NDIC Enhances Debt Recovery for Faster Depositor Payments

The Nigeria Deposit Insurance Corporation (NDIC) has initiated a renewed effort to strengthen its debt recovery processes to accelerate payments to depositors. This initiative addresses prolonged litigation and repeated adjournments that have entrenched a culture of loan defaults, which slow down the reimbursement of depositors.

A seminar was held in Lagos for debt recovery agents to enhance their understanding of the provisions of the NDIC Act 2023, which introduces measures to address structural bottlenecks and improve the pace of recovery. Mr. Thompson Oludar, Managing Director and Chief Executive of NDIC, emphasized the critical link between efficient recovery efforts and successful liquid dividend payments to depositors.

The NDIC aims to overhaul its act to grant broader enforcement authority and pursue outstanding obligations, including measures targeting recalcitrant debtors involved in criminal infractions. Ms. Patricia Okosun, Director of Asset Management, expressed optimism about recovery prospects despite external factors affecting litigation timelines, highlighting the importance of improving cash recovery to facilitate quicker reimbursements to depositors.