NDIC laments debtors’ refusal to repay failed bank loans

The Nigeria Deposit Insurance Corporation (NDIC) has expressed concern regarding the refusal of certain debtors from failed banks to repay outstanding loans. According to Daily Trust, the corporation has accused these debtors of deliberately frustrating recovery efforts by using legal delays, intimidation, and the concealment of assets.

Ogungbemi Theophilus, the NDIC's Director of the Asset Management Department, addressed these challenges during a seminar and workshop in Abuja on Monday. Theophilus stated that some debtors incorrectly believe they are no longer obligated to fulfill their responsibilities once a bank's license is revoked. He noted that recovering loans becomes particularly difficult when borrowers fail to honor obligations before a financial institution loses its operating license.

Daily Trust reports that these practices undermine the recovery of funds belonging to depositors and cause delays in the payment of outstanding claims to customers of liquidated institutions. Punch and Punch Nigeria also noted the corporation's concern regarding debtors' refusal to repay loans and the use of asset concealment.

Brief written by urgent.news from Punch, Punch Nigeria, Daily Trust — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.