The Senate has directed the Nigeria Deposit Insurance Corporation (NDIC) to maximize value from the remaining assets of the defunct Heritage Bank. This charge was issued by Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, during the NDIC retreat in Lagos, themed “Building Resilient Financial Systems through Effective Legislative Intervention.”
Senator Abiru commended the NDIC for its prompt response to depositors affected by the bank’s collapse. He stated, “I applaud the NDIC for its diligence and commitment to restoring hope to those affected. The process of settling depositors is never easy, particularly in cases involving significant financial distress, but your dedication to resolving this matter demonstrates the high standard of operational efficiency that we, as stakeholders, have come to expect from the NDIC.”
He further urged the Corporation to ensure that maximum value is realized from the bank’s remaining assets. “This will ultimately contribute to the settlement of outstanding depositors and other creditors. It is my hope that all the challenges associated with the settlement of the Bank’s stakeholders, including those related to liquidation dividends for corporate customers, are resolved speedily, effectively, and efficiently.”
In his welcome address, Bello Hassan, Managing Director/Chief Executive of NDIC, emphasized the purpose of the retreat: to deepen collaboration with the Senate regarding concerns about additional risks to the financial sector stemming from new products and services arising from advances in technology, globalization, and consolidation.
Hassan noted, “In recent years, the financial services sector has experienced significant transformation, largely driven by advances in technology, globalization, and consolidation. New services and products have emerged, while new players and financial technologies have been challenging traditional service providers through faster, cheaper, and more reliable services.”
While acknowledging the opportunities for growth these developments present, he cautioned about the additional risks and complexities the system may face. “To address this concern, stakeholders, particularly those charged with oversight functions, must collaborate more than ever before.”
He concluded by stressing the importance of legislative collaboration to redesign the legal framework that supports current financial advancements while promoting innovation and consumer protection.
