NDIC: Borrowers of Failed Banks Still Owe, Delays Hold Up Depositor Payments

The Nigeria Deposit Insurance Corporation (NDIC) says some borrowers from failed banks are hiding assets, delaying court cases and intimidating people involved in loan recovery. The corporation warns that debts remain payable even after a bank loses its licence, and delays can slow payments to depositors whose balances exceed insured limits. NDIC Director of Asset Management Ogungbemi Theophilus said the corporation recovers unpaid loans and sells assets belonging to financial institutions in liquidation. Depositors with balances above the applicable insurance limits depend on these recoveries for liquidation dividends. The NDIC says deposits are insured up to ₦5 million at deposit money banks and certain other institutions, and up to ₦2 million at microfinance banks, primary mortgage banks and payment service banks. The corporation held auctions on November 3 and 4, 2026, to sell assets belonging to Union Homes Savings and Loans, Heritage Bank and Resort Savings and Loans. Theophilus also warned auctioneers and other professionals against undervaluing properties, colluding with buyers or diverting proceeds, and said the NDIC is developing an asset management policy to strengthen its recovery work.

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