Financial Trust Group Accuses NDIC of Fund Withholding

Financial Trust Group has publicly accused the Nigeria Deposit Insurance Corporation (NDIC) of withholding liquidation surpluses and dividends that are due to the estate of its late founder, William Olufemi Olateju Ajayi, for more than 30 years. This situation arose after the liquidation of Financial Merchant Bank Limited and Republic Bank Limited in 1994 and 1995, respectively.

The group condemned the NDIC's prolonged refusal to account for and release these funds, demanding immediate settlement of all outstanding entitlements. Financial Trust Group stated that despite statutory provisions requiring the distribution of residual assets to shareholders and contributories after creditors and depositors have been fully paid, the NDIC has failed to provide a transparent, audited account of the assets realized from the liquidation.

The group traced the dispute back to the military era, alleging that the business interests of Ajayi were adversely affected by the administrations of Generals Ibrahim Babangida and Sani Abacha, which included the proscription of his publications and the revocation of the banks' operating licenses.