NDIC Seeks Ministry’s Support On Failed Banks’ Assets

The Nigeria Deposit Insurance Corporation (NDIC) has solicited the support of the Ministry of the Federal Capital Territory (FCT) in the realisation of landed properties of banks in-liquidation within the FCT to enable it pay depositors of affected closed banks.

The Chairman of the NDIC, Mrs. Ronke Sokefun said this during a visit by the Corporation’s Board and Management to the Minister of the FCT, Mohammed Bello, in Abuja.

According to Mrs Sokefun, 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 NDIC chairman, who noted that some of the assets were located within the FCT, said the support of the Ministry in realising them would assist the corporation in the discharge of its mandate of deposit guarantee which ensures that depositors recover their savings in the event of bank failure.

NDIC’s Managing Director/CEO, Bello Hassan elaborated on the roles and relationship between the NDIC and the Asset Management Corporation of Nigeria (AMCON) in the management of banks’ assets.

He explained that the NDIC as a liquidator focuses on the assets of closed banks following revocation of their licence by the Central Bank of Nigeria (CBN) while AMCON was involved with only Non-Performing Loans (NPLs) of banks acquired by AMCON.

Responding, Minister of FCT, Mal. Mohammed Musa Bello observed that problems relating to landed properties in the FCT were usually not by the Ministry but from issues arising from the title of such properties. He however said 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.