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 such institutions.
The Chairman of NDIC Board of Directors, Mrs. Ronke Sokefun, made the appeal during a courtesy visit by the corporation’s board and management to the Minister of the FCT, Mallam Mohammed Musa Bello in Abuja.
Sokefun, 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.
She pointed out that some of the assets were located within the FCT and appealed for the support of the ministry in realising them, adding that this would assist the corporation in the effective discharge of its mandate of deposit guarantee.
This, according to her, ensures that depositors recover their savings in the event of bank failure.
Also speaking on the issue, NDIC’s Managing Director/Chief Executive, Mr. 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.
In a statement by Director, Communication and Public Affairs Department, NDIC, Bashir Nuhu, the MD 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 existing banks acquired by AMCON.
Bello, however, 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 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.
The minister noted the continued long standing and cordial relationship that has been sustained over the years between the corporation and the ministry.
He also commended the corporation for its active support of the development in the FCT in education through the donation of furniture and books as well as the Corporation’s interventions and financial assistance in support of the fight against the COVID-19 pandemic.