NDIC Decries Over-valuation of Failed Banks’ Assets
•Moves to tighten recovery, disposal procedures, eliminate delay in depositors’ repayment •Seeks transparency, stronger collaboration with valuers, auctioneers, estate surveyors James Emejo in Abuja The Nigeria Deposit Insurance Corporation (NDIC),
The Nigeria Deposit Insurance Corporation (NDIC) has highlighted several issues hindering the recovery of funds from failed banks, including inflated asset valuations, unethical disposal practices, and potential collusion among service providers. These obstacles are causing delays in the liquidation process and the settlement of claims for uninsured depositors.
The NDIC's Director of Asset Management Department, Mr. Ogungbemi Theophilus, emphasized the need for stronger collaboration with estate surveyors, valuers, auctioneers, and sales agents to address these operational weaknesses. Overvaluation of failed banks' properties makes it difficult to attract buyers and convert assets into cash, prolonging the recovery process.
While undervaluation is less common, collusion among professionals involved in asset disposal poses a concern. The NDIC is developing an Asset Management Policy to guide asset identification, valuation, disposal, and accountability. The goal is to accelerate recoveries and ensure that depositors with balances exceeding insurance limits receive their funds.
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