Failed bank debtors frustrating loan recovery — NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has expressed concern over the deliberate actions of some debtors of failed banks that frustrate recovery efforts by concealing assets, delaying legal proceedings, and employing intimidation tactics. The NDIC's Director of the Asset Management Department, Ogungbemi Theophilus, warned during a stakeholder seminar that such practices hinder the recovery of funds belonging to depositors and delay the payment of claims to customers of liquidated financial institutions.

He emphasized that recovering outstanding loans and disposing of physical assets remains a significant challenge during bank liquidation, particularly when borrowers fail to fulfill their obligations before the institution's license is revoked.

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