NDIC to recover N400bn from liquidated banks

The Nigeria Deposit Insurance Corporation (NDIC) says it has commenced the recovery of N400 billion from debtors of liquidated banks in the country.

Speaking on the sidelines of the 2023 NDIC Workshop for Journalists on Wednesday in Owerri, the Managing Director, Mr. Bello Hassan, also revealed that the Corporation has commenced payment to over 40,000 depositors of the banks in liquidation.

Speaking further, he said: “One of the greatest challenges the NDIC is facing is debt recovery. A lot of customers of banks in liquidation that borrowed are not willing to repay those debts.

“Those debts or those loans that were granted were granted out of deposits of people that were collected by the banks. So, it is only when those debtors pay back that the NDIC would now be able to pay the depositors of those failed banks. With the revision of the 2023 NDIC Act, a lot of powers have been given to the Corporation in order to expedite this process. So, we are hoping to leverage that to ensure that we recover more, so that we can pay those depositors.

“The value of the debt that we are about to recover, if you take into account all the banks in liquidation, that is the Deposit Money Banks (DMBs), the microfinance banks, the primary mortgage institutions, is well beyond N400 billion, and that is what we are expecting to recover so that we can pay depositors of those banks in liquidation.”