The Nigeria Deposit Insurance Corporation has pledged to deploy the strengthened enforcement powers conferred by the NDIC Act 2023 to recover outstanding debts owed by debtors of failed banks.

This was revealed by the NDIC’s Managing Director and Chief Executive, Mr Thompson Oludare, during a sensitisation seminar for Debt Recovery Agents in Lagos themed, “Operationalising the Provisions of the NDIC Act 2023 for Effective Debt Recovery.”

The NDIC Act 2023 authorises the corporation to assume interim custody of both movable and immovable assets belonging to an obligor confirmed as the legitimate owner.

It also empowers the NDIC to freeze funds held by obligors of failed insured institutions in any insured bank.

Oludare, represented by the Director of the Legal Department, Olufemi Kushimo, cautioned that the era of habitual loan defaults and prolonged litigation aimed at delaying repayment would no longer be tolerated.

“We intend to utilise every section, provision, and enforcement mechanism available under the law. Those responsible for bank failures must be held accountable. We are prepared to apply every relevant provision of the Act to bring culpable parties to justice,” he said.

The new measures are intended to overcome longstanding obstacles such as frequent court adjournments and the deeply rooted culture of default that has historically delayed the liquidation of failed banks and mobile money operators.

The Corporation stated that effective debt recovery is essential for restoring public confidence in the banking system.

The Director of the Asset Management Department, Patricia Okosun, acknowledged that legal complexities make it challenging to set a fixed timeline for repayments but emphasized that the Corporation is now better equipped than ever to pursue recovery.

“The essence of this engagement is to sensitise our agents to the new provisions that will support and improve their work,” Okosun said.

“The earlier the recovery, the better, as it enables quicker reimbursement of depositors.”

The NDIC emphasized that the 2023 Act goes beyond fund recovery, serving also as a deterrent. By targeting the “parties at fault,” the corporation aims to reform the banking sector and ensure that the consequences of bank failures fall on those responsible, rather than on depositors.