In order to collect unpaid debts from failed bank borrowers, the Nigeria Deposit Insurance Corporation has promised to use the enhanced enforcement authority granted by the NDIC Act 2023.

During a sensitisation session for debt recovery agents in Lagos with the theme "Operationalising the Provisions of the NDIC Act 2023 for Effective Debt Recovery," Mr. Thompson Oludare, the NDIC's Managing Director and Chief Executive, disclosed this information.


The NDIC Act 2023 permits the corporation to take temporary custody of both movable and immovable property that belongs to an obligor who has been verified as the rightful owner.

Additionally, it gives the NDIC the authority to freeze money held in any insured bank by the obligors of bankrupt insured institutions.

Olufemi Kushimo, the Director of the Legal Department, spoke on behalf of Oludare, who issued a warning that the practice of routine loan defaults and protracted legal actions intended to postpone payments would no longer be accepted.

"We plan to make use of every clause, provision, and legal enforcement tool at our disposal. It is necessary to hold those accountable for bank failures. We are ready to use all applicable Act provisions to hold guilty parties accountable," he declared.

Longstanding challenges including frequent court adjournments and the strongly ingrained default culture that has traditionally postponed the liquidation of bank failures and mobile money companies are meant to be addressed by the new measures.

Restoring public trust in the financial sector requires efficient debt recovery, according to the Corporation.

Patricia Okosun, the director of the Asset Management Department, stressed that the Corporation is now more prepared than ever to seek recovery while acknowledging that it is difficult to establish a defined schedule for repayments due to legal complexity.

Sensitising our agents to the new laws that will enhance and support their job is the main goal of this engagement, according to Okosun.

"Earlier recovery is preferable because it allows depositors to be reimbursed more quickly."

The NDIC stressed that the 2023 Act serves as a deterrence in addition to fund recovery. The company wants to change the banking industry and make sure that individuals who cause bank failures bear the penalty rather than depositors by focusing on the "parties at fault."