By Seun Ibiyemi
The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that it is currently managing assets of nearly 600 failed banks and intensifying efforts to recover outstanding loans to enable payment of depositors’ uninsured funds.
The Director of the Asset Management Department of the corporation, Mrs. Patricia Okosun made the disclosure on Thursday in Abuja at a sensitisation seminar for debt recovery agents.
Okosun said the NDIC was overseeing more than 560 Microfinance Banks (MFBs) and about 32 Deposit Money Banks (DMBs) that had failed.
She explained that the seminar was organised to educate recovery agents on the enhanced powers conferred by the NDIC Act 2023 to strengthen debt recovery processes.
“Our focus is on the risk assets — the loans and advances granted when the banks were operational. These are the assets the debt recovery agents are mandated to pursue, and we are here to sensitise them on the powers available under the law,” she said.
She added that the corporation’s goal was to ensure that every recoverable loan was pursued, noting that recovered funds would be used to settle depositors, particularly the uninsured portions of their deposits.
Also speaking, Director of the Legal Department of NDIC, Mr. Olufemi Kushimo described the NDIC Act 2023 as a comprehensive recovery framework designed to enhance the corporation’s mandate of deposit guarantee and payment of depositors of failed banks.
According to him, the seminar themed “Operationalising the Provisions of NDIC Act 2023 for Effective Debt Recovery’’ was aimed at improving synergy between the corporation and its debt recovery agents, particularly those operating in Northern Nigeria.
“We see them as partners in fulfilling our deposit guarantee mandate. Continuous engagement and education will improve the system and enhance effective debt recovery,” Kushimo said.
Some debt recovery agents at the seminar called for policy reforms to ease recovery challenges.
Dr. Abdullahi Tahir advocated the inclusion of the Bank Verification Number (BVN) as a mandatory requirement for loan issuance, arguing that it would strengthen tracking of debtors who operate multiple companies to evade repayment.
According to him, linking loans to BVN would enable authorities to trace debtors across affiliated entities and apply necessary recovery measures.
Another agent, Mr. Augustine Ukauzo of Consecrated Law Firm, attributed recovery difficulties to lapses by officials of some defunct banks. He cited poor due diligence, inadequate collateralisation, weak documentation, and poor record-keeping as key obstacles.
“Some loans were granted based on familiarity or relationships without commensurate collateral or proper documentation, making recovery extremely difficult,” he said.
The NDIC reaffirmed its commitment to leveraging the provisions of the 2023 Act to strengthen debt recovery mechanisms and ensure depositors of failed banks receive their due payments.
