The Nigeria Deposit Insurance Corporation (NDIC) has emphasised the need for greater collaboration with legal professionals to enhance the liquidation and debt recovery processes following bank failures.

Bello Hassan, Managing Director/Chief Executive Officer, stated this while speaking at the sensitisation seminar for external solicitors in Lagos.

He highlighted the role of external solicitors in ensuring the smooth resolution of failing financial institutions, particularly in the aftermath of Heritage Bank’s collapse.

Hassan, who was represented by Henry Fomah, the Head, Legal Department, NDIC, noted that bank liquidation is inherently tied to litigation, requiring extensive legal expertise to recover debts, resolve creditor claims, and maximise asset realisation.

He said: “The recent failure of Heritage Bank, highlighted the intricate nature of bank liquidation and the vital role of collaboration with our 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. The recovery of these debts and the realization of assets are crucial to achieving our corporate objectives.

“Beyond paying the insured sums to depositors from the Corporation’s deposit insurance funds (DIF), the NDIC is as liquidator is also obligated to settle uninsured portion of deposits and all legitimate creditor claims from the realised assets of the insured institution in-liquidation.

“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. While we acknowledge the challenges some of you have encountered during litigation, we urge you to continue your diligent efforts in assisting the Corporation with debt recovery and asset realization.

“The NDIC deeply values its stakeholders as essential partners in achieving its corporate objectives. We actively seek your continued collaboration and support in promoting financial system stability through a deeper understanding of the dynamics of the Deposit Insurance System in Nigeria. The consistent support we have received from our external solicitors is evident in the impressive attendance and active participation at previous seminars.”

Financial services firm, Spring Sky Finance Company is set to launch its digital banking services in Nigeria this week.

A statement by the company noted that this innovative initiative aims to streamline loan processing and enhance access to credit for businesses and individuals, thereby mitigating economic challenges.

According to Dr. Helen Oritsejafor, the chairman of the company, “the institution is driven by innovation and a commitment to empowering individuals, businesses, and communities”.

Oritsejafor emphasised that the finance company is dedicated to providing innovative financial solutions, focusing on customer-centric services that cater for both businesses and individuals.

“Our mission is to empower individuals, businesses, and communities to soar to new heights through innovative financial solutions. We aim to bring banking closer to home with our digital banking architecture, providing financial services to macro and micro-economies,” Oritsejafor stated.

She added that the company’s goal is to become a leading provider of financial services for macro, micro, and small business clients.

“With a strong focus on financial inclusion, Spring Sky Finance seeks to provide tailored solutions to businesses and individuals, enabling them to achieve financial security, build wealth, and realise their dreams,” Oritsejafor said.

She concluded that the company’s digital banking solutions are a key part of its strategy to enhance accessibility and efficiency.

“At Spring Sky, we lead, and others follow. We are positioned to redefine the banking landscape by providing flexible, technology-driven financial solutions that cater for the evolving needs of businesses and individuals in both micro and macroeconomic sectors,” Oritsejafor concluded.

The African Development Bank Group and Standard Bank Group (SBG) on Monday signed a landmark financial agreement to enhance funding for small, medium, and micro enterprises (SMMEs) and expand trade across Africa.

The agreement includes a R3.6 billion investment in a social bond and a $200 million Risk Participation Agreement (RPA) for Standard Bank of South Africa Limited (SBSA). This initiative strengthens Standard Bank’s lending capacity, ensuring greater access to finance for SMMEs, a critical driver of economic growth and job creation in South Africa.

The social bond investment promotes inclusive economic development, particularly for SMMEs with a turnover below R300 million and loan sizes under R40 million. This financing will support up to 4,000 businesses, helping them scale operations, create jobs, and contribute to economic resilience.

Kenny Fihla, Deputy Chief Executive Officer of Standard Bank Group and Chief Executive Officer of SBSA, welcomed the investment, stating: “This landmark partnership strengthens our ability to support SMMEs, the backbone of South Africa’s economy. With approximately 3.2 million SMMEs accounting for 60% of jobs, ensuring access to finance is crucial. This initiative aligns with our Sustainable Finance Framework and our commitment to financial inclusion.”

In addition to the social bond, the $200 million RPA enhances trade finance across Africa, focusing on Low-Income Countries and Transition States. This agreement enables local banks to increase lending by sharing risk, bridging the trade finance gap, and promoting intra-African trade.

Leila Mokaddem, Director General for Southern Africa at the African Development Bank, highlighted the broader impact: “This collaboration marks a significant milestone in our long-standing partnership and is a testament to our shared commitment to supporting SMMEs’ growth and enhancing trade finance across Africa.

“Expanding financial inclusion and trade opportunities empowers businesses to drive economic transformation and regional integration. The Standard Bank Group remains a strategic partner in our shared vision for economic development on the continent.”

This initiative aligns with the African Development Bank’s Ten-Year Strategy (2024–2033), which prioritises industrialisation, regional integration, and improving the quality of life in Africa. It also supports Standard Bank’s Sustainable Finance Framework, reinforcing both institutions’ commitment to fostering green and inclusive growth.

“We are proud of this transaction, demonstrating our shared commitment to sustainable financing. By supporting businesses, we create long-term economic opportunities and financial resilience,” stated Ahmed Attout, Director of the Financial Sector Development Department at the African Development Bank.

Kenny Fihla reaffirmed the significance of the collaboration: “By providing much-needed capital, we are helping enterprises overcome challenges and thrive. This partnership illustrates the power of collaboration in driving meaningful economic and social change in Africa.”