The Nigeria Deposit Insurance Corporation (NDIC) has announced the commencement of efforts to recover N400 billion from debtors of liquidated banks in the country. Mr. Bello Hassan, the Managing Director of NDIC, provided this update on the recovery process at the 2023 NDIC Workshop for Journalists in Owerri.
According to Hassan, one of the significant challenges faced by NDIC is the recovery of debts, as many customers who borrowed from banks in liquidation are unwilling to repay these loans. He emphasized that these loans were granted using deposits collected by the banks, and it is essential for debtors to repay them so that NDIC can meet its obligation to depositors of failed banks.
Hassan highlighted that the recent revision of the 2023 NDIC Act has provided the Corporation with additional powers to expedite the debt recovery process. Leveraging these powers, NDIC aims to recover more funds, specifically targeting the recovery of over N400 billion. The recovered funds will then be used to compensate depositors of banks that have been liquidated, including Deposit Money Banks (DMBs), microfinance banks, and primary mortgage institutions.
This initiative is part of NDIC’s broader efforts to address financial challenges resulting from bank liquidations and ensure that depositors are adequately compensated. The successful recovery of these funds is crucial for maintaining the stability and integrity of the banking sector.
