Nigeria’s banking safety net regulator has launched an intensified recovery drive to unlock an estimated N1.5 trillion tied up in failed financial institutions, as part of efforts to boost depositor payouts and strengthen confidence in the financial system.
The Nigeria Deposit Insurance Corporation (NDIC) disclosed that the recoverable sum spans unresolved loans, insider credits, non-performing assets and other liabilities linked to nearly 150 liquidated institutions, including about 50 deposit money banks and more than 100 microfinance banks.
Brandspur Banking News Desk reports that the disclosure was made in Lagos by the Director of Asset Management at the Corporation, Patricia Okosun, during a sensitisation programme for debt recovery agents. She said the renewed push is backed by expanded enforcement powers provided under the NDIC Act 2023.
According to her, the new legal framework equips the Corporation with broader authority to pursue debtors and trace assets, compared to previous laws that limited recovery outcomes. She explained that recovery agents are being trained on advanced asset tracing, structured debt collection and the use of legal processes in complex cases involving litigation or uncooperative insiders.
The recovery programme covers failed deposit money banks, microfinance banks, primary mortgage banks and finance companies that have been in liquidation since 1994. NDIC data show that past efforts yielded N33.54 billion from deposit money bank debtors out of N1.37 trillion in identified risk assets, alongside smaller recoveries from other categories of failed institutions.
NDIC officials said the renewed asset recovery is aimed at accelerating liquidation dividends for uninsured depositors whose balances exceed insured limits, citing recent reimbursements made to customers of liquidated banks. The Corporation added that recent upgrades in depositor identification systems have enabled faster payments to affected customers.
The initiative aligns with NDIC’s broader mandate to safeguard depositors and preserve financial stability, particularly at a time of heightened economic pressure. The Corporation noted that recent adjustments to insurance coverage limits now protect about 99 per cent of bank accounts in Nigeria, reinforcing confidence in the banking system as recovery efforts continue.
