Nigeria Deposit Insurance Corporation (NDIC) is working on a winding-up rule that will allow it to take down failing institutions, according to Bello Hassan, managing director of NDIC.
Hassan stated this in Port Harcourt, Rivers State at a sensitization seminar organized for judges of national industrial courts and members of the investment and security tribunal.
He said that the NDIC 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.
The NDIC boss also said that the NDIC has successfully liquidated many banks in the past as instituted by the Central Bank of Nigeria (CBN).
Over the years, he said the corporation has successfully liquidated many Microfinance Bank (MFBs), Primary Mortgage Banks (PMBs) Deposit money Banks(DMBs).
He said the affected institutions were banks whose licenses were revoked by the CBN, and their depositors. He added that the company ensured that claimants were paid, with some of them fully settled from debts recovered and the assets realized.
It could be recalled that Legit.ng reported that the NDIC began paying all depositors of banks affected by the recent license revocation instituted by the Central Bank of Nigeria (CBN).
Hassan in an earlier report said that the Corporation has refunded over N1.2 billion to about 34,000 depositors of the liquidated 179 microfinance banks whose licenses the Central Bank of Nigeria (CBN) revoked.
Hassan however pointed out some of the challenges the company encounters in the course of duty. He also listed some of the challenges including difficulty in debt recovery and the attachment of the assets of the corporation (NDIC) including garnishment of the corporation’s accounts.
He blamed the difficulty in prosecuting directors, nanagers, and other bank officials for the fall of their banks.
According to Hassan, the lack of specialized winding-up riles for Failed Financial Institutions as provided for in Section 56(1) and (2) of the NDIC Act 2023 is another challenge that needs to be resolved.