The Nigeria Deposit Insurance Corporation (NDIC) has raised issues over the refusal of some debtors of failed banks to repay excellent loans, accusing them of intentionally irritating recovery efforts by asset concealment, authorized delays and intimidation.
NDIC famous that such practices undermine efforts to recuperate funds belonging to depositors and delay the fee of excellent claims to clients of liquidated monetary establishments.
The Director of the Asset Management Department of the NDIC, Ogungbemi Theophilus, raised the issues on Monday throughout the Stakeholders’ Seminar and Public Relations Workshop in Abuja.
Speaking on the challenges confronting the company in recovering property of failed banks, Theophilus stated, “Some debtors of failed banks believe that because a bank’s licence is revoked, he is not obliged to fulfil his responsibilities anymore. They hide assets. They frustrate service, employ delay tactics in courts. Sometimes, they try to intimidate. But we have to always do our job professionally too.”
He defined that recovering excellent loans remained one of essentially the most troublesome points of financial institution liquidation, significantly when debtors failed to honour their obligations earlier than the affected establishments misplaced their working licences.
“A loan that was not repaid when the bank was alive does not become easier to recover when the bank is dead,” he famous.
The director famous that delays in recovering loans and disposing of bodily property may considerably scale back their worth, in the end affecting the quantity out there for distribution to depositors.
Theophilus disclosed that the company performed public auctions by aggressive sealed bidding on November 3 and 4, 2026, to dispose of bodily property belonging to 3 banks in liquidation.
He recognized the establishments as Union Homes Savings and Loans, Heritage Bank, and Resort Savings and Loans, including that the auctions passed off in Lagos, Taraba and Adamawa states.
He stated the workouts have been coordinated by the Asset Management Department and executed by appointed auctioneers.
The director additionally cautioned towards extreme recovery prices, stressing that bills incurred in recovering money owed should not outweigh the worth of recovered property
“If it costs us N10m to recover N8m, the depositor has lost. We must be disciplined about costs, timelines and reporting,” he stated.
He additional warned professionals engaged in asset recovery towards insider dealing, deliberate undervaluation, collusion with consumers and diversion of proceeds.
“The Corporation has zero tolerance for insider dealing, under-valuation, collusion with buyers, diversion of proceeds, or any conduct that short-changes depositors,” he declared.
Theophilus introduced that the NDIC was creating a complete Asset Management Policy to strengthen asset identification, documentation, valuation, disposal procedures and accountability in recoveries.
He stated the company would additionally deepen collaboration with auctioneers, valuers, gross sales brokers, surveyors and different professionals to enhance loan recoveries and speed up the settlement of depositors’ claims.
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