NDIC Moves to Recover N1.5trn from Failed Banks Using New Legal Powers
- IThe NDIC seeks to recover about N1.5 trillion in debts and assets linked to failed financial institutions
- The recovery drive targets nearly 150 banks currently in liquidation, including DMBs and microfinance banks
- The Corporation organised a seminar to train recovery agents on how to apply the new legal tools
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Nigeria Deposit Insurance Corporation (NDIC) has stepped up efforts to recover about N1.5 trillion in outstanding debts and assets linked to failed financial institutions, as it strengthens the capacity of debt recovery agents and deploys new enforcement provisions under the NDIC Act 2023.
Source: UGC
The Corporation said the move targets nearly 150 banks currently in liquidation and is aimed at speeding up recoveries to improve depositors’ reimbursements and strengthen confidence in the financial system.
As reported by Daily Trust, the development was disclosed at a sensitisation seminar organised by the NDIC’s Legal and Asset Management departments for debt recovery agents and other stakeholders.
Speaking at the event, the Director of Asset Management, Patricia Okosun, said the recently enacted NDIC Act 2023 provides broader enforcement powers and expanded recovery mechanisms. According to her, the updated law enhances asset tracing, debt collection processes, and legal action against debtors as well as insiders linked to failed institutions.
NDIC trains recovery agents
She explained that the seminar was organised to familiarise recovery agents with the new provisions and ensure they understand how to apply the tools more effectively.
“The purpose of this engagement is to highlight the stronger debt recovery provisions introduced by the new Act. Compared to the previous framework, the current law offers more comprehensive powers. We are guiding our agents on how to use these tools to improve results,” she said.
The NDIC noted that the N1.5 trillion recovery target consists of unpaid loans, insider-related credits, non-performing assets and other liabilities associated with collapsed deposit money banks (DMBs), microfinance banks (MFBs), primary mortgage institutions and finance companies.
NDIC targets microfinance, commercial banks
According to reports, at least 50 deposit money banks and more than 100 microfinance banks in liquidation are involved, with the Corporation reiterating its resolve to pursue recoveries.
Okosun clarified that while external recovery agents play an important role, not all recoveries will be handled solely by them. She added that their involvement is particularly crucial in complex cases involving litigation, dispersed assets or uncooperative debtors.
She expressed optimism that the strengthened legal framework would support the Corporation in reclaiming a substantial portion of the outstanding debts, although she acknowledged that full recovery may take time.
Source: Getty Images
NDIC pays depositors of Heritage Bank, Aso Savings, others
Legit.ng earlier reported that the NDIC said it reimbursed depositors of failed banks within 72 hours of their closure using linked BVNs to transfer funds quickly.
The commission’s Executive Director, Emily Osuji, urged customers to link their BVNs to their accounts to ensure smooth and timely payments.
She stressed that the NDIC is working with the CBN to strengthen depositor protection and maintain financial system stability.
Source: Legit.ng
