NDIC strengthens debt recovery under NDIC Act 2023 to reclaim N1.5 trillion from failed banks, speeding payments to depositors and safeguarding financial stability

The Nigeria Deposit Insurance Corporation (NDIC) has intensified efforts to recover about N1.5 trillion owed to liquidated Deposit Money Banks (DMBs) and Microfinance Banks (MfBs), aiming to expedite payments to depositors affected by bank failures.

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The Corporation has strengthened its debt recovery agents in line with the NDIC Act 2023, enhancing enforcement powers and tools to accelerate asset recovery.

The initiative was highlighted at a sensitisation seminar organised by the NDIC’s Legal and Asset Management Departments, themed “Operationalising the Provisions of the NDIC Act 2023 for Effective Debt Recovery.”

Mr. Olufemi Kushimo, Director of the Legal Department, emphasised the centrality of debt recovery in reimbursing depositors, particularly for uninsured amounts.

“We pay the insured deposits from our insurance fund, but for the uninsured portion, recovery of debts owed to the failed banks is essential,” he said.

Many affected depositors include market women, small business owners, and Point-of-Sale operators whose savings exceed insured limits.

Kushimo noted that the NDIC Act 2023 expanded the Corporation’s enforcement powers, allowing it to pursue delinquent debtors, including insider-related accounts, and to identify criminal infractions for prosecution.

Mrs. Patricia Okosun, Director of the Asset Management Department, said the seminar aimed to familiarise recovery agents with the additional tools provided under the new Act.

“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,” she explained.

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Industry analysts highlight that successfully recovering the N1.5 trillion would ease the burden on depositors of failed banks, restore confidence in the financial system, and strengthen NDIC’s capacity to fulfil its mandate.