February 12, (THEWILL) — The Nigeria Deposit Insurance Corporation (NDIC) has moved to intensify efforts to recover about ₦1.5 trillion owed by debtors to failed banks and Microfinance institutions by empowering and repositioning its network of debt recovery agents.
The initiative, unveiled at a sensitisation seminar in Lagos, organised by the NDIC’s Legal and Asset Management departments, aims to fast-track debt recoveries to support the reimbursement of depositors, particularly low-income customers such as market traders, small business owners, and point-of-sale operators affected by banking failures.
NDIC officials highlighted that while insured deposits are paid from the Corporation’s fund, recovering outstanding debts is crucial for settling uninsured deposits and liquidation dividends. The recently enacted NDIC Act 2023 has expanded the Corporation’s legal powers, providing enhanced enforcement mechanisms to pursue delinquent debtors, including insider-related accounts, and to identify cases for prosecution by relevant agencies.
Mr Olufemi Kushimo, Director of NDIC’s Legal Department, said the move is designed to ensure more efficient, timely repayment to depositors, thereby reinforcing confidence in the financial system. Patricia Okosun, Director of Asset Management, added that the seminar was intended to equip recovery agents with the new legal tools and provisions under the Act to improve debt recovery outcomes.
The intensified effort shows NDIC’s commitment to strengthening the financial sector by reducing debts tied to failed financial institutions.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
