FTC Group petitions Tinubu, NDIC over 30-year bank liquidation surplus

Politics Spice Special Features Education Sex & Relationship Interview Columns Opinion Advertise with us FTC Group petitions Tinubu, NDIC over 30-year bank liquidation surplus Business & Economy October 30, 2026 12:41 am President Bola Tinubu. Photo: State House

Financial Trust Group has appealed to President Bola Tinubu to intervene in a 30-year dispute with the Nigeria Deposit Insurance Corporation over alleged unaccounted liquidation surpluses and dividends from two defunct banks, which it claims are due to the estate of its late founder, Dr Olufemi Ajayi.

In a statement, the Group called for the immediate release of comprehensive, independently verifiable and audited accounts of the assets realised from the liquidation of Financial Merchant Bank Limited in January 1994 and Republic Bank Limited in June 1995, alongside details of liabilities settled and any residual funds available for distribution, noting that the late Olufemi Ajayi has significant interests in the banks.

It urged President Tinubu to direct the NDIC to resolve the dispute in line with applicable laws, its statutory obligations and the transparency and accountability principles underpinning 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,” a statement from the company said.

The Group argued that three decades without what it considers a satisfactory account of the liquidation proceeds raises fundamental questions about regulatory accountability, the protection of shareholders’ rights and the treatment of indigenous entrepreneurs who contributed to Nigeria’s financial sector.

NDIC, in a publicly advertised statement in the Guardian newspaper on 2 October, 2023 and signed by Director, Communication and Public Affairs, Bashir A. Nuhu, announced that following impressive recoveries from debtors and realisation “of assets of banks in liquidation, the Nigeria Deposit Insurance Corporation (NDIC) has announced declaration of N16.18 billion liquidation dividends to depositors, creditors and shareholders of 20 banks in liquidation.”

The FTC Group said Financial Merchant Bank and Republic Bank were among the 20 listed banks that would receive an estimated N2bn from the NDIC’s recoveries and assets as depositors and shareholders.

“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,” it declared.

According to FTC Group, repeated efforts to secure a resolution have yielded no satisfactory outcome, leaving the Ajayi family and associated legacy entities without access to what the Group describes as their legitimate financial entitlements.

It maintained that applicable statutory provisions provide for the distribution of residual assets to shareholders and contributories after depositors and creditors have been satisfied. Citing NDIC annual reports, the Group asserted that the depositors and creditors of the two defunct banks had long been paid and questioned why the parties concerned had not yet been made available a comprehensive accounting of the liquidation proceeds and any remaining surplus.

The Group’s appeal also revisits the political and business circumstances surrounding the collapse of the two institutions during Nigeria’s military era. Ajayi, a prominent businessman, pro-democracy advocate and publisher of The Republic newspaper, openly supported the late Chief Moshood Abiola’s Hope ’93 presidential campaign.

FTC Group alleged that the military administrations of Generals Ibrahim Babangida and Sani Abacha repeatedly proscribed Ajayi’s publications and targeted his business interests, culminating in the revocation of the operating licences of Financial Merchant Bank Limited in January 1994 and Republic Bank Limited in June 1995.

The Group further claimed that the licences were revoked despite proposals to rescue or acquire the affected institutions, circumstances it believes warrant renewed scrutiny of the events leading to their closure and the subsequent administration of their assets.

Stay informed and ahead of the curve! Follow The Punch Newspaper on WhatsApp for real-time updates, breaking news, and exclusive content. Don’t miss a headline – join now!

Stay in the know—fast. Get instant alerts, breaking headlines, and exclusive stories with the Punch News App. Download now and never miss a beat.