By JohnMark Ukoko, Lagos.
The Nigerian Deposit Insurance Corporation (NDIC) has solicited the support of the Ministry of the Federal Capital Territory (FCT) in the realization of landed properties of banks in liquidation within the FCT to enable it pay depositors of affected closed banks.
The Chairman of the NDIC Board of Directors, Mrs Ronke Sokefun, made the appeal during a courtesy visit by the corporation’s board and management to the Honourable Minister of the FCT, Mallam Mohammed Musa Bello in Abuja.
According to Mrs Sokefun, the corporation had faced some bottlenecks in paying fully depositors’ funds trapped in the failed banks as a result of difficulty in realizing assets of banks in Liquidation due to poor documentation by the banks, revocation of title by authorities and litigation over the assets.
The NDIC Board Chairman announced that some of the assets were located within the FCT, adding that the support of the Ministry in realizing 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.
Speaking also, the NDIC Managing Director/Chief Executive Officer, Mr Bello Hassan, highlighted the role of his institution and the relationship between NDIC and Asset Management Corporation (AMCON) in the management of banks’ assets.
Hassan posited that NDIC as a liquidator focuses on the assets of closed banks, following revocation of their license by the Central Bank of Nigeria (CBN), while AMCON was involved with only non-performing loans (NPLS) of existing banks acquired by AMCON.
Responding, Minister of FCT, Mallam Mohammed Bello noted that problems relating to landed properties in the FCT were issues arising from the title of such properties.
He assured however that 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.
Bello recounted the continued long standing and cordial relationship that has been sustained over the years between the corporation and the ministry.
The Minister of the FCT commended the corporation for its active support in the development of 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.