Financial Trust Group has officially appealed to President Bola Ahmed Tinubu to intervene in its protracted 30-year dispute with the Nigeria Deposit Insurance Corporation (NDIC) regarding the asset accounting and liquidation surpluses of Financial Merchant Bank Limited and Republic Bank Limited. The appeal, announced over the weekend, also seeks the release of outstanding dividends owed to the estate of the group's late founder, Otunba Olufemi Ajayi.
Financial Merchant Bank was taken over by the Central Bank of Nigeria (CBN) in January 1994, while Republic Bank followed in June 1995, with both entities subsequently handed over to the NDIC for statutory liquidation. The dispute centers on transparency regarding asset realization, settled liabilities, and the distribution of residual funds to eligible shareholders and stakeholders.
What are the specific demands of the Group?
FT Group is requesting three critical measures to achieve closure: the immediate release of comprehensive and independently audited accounts detailing all assets realized and liabilities settled; a formal reconciliation process to determine any outstanding dividends due to the Ajayi estate; and the prompt disbursement of verified liquidation surpluses, which the Group estimates could total approximately ₦2 billion.
According to the corporate statement, the lack of a transparent accounting framework over the past three decades raises critical questions regarding regulatory accountability, shareholder rights, and the fair treatment of indigenous pioneers within the Nigerian financial sector. The parent organization, Financial Trust Nigeria Limited—founded in 1976 as the inaugural indigenous stockbroking firm on the Lagos Stock Exchange, now the Nigerian Exchange Group—notes that resolving this legacy issue coincides with preparations for its 50th anniversary in May 2026.
What is the historical context of the bank closures?
The conglomerate's petition highlights the politically charged business environment of Nigeria's military era during the 1990s. Otunba W.O.O. Ajayi was a prominent entrepreneur, pro-democracy campaigner, and publisher of The Republic newspaper who openly backed the presidential campaign of the late Chief Moshood Kashimawo Olawale Abiola in 1993.
The Group contends that military administrations repeatedly targeted Ajayi's publishing business, ultimately leading to the revocation of his banking licenses despite ongoing rescue and acquisition proposals at the time. While maintaining that it prefers a transparent, administrative resolution aligned with the Federal Government's Renewed Hope agenda, FT Group stated it remains prepared to explore available legal avenues if necessary.