NDIC Agents Address Debt Recovery Challenges in Abuja

During a seminar in Abuja, agents of the Nigeria Deposit Insurance Corporation (NDIC) discussed the difficulties in recovering debts from failed banks, attributing these challenges to secrecy, insider collusion, and weak loan documentation. The NDIC currently manages assets from 600 failed financial institutions, including commercial banks and microfinance banks.

The agents emphasized the need for improved due diligence and the verification of Bank Verification Numbers (BVN) for loan approvals to trace borrowers effectively. The NDIC Act 2023 aims to strengthen recovery efforts and enhance the corporation's capacity to recover debts.

Last month, the NDIC declared a second liquid dividend of N24.3 billion for depositors of the defunct Heritage Bank, whose balances exceeded the insured limit of N5 million at the time of closure. The NDIC has commenced the liquidation process for Aso Save Loan PLC and Union Home Save Loan PLC following the revocation of their operating licenses by the Central Bank of Nigeria on June 3, 2024.