The Nigeria Deposit Insurance Corporation (NDIC) has raised alarm over how debtors of failed banks are deliberately frustrating loan recovery efforts through asset concealment, legal delays and intimidation.
Speaking at a stakeholders’ seminar in Abuja, the Director of the Asset Management Department, Ogungbemi Theophilus, noted that recovering outstanding loans remains the hardest part of bank liquidation, as borrowers often mistakenly assume a revoked license frees them from their obligations.
The corporation noted that these stalling tactics severely devalue physical assets over time and directly delay payments to depositors awaiting their liquidation dividends, particularly those whose balances exceed insured limits.
To combat this, the NDIC noted that it conducted public auctions for assets from liquidated institutions like Union Homes Savings and Loans, Heritage Bank, and Resort Savings and Loans.
While enforcing a strict zero-tolerance policy against professional misconduct and insider dealing during recoveries, the corporation is currently developing a comprehensive Asset Management Policy and strengthening professional collaborations to accelerate claims settlements.
