Failed banks: NDIC strengthens collaboration with judiciary to expedite prosecution

The Nigeria Deposit Insurance Corporation (NDIC) says it has strengthened its collaboration with the judiciary to expedite the prosecution of failed financial institutions.

The Managing Director of NDIC, Mr Bello Hassan, said this at the Corporation’s special day at the 19th Abuja International Trade Fair in Abuja on Monday.

Hassan was represented by Hajia Hauwa Gambo, the Deputy Director, Corporate Communications and Public Affairs Department of NDIC.

He said that the collaboration had resulted in the resolution of long standing cases and the declaration of 100 percent liquidation dividends to uninsured deposits of over 20 closed banks.

He said that alternative dispute resolution mechanisms had also been employed to enhance the Corporation’s liquidation activities and improve debt recovery.

Hassan encouraged depositors of any closed bank who were yet to receive their payment to come forward with their Bank Verification Number (BVN), proof of account ownership, identification and alternate account details.

He listed channels through which claims could be forwarded to the Corporation to include their website, email and social media platforms.

The managing director said that the corporation was committed to safeguarding deposits of citizens from the impact of bank failures.

“In an unprecedented achievement, the NDIC commenced payment to depositors within four days of Heritage bank’s closure.

“By leveraging depositors BVN as a unique identifier, the Corporation was able to identify alternate accounts and credit the insured amounts of up to five million naira directly.

“The innovative approach has enabled the payment of 84.98 percent of depositors with BVN linked accounts to date,” he said.

The President of the Abuja Chamber of Commerce and Industry, Chief Emeka Obegolu, said that the NDIC had been a critical player in safeguarding depositors, promoting confidence in the banking system, and ensuring the soundness of the financial sector.

Obegolu was represented by the Director-General of the chamber, Agaba-Idu Jideani.

He said that the corporation’s focus on protecting depositors and promoting a robust banking system was crucial for economic progress and seamless trade and investment.

The trade fair was themed ‘Mobility Options for transportation, trade finance and taxation.’