NDIC Pursues N1.5 Trillion Debt Recovery from Failed Banks in Nigeria

The Nigeria Deposit Insurance Corporation (NDIC) is taking proactive steps to recover N1.5 trillion from failed banks in Nigeria by utilizing new legal powers granted under the NDIC Act 2023. Patricia Okosun, Director of Asset Management at NDIC, highlighted the corporation's efforts to target outstanding debts and assets associated with failed financial institutions, including nearly 150 banks currently in liquidation. The initiative involves deploying debt recovery agents and enforcing new provisions within the NDIC Act 2023 to expedite the recovery process, improve depositor reimbursement, and enhance confidence in the financial system. Okosun emphasized the importance of external recovery agents in handling complex cases involving litigation and uncooperative debtors.

Emily Osuji, Executive Director at NDIC, urged customers with accounts in failed banks to ensure a smooth and timely payment process, emphasizing NDIC's commitment to strengthening depositor protection and maintaining financial system stability. While full recovery may take time, NDIC aims to reclaim a substantial portion of the outstanding debt through robust legal frameworks and effective debt collection mechanisms.