The Nigeria Deposit Insurance Corporation (NDIC) has stepped up efforts to recover about N1.5 trillion owed to liquidated Deposit Money Banks (DMBs) and Microfinance Banks (MfBs), as part of measures to accelerate payments to depositors affected by bank failures.
The Corporation said it has repositioned and strengthened its debt recovery agents in line with the provisions of the NDIC Act 2023, with the aim of enhancing enforcement and ensuring faster asset recovery.
The initiative was highlighted at a sensitisation seminar organised by the NDIC’s Legal and Asset Management Departments for debt recovery agents. The seminar, themed “Operationalising the Provisions of the NDIC Act 2023 for Effective Debt Recovery,” focused on equipping agents with updated tools and strategies under the revised legal framework.
Director of the Legal Department, Mr. Olufemi Kushimo, emphasised that effective debt recovery is central to depositor reimbursement and maintaining financial system stability.
He explained that while the Corporation settles insured deposits from its insurance fund, recovering outstanding debts owed to failed banks is essential for paying uninsured deposits and liquidation dividends.
“The work of NDIC is to provide financial assistance and guarantee deposits. Debt recovery is very key to depositor reimbursement. We pay the insured deposits from our insurance fund, but for the uninsured portion, recovery of debts owed to the failed banks is essential,” Kushimo stated.
According to him, many of the affected depositors include market women, small business owners and Point-of-Sale (POS) operators whose savings exceed the insured limits. He stressed that prompt debt recovery would enable the Corporation to pay liquidation dividends without undue delay.
Kushimo further noted that the NDIC Act 2023 has expanded the Corporation’s powers, granting stronger enforcement mechanisms to pursue delinquent debtors, including insider-related accounts, and to identify criminal infractions for prosecution by relevant authorities.
“The Act has enlarged our powers to recover debts owed by delinquent debtors, including insider-related accounts, and to identify criminal infractions for prosecution by relevant agencies. Early enforcement is critical because of the time value of money,” he added.
Also speaking, Director of the Asset Management Department, Mrs. Patricia Okosun, said the seminar was designed to sensitise recovery agents on the additional tools provided under the new Act.
“We now have an NDIC Act that has strengthened debt recovery. The essence of this seminar is to sensitise our recovery agents on the new provisions and tools available to them, in addition to what they have been doing,” Okosun said.
Industry analysts note that successful recovery of the outstanding N1.5 trillion could significantly ease the burden on depositors of failed banks, reinforce confidence in the financial system, and strengthen the NDIC’s capacity to fulfil its mandate.