The Nigeria Deposit Insurance Corporation (NDIC) has stepped up efforts to recover outstanding loans and other risk assets of failed financial institutions, stressing that aggressive debt recovery is central to depositor protection and the stability of Nigeria’s financial system.
Speaking on Thursday at a sensitisation programme for debt recovery agents in Abuja with the theme, “Operationalising the provisions of the NDIC Act 2023 for effective debt recovery,” Director of the Asset Management Department, Patricia Okosun, said loan recovery remains the most critical source of funds used to reimburse depositors of failed banks.
“What we are concerned with here are the risk assets, the loans and advances that were given out when the banks were still in operation,” Okosun said.
“These loans are what we recover and deploy to pay depositors after the insured sums have been settled,” she added. She disclosed that NDIC currently manages assets from more than 600 failed financial institutions, spanning commercial banks, microfinance banks and other deposit-taking institutions.
