The Nigeria Deposit Insurance Corporation (NDIC) has begun a renewed push to strengthen debt recovery from failed banks and mobile money operators, citing prolonged litigation, repeated adjournments and an entrenched culture of loan default as key obstacles slowing depositor reimbursements.
At a sensitisation seminar for its debt recovery agents in Lagos, the Corporation said the enhanced provisions of the NDIC Act 2023 were specifically introduced to address these structural bottlenecks and improve the pace and effectiveness of recoveries tied to banks in liquidation.
Managing Director/Chief Executive of NDIC, Mr. Thompson Oludare, represented by the Director of Legal Services, Mr. Olufemi Oladepo Kushimo, said the success of depositor payouts is closely linked to the efficiency of recovery efforts.
"Your role is central to this objective. The success of liquidation dividend payments and depositor protection depends heavily on the efficiency and effectiveness of your recovery efforts. The enhanced provisions of the NDIC Act are designed to support you in this task, and this seminar aims to familiarise you with these expanded powers," he said.
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Oludare noted that several banks have remained in liquidation for extended periods, with recovery processes slowed by court cases that drag on for years, procedural delays and unwilling debtors.
According to him, these realities shaped the overhaul of the NDIC Act to grant the Corporation broader enforcement authority.
Under the revised law, the NDIC now has stronger legal backing to pursue outstanding obligations, including measures targeted at recalcitrant debtors and cases involving criminal infractions. Recovery agents are being guided on how to identify potential criminal breaches and escalate them to appropriate authorities for prosecution.
Beyond improving cash recoveries, Oludare signalled a wider regulatory intent to reinforce discipline within the banking system.
He said the Corporation is prepared to deploy "every section, provision and enforcement mechanism available under the law," not only to boost recoveries but also to deter misconduct and hold parties accountable for bank failures.
Those found culpable, he stressed, would be pursued in line with the law to sanitise the industry and restore confidence in the resolution framework.
The emphasis on enforcement reflects NDIC's dual mandate reimbursing depositors and ensuring financial system stability. Prompt payment of liquidation dividends, he added, plays a critical role in reinforcing public trust and encouraging savings within formal financial institutions.
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Also speaking, Director of Asset Management, Mrs. Patricia Okosun, said the revised Act has significantly expanded the recovery toolkit available to the Corporation and its agents.
"We are engaging debt recovery agents to familiarise them with the additional tools now available under the revised Act, beyond what they previously relied on. The essence of this engagement is to sensitise them to the new provisions that will support and improve their work. We are confident that these enhanced powers will enable us to recover more debts, and more efficiently, so that we can reimburse depositors," she said.
Okosun acknowledged that while the Corporation is optimistic about recovery prospects, external factors particularly litigation timelines limit its ability to set definitive payout schedules.
"Our objective is to recover as much as possible. Naturally, the earlier the recovery, the better, as it enables quicker reimbursement of depositors. However, given the realities of litigation and related processes, it is not possible to fix a definite timeline. What remains clear is that speed and efficiency are priorities," she added.
