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This being the text of the keynote address delivered by Mr. Bello Hassan, OON, FCA, FCIB, Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC) on 27 February 2025, at the Bon Hotel Octagon, Jahi District, Abuja, on the occasion of the sensitisation seminar for external solicitors themed: “Consolidating Collaborative Efforts in Mastering the Deposit Insurance Scheme and Bank Resolution.”

Protocols

It is a great pleasure to address this distinguished gathering of legal professionals at our annual sensitisation seminar for external solicitors. Please allow me to extend my best wishes for a prosperous new year to you all.

I offer my sincere gratitude to the Nigerian Bar Association, our esteemed guests, and facilitators for dedicating their valuable time to this important seminar. Your presence, particularly given the distances many of you have travelled, underscores your commitment to the NDIC's mission of becoming a leading deposit insurer globally. This shared dedication is truly appreciated.

Of the four core mandates enshrined in the Nigeria Deposit Insurance Act 2023 – deposit guarantee, bank supervision, resolution of failing financial institutions, and the orderly liquidation of banks whose licenses have been revoked by the Central Bank of Nigeria – the latter is a critical function in which the Corporation requires your support to efficiently discharge the mandate and maintain the stability of the financial system.

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 realisation 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 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 realisation.

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. We are gratified to observe the positive outcomes of these engagements, including increased diligence in handling NDIC cases, more informed judicial decisions, encouraging feedback from both the bar and the bench, and a broader public awareness of deposit insurance practices in Nigeria.

This year's seminar builds upon these successes and aims to further strengthen our relationship with our external solicitors, ultimately serving the interests of bank depositors and the Nigerian financial system. Recognising that the failure of Heritage Bank necessitated the engagement of new external solicitors, many of whom may not have benefited from prior seminars, we deemed it essential to convene this workshop. This initiative reinforces the NDIC’s role in maintaining financial stability and aligns with our strategic objectives.

The carefully selected topics for this seminar directly address current challenges faced by the Corporation in fulfilling its mandate. We have secured the expertise of seasoned professionals and experienced advocates who are well-equipped to provide valuable insights and solutions. These topics are timely and designed to offer practical approaches to the issues confronting the Corporation. We encourage your active participation, welcome your recommendations, and anticipate that this seminar will foster greater synergy between our in-house counsel and our external solicitors, enabling us to collectively overcome these challenges.

On this note, ladies and gentlemen, it is my singular honour and privilege to officially declare this workshop open.

Thank you for your kind attention.