The Nigeria Deposit Insurance Corporation (NDIC) is managing the assets of almost 600 failed banks and is actively training debt recovery agents to enhance loan recovery, officials said.
Speaking on the initiative, NDIC spokesperson Okosun explained, “We want to let agents know the powers we have and transfer them tools to help recover the risk assets assigned to them.” She emphasized that recovered loans are crucial to ensuring depositors are paid.
Olufemi Kushimo, Director of the NDIC Legal Department, said the seminar aimed to educate debt recovery agents on the powers granted under the NDIC Act 2023. “The Act provides a comprehensive recovery framework to strengthen our debt recovery mechanisms, ensuring deposit guarantee and payment of uninsured portions of failed bank deposits,” he said.
Kushimo added that the program would foster better collaboration between NDIC and agents. “We see them as partners in deposit guarantee. As we work together, we intend to continue educating them to improve the system,” he said.
During the seminar, some agents suggested including the Bank Verification Number (BVN) as a requirement for loan issuance. NDIC agent Dr. Abdullahi Tahir explained that tying loans to BVNs could prevent debtors from evading repayment by spreading obligations across multiple companies. “If you are able to use the BVN to tie a debtor down, even if company ABC takes a loan, you can freeze company XYZ and pressure the debtor to pay,” he said.
Another agent, Mr. Augustine Ukauzo of Consecrated Law Firm, highlighted challenges arising from poor due diligence by defunct bank officials. “Some loans were granted based on partnerships, relationships, or familiarity, with little documentation or collateral, making recovery difficult,” he noted.
The NDIC initiative reflects ongoing efforts to strengthen the financial system by ensuring effective asset recovery and protecting depositors.