collaborative Efforts successful Mastering the Deposit Insurance Scheme and Bank Resolution.”

He said,

“Of the 4 halfway mandates enshrined successful the Nigeria Deposit Insurance Act 2023 deposit guarantee, slope supervision, solution of failing fiscal institutions, and the orderly liquidation of banks whose licenses person been revoked by the Central Bank of Nigeria, the liquidation relation is captious arsenic the corp requires the enactment of solicitors to efficiently discharge the mandate escaped of litigations and support the stableness of the fiscal system.”

The caller bankruptcy of Heritage Bank, the NDIC MD said, brought to airy the complexity of bank liquidation and the value of moving with extracurricular counsel.

“Liquidation, by its nature, is intertwined with litigation. The NDIC, successful fulfilling its responsibilities, engages successful ineligible proceedings some arsenic plaintiff and defendant, representing the interests of depositors and creditors portion besides pursuing indebtedness betterment from debtors of closed banks, which we mean to bash judiciously,” helium added.

Earlier, the Corporation reiterated its committedness to preserving nationalist fiscal stableness and protecting depositor funds.

When Hassan spoke connected Thursday, February 20, 2025, astatine the NDIC Special Day astatine the 46th Kaduna International Trade Fair, helium emphasized the value of safeguarding slope customers, particularly the astir vulnerable.

“For implicit 3 decades, the NDIC has played a captious relation successful protecting depositors and strengthening the fiscal system,” Hassan said.

The NDIC engages successful ineligible proceedings some arsenic plaintiff and defendant, representing the interests of depositors and creditors. Photo Credit: Contributor
Source: Getty Images

He explained that managing troubled banks, monitoring fiscal institutions, insuring deposits successful regulated banks, and ensuring that slope collapses are handled amicably are among the agency's main responsibilities.

He said,

“The proceeds from the ongoing income would beryllium applied towards settling depositors with balances supra the insured bounds of N5 million, with further payments to travel arsenic further recoveries are made,” helium said.

Hassan stated that NDIC was committed to ensuring a unchangeable fiscal situation that safeguards depositors and builds nationalist confidence.

According to him, this is to alteration businesses to thrive and lend to the nation’s economical development.

Some customers of Nigerian slope nevertheless commended the NDIC for its effort successful ensuring that customers of failed slope retrieve their fumd.

Mercy Abiodun said,

"We person seen what happened with Heritage slope and however the NDIC was capable to and are inactive intervening. I consciousness similar this benignant of enactment helps to fortify assurance successful the fiscal services sector."

NDIC speaks connected auctioning defunct bank's assets

Legit.ng reported that the Nigeria Deposit Insurance Corporation (NDIC) said that it has successfully and transparently auctioned the defunct Heritage Bank’s assets, including landed properties and chattels.

Its Managing Director, Bello Hassan, disclosed during the corporation’s peculiar time astatine the ongoing 46th Kaduna International Trade Fair, Kaduna.

He said the auction was successful enactment with its statutory mandate nether Section 62 (1)(d) of the NDIC Act, 2023.

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Source: Legit.ng