NDIC expresses frustration over prosecution of failed bank officials

Managing Director of the Nigeria Deposit Insurance Company, NDIC, Mr Bello Hassan, has expressed frustration with the difficulties encountered in the prosecution of Directors, Managers, and other bank officials that might have contributed to the collapse of their banks.

Mr Hassan who spoke at a sensitisation seminar organised for judges of national industrial courts and members of the investment and security tribunal in Port Harcourt said attachment of the assets of the corporation (NDIC) including garnishment of the corporation’s accounts and difficulties in the recovery of debts owed the failed banks as some of the challenges facing NDIC.

Hassan listed other challenges facing the company including the lack of specialised Winding-Up Rules for Failed Financial Institutions as provided for in Section 56(1) and (2) of the NDIC Act 2023, increase in cases by ex-staff of banks under liquidation on Labour law matters and issues relating to Stocks and Securities matters.     

He said despite the challenges,  the CBN and NDIC had recorded tremendous achievements in the intervention and resolution of problem banks through the various Resolution Options such as the Bridge Bank mechanism, and the Purchase and Assumption option.

He said the corporation over the years has successfully liquidated many DMBs, MFBs, and PMBs whose licences were revoked by the CBN, and their depositors as well as other claimants paid, with some of them fully settled from debts recovered and the assets realised. 

He pointed out that the company will soon approach the Federal High Court for the issuance of the Winding-Up Rules for failed deposit-taking institutions, under Section 56 of the NDIC Act 2023.