NDIC Warns of Evasive Tactics by Failed Bank Debtors

The Nigeria Deposit Insurance Corporation (NDIC) has accused certain debtors of failed banks of intentionally concealing assets, employing delay tactics in court, and intimidating recovery officials to evade repayment of outstanding loans. Ogungbemi Theophilus, Director of the Asset Management Department, made these statements during a Stakeholders' Seminar and Public Relations Workshop in Wuye.

He clarified that many debtors mistakenly believe that the revocation of a bank's license absolves them of their repayment obligations. Theophilus highlighted the challenges of recovering loans from customers who defaulted before a bank's collapse, noting that slow recovery timelines negatively impact depositors awaiting compensation.

He mentioned that depositors are insured up to N5 million per depositor per bank, while customers of microfinance banks are covered up to N2 million. The NDIC recently conducted public auctions on November 3 and 4, 2026, to sell assets from Union Homes Savings and Loans, Heritage Bank, and Resort Savings and Loans across Lagos and Taraba.

Theophilus warned against misconduct in asset recovery, asserting the NDIC's zero tolerance for such actions.