NDIC strengthens debt recovery agents to recover N1.5 trillion from failed banks
The Nigeria Deposit Insurance Corporation (NDIC) has strengthened and repositioned its debt recovery agents in a renewed push to recover about N1.5 trillion owed by liquidated Deposit Money Banks (DMBs) and Microfinance Banks (MfBs).
The initiative aims to accelerate reimbursement to depositors, many of whom are market women, small business owners, and Point-of-Sale (POS) operators affected by the bank failures.
Speaking at a sensitisation seminar organised by the Legal and Asset Management Departments of NDIC, themed “Operationalising the Provisions of the NDIC Act 2023 for Effective Debt Recovery,” Director of the Legal Department, Mr. Olufemi Kushimo, said debt recovery is critical for depositor reimbursement and the stability of the financial system.
While NDIC pays insured deposits from its insurance fund, Kushimo explained that recovering outstanding debts is essential to settle uninsured deposits and liquidation dividends. “Many affected depositors are low-income earners whose funds exceed insured limits. Timely recovery will enable the Corporation to pay liquidation dividends promptly,” he said.
Kushimo noted that the NDIC Act 2023 has enhanced the Corporation’s powers, providing stronger enforcement mechanisms for faster and more efficient debt recovery. “The Act has enlarged our powers to recover debts owed by delinquent debtors, including insider-related accounts, and to identify criminal infractions for prosecution by relevant agencies. Early enforcement is critical because of the time value of money,” he added.
Also speaking, Director of the Asset Management Department, Mrs. Patricia Okosun, said the seminar’s objective was to equip recovery agents with additional tools introduced under the new Act. “We now have an NDIC Act that has strengthened debt recovery. 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 said.
