Nigeria: Debtors of Failed Banks Evading Loan Recovery - NDIC

What the report says

The Nigeria Deposit Insurance Corporation said some debtors of failed banks are avoiding repayment of outstanding loans, allegedly using hidden assets, court delays and intimidation to slow recovery efforts. The warning came from Ogungbemi Theophilus, director of the NDIC’s Asset Management Department, during a stakeholders’ seminar and public relations workshop in Abuja, according to Daily Trust, which was distributed by AllAfrica.

Theophilus said loan recovery remains one of the hardest parts of bank liquidation, especially when borrowers did not repay before the lender lost its licence. He argued that unpaid loans do not become easier to collect once a bank has been shut down, and he warned that slow recoveries and delays in selling assets can reduce their value and leave less money for depositors of liquidated institutions.

He also said the NDIC held public auctions on November 3 and 4, 2026, to dispose of physical assets linked to Union Homes Savings and Loans, Heritage Bank and Resort Savings and Loans. The sales, held in Lagos, Taraba and Adamawa states, were carried out through competitive sealed bidding. The corporation said it is also working on a broader asset management policy to improve identification, valuation, disposal and accountability.

The NDIC further cautioned against insider dealing, undervaluation, collusion and diversion of proceeds, saying it wants recovery costs kept below the value of assets recovered so depositors are not shortchanged.