NDIC Partners FCT in Liquidation of Failed Banks’ Assets

Mrs Ronke Sokefun, chairperson, Nigerian Deposit Insurance Corporation (NDIC) Board of Directors is seeking the cooperation of the Federal Capital Territory (FCT) Administration in the liquidation of failed banks’ assets.

The NDIC board chair, made the disclosure during a visit to Mohammed Musa Bello, FCT minister in Abuja recently, a statement by the corporation has said.

In Nigeria, the NDIC has the mandate of liquidating assets of closed banks following revocation of their licence by the apex bank.

Within the FCT, the NDIC said it is faced with serious obstruction from various quarters including the Federal Capital Territory Administration.

But with the development, NDIC believes Bello’s support would enable it to pay depositors of affected closed banks.

The statement said “The Corporation had faced some bottlenecks in the full payment of trapped depositors’ funds as a result of difficulty in realising assets of banks in-liquidation due to poor documentation by the banks, revocation of title by authorities and litigations over the assets.

“The support of the Ministry in realising them would assist the Corporation in the effective discharge of its mandate of deposit guarantee which ensures that depositors recover their savings in the event of bank failure.”

While making the promise, the Minister said the issue connected to landed properties in the FCT were usually not by the Ministry.

He blamed it on “issues arising from the title of such properties.”

“The Ministry was amenable to assisting the Corporation in resolving issues around its properties and those of banks in-liquidation in the FCT within the ambit of the law,” the statement quoted Bello to have said.