Fidelia Soriwei, Abuja
The Nigeria Deposit Insurance Corporation (NDIC) has accused some debtors of failed banks of deliberately obstructing loan recovery efforts through asset concealment, court delays and intimidation, warning that the practices are delaying payments to depositors of liquidated financial institutions.
The corporation said recovering outstanding loans was critical to settling uninsured depositors whose funds exceeded the insured limits, adding that delays in retrieving debts and disposing of properties could reduce the value of assets available for distribution.
The Director of the NDIC Asset Management Department, Ogungbemi Theophilus, raised the concerns on Monday at the corporation’s Stakeholders’ Seminar and Public Relations Workshop held at Exclusive Serene Hotels and Suites, Wuye, Abuja.
Describing the difficulties encountered during recovery operations, Theophilus said some borrowers wrongly assumed that the revocation of a bank’s operating licence relieved them of their repayment obligations.
“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 court. Sometimes, they try to intimidate. But we have to always do our job and professionally too,” he said.
He explained that outstanding loans remained difficult to recover, particularly where borrowers had failed to meet their obligations before the affected banks were closed.
“A loan that was not repaid when the bank was alive does not become easier to recover when the bank is dead,” he noted.
The NDIC director warned that prolonged recovery processes could also undermine the value of physical assets, as unoccupied buildings depreciate, equipment deteriorates and outstanding debts become increasingly difficult to collect.
“Every delay slows payment to depositors,” he warned.
The Asset Management Department is responsible for managing loans, properties and investments belonging to closed deposit money banks, primary mortgage banks and microfinance banks. Its responsibilities include recovering outstanding debts, disposing of assets and converting proceeds into funds for settling uninsured depositors.
Theophilus explained that the amount available to customers with deposits above the insured limits depended largely on the corporation’s ability to recover loans and realise the value of assets belonging to failed institutions.
Under the existing deposit insurance framework, customers of deposit money banks, non-interest banks and mobile money operators are covered up to ₦5m per depositor per bank. Depositors of microfinance banks, primary mortgage banks and payment service banks have coverage of up to ₦2m.
He said the current insurance limits fully protected approximately 99 per cent of depositors, while customers with balances exceeding the thresholds depended on liquidation dividends for the recovery of their remaining funds.
“For them, the insured payment is only the first instalment. The balance, the uninsured deposit, can only be paid as liquidation dividend, from the proceeds of the assets we are able to realise and the loans we are able to recover,” he explained.
The director also disclosed that the corporation conducted competitive public auctions on November 3 and 4, 2026, to dispose of physical assets belonging to three banks undergoing liquidation: Union Homes Savings and Loans, Heritage Bank and Resort Savings and Loans.
The auctions were held in Lagos, Taraba and Adamawa states under the coordination of the Asset Management Department and appointed auctioneers.
He cautioned that the corporation must ensure that the cost of recovering outstanding debts did not exceed the value of the assets being recovered.
“If it costs us N10m to recover N8m, the depositor has lost. We must be disciplined about costs, timelines and reporting,” he said.
Theophilus also warned professionals involved in asset recovery against insider dealing, deliberate undervaluation of properties, collusion with buyers and diversion of auction 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.
To improve accountability, he announced that the NDIC was developing a comprehensive Asset Management Policy covering asset identification, documentation, valuation, disposal procedures and recovery oversight.
He added that the corporation would strengthen its working relationships with auctioneers, valuers, sales agents, surveyors and other professionals to improve debt recovery and accelerate the settlement of outstanding depositor claims.
The Abuja workshop is part of three stakeholder engagements scheduled for Abuja, Enugu and Lagos to address operational challenges, improve professional collaboration and strengthen the recovery of assets belonging to failed financial institutions.
