FTC Group Petitions Tinubu, NDIC Over Alleged N2bn Bank Liquidation Surplus

Financial Trust Group has petitioned President Bola Tinubu and the Nigeria Deposit Insurance Corporation (NDIC) over an alleged N2bn liquidation surplus from two defunct banks.

The Group said the outstanding funds and dividends belong to the estate of its late founder, Dr Olufemi Ajayi, who held significant interests in both institutions.

It urged Tinubu to intervene and direct the NDIC to provide a detailed account of the assets realised from the liquidation of Financial Merchant Bank Limited and Republic Bank Limited.

The two banks lost their operating licences in January 1994 and June 1995, respectively.

In a statement, the Group demanded independently verified and audited records showing the banks’ assets, liabilities settled and any residual funds available for distribution.

It also called on the President to ensure that the NDIC resolves the dispute in line with its statutory obligations and the transparency principles of the Federal Government’s Renewed Hope agenda.

“Financial Trust Group calls upon the management of the NDIC, under the Renewed Hope agenda of the Federal Government, to immediately uphold transparency, adhere to statutory obligations, and disburse all accumulated liquidation surpluses and dividends owed to the Estate of Late Otunba W\.O.O. Ajayi without further delay,” the statement said.

The Group argued that the absence of a satisfactory account after three decades raises questions about regulatory accountability and shareholders’ rights.

It said the dispute also concerns the protection of indigenous entrepreneurs who contributed to Nigeria’s financial sector.

To support its demand, the Group cited an NDIC announcement published in The Guardian on October 2, 2023.

The notice, signed by the corporation’s Director of Communication and Public Affairs, Bashir A. Nuhu, declared N16.18bn in liquidation dividends for depositors, creditors and shareholders of 20 banks in liquidation.

According to the FTC Group, Financial Merchant Bank and Republic Bank featured among the 20 institutions listed for the distribution.

It estimated that the two banks would receive about N2bn from the NDIC’s recoveries and realised assets.

The Group said repeated efforts to secure a resolution had produced no satisfactory outcome, leaving the Ajayi family and associated legacy entities without access to what it described as their legitimate entitlements.

It maintained that relevant laws provide for the distribution of residual assets to shareholders and contributories after depositors and creditors have received their payments.

Citing NDIC annual reports, the Group claimed that depositors and creditors of the two banks had long received their entitlements.

It therefore questioned why the corporation had yet to provide a comprehensive account of the liquidation proceeds and any remaining surplus.

“Justice deferred for 30 years is accountability denied. The financial regulatory framework must honour the integrity of indigenous pioneers who built Nigeria’s financial architecture,” the Group said.

The petition also revisits the circumstances surrounding the collapse of the banks during Nigeria’s military era.

Ajayi was a businessman, pro-democracy advocate and publisher of The Republic newspaper. He openly supported the late Chief Moshood Abiola’s Hope ’93 presidential campaign.

The Group alleged that the military administrations of Generals Ibrahim Babangida and Sani Abacha repeatedly proscribed Ajayi’s publications and targeted his business interests.

It linked those events to the revocation of the banks’ operating licences in 1994 and 1995.

The Group further claimed that the authorities revoked the licences despite proposals to rescue or acquire the institutions.

It called for renewed scrutiny of the circumstances surrounding the closures and the subsequent management of the banks’ assets.

The NDIC’s response to the latest appeal was not included in the Group’s statement.