Abuja: The Nigeria Deposit Insurance Corporation (NDIC) has announced its management of assets from nearly 600 failed banks, with a focus on ensuring that depositors receive their uninsured deposits. Mrs. Patricia Okosun, Director of the Asset Management Department at the NDIC, provided this update during a sensitisation seminar for Debt Recovery Agents held in Abuja.
According to News Agency of Nigeria, Okosun detailed that the corporation is currently overseeing over 560 assets of MicroFinance Banks (MFBs) and approximately 32 Deposit Money Banks (DMBs). The seminar aimed to educate agents about the debt recovery powers granted by the NDIC Act of 2023. Okosun emphasized the importance of recovering every loan issued by the failed banks to ensure adequate depositor compensation.
The Director highlighted the NDIC’s strategic goal to recover risk assets, which include loans and advances extended during the banks’ operational periods. Okosun stated, “What we are here for is actually the risk assets, that is the loans and advances that were given out when the banks were in operation. That is actually what the debt recovery agents seek to recover, and that is what we are trying to sensitise them.”
Furthermore, Olufemi Kushimo, Director of the Legal Department at NDIC, noted that the seminar aimed to inform and educate agents on the comprehensive recovery tools provided by the NDIC Act 2023. He expressed confidence that these tools would enhance the corporation’s ability to guarantee deposits and pay uninsured portions of deposits from failed banks.
Kushimo added that the seminar was intended to foster better collaboration between the corporation and debt recovery agents. “This is supposed to provide better synergy with the debt recovery agent. We see them as partners in this deposit guarantee, and as we work along, we intend to educate them more and improve on the system,” he said.
Some agents at the seminar proposed that incorporating Bank Verification Numbers (BVN) as a requirement for loan issuance could aid in more effective debt recovery. Dr. Abdullahi Tahir, an NDIC agent, suggested that BVN inclusion would help track and pressure debtors to fulfill their obligations, especially when they operate multiple companies to evade responsibilities.
Mr. Augustine Ukauzo, another agent from Consecrated Law Firm, criticized some defunct bank officials for failing to conduct due diligence when granting loans, which complicates recovery efforts. He pointed out that loans were often issued based on personal relationships without adequate collateral or proper documentation, leading to challenges in tracing and recovering funds.
The seminar, which focused on “Operationalising the Provisions of NDIC Act 2023 for Effective Debt Recovery,” aimed to update agents on the latest developments and improvements in the NDIC Act to enhance debt recovery processes.