NDIC MD

The Nigeria Deposit Insurance Corporation (NDIC) has warned debtors of failed banks against concealing assets, frustrating legal proceedings and deploying intimidation tactics to evade repayment of outstanding loans. The corporation said such practices were undermining efforts to recover funds belonging to depositors and delaying the payment of outstanding claims to customers of liquidated financial institutions.

 

The Director of the Asset Management Department of NDIC, Ogungbemi Theophilus, raised the concerns on Monday at the Stakeholders’ Seminar and Public Relations Workshop in Abuja. Speaking on the challenges confronting the corporation in recovering assets of failed banks,

 

Theophilus said some borrowers wrongly believed that the revocation of a bank’s operating licence absolved them of their repayment obligations. He said the debtors often resorted to hiding assets, frustrating service of court processes, employing delay tactics and intimidating recovery officials.

 

Theophilus described loan recovery as one of the most difficult aspects of bank liquidation, noting that outstanding debts did not become easier to recover following the collapse of the affected financial institutions. He warned that delays in recovering loans and disposing of physical assets could significantly reduce their value, thereby affecting the funds available for distribution to depositors.

Sun