{
  "id": 19165705,
  "title": "Failed bank debtors frustrating loan recovery — NDIC",
  "url": "https://urgent.news/2026/11/09/failed-bank-debtors-frustrating-loan-recovery-ndic-19165705",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-09T14:52:51.000Z",
  "source": {
    "name": "Punch",
    "slug": "punch",
    "url": "https://punchng.com/failed-bank-debtors-frustrating-loan-recovery-ndic/"
  },
  "original_language": "en",
  "account": "The Nigeria Deposit Insurance Corporation (NDIC) has expressed concern over some debtors of failed banks who are deliberately hindering the recovery of outstanding loans. This frustration is caused by asset concealment, legal delays, and intimidation tactics employed by these debtors. The NDIC's Asset Management Department Director, Ogungbemi Theophilus, raised these concerns during a seminar in Abuja. The challenges faced by the corporation in recovering assets include debtors' attempts to hide assets, delay legal proceedings, and intimidate authorities. Theophilus emphasized that recovering outstanding loans is a significant challenge in bank liquidation, especially when borrowers failed to repay their loans even before the banks lost their operating licenses. He explained that delays in recovering loans and disposing of physical assets could reduce their value, ultimately affecting the amount available for distribution to depositors. The NDIC ensures insurance coverage up to N5m per depositor per bank for deposit money banks, primary mortgage banks, and microfinance banks. For balances above the insured limits, recovery is solely dependent on liquidation dividends from the recovery of assets and loans. The NDIC is developing a comprehensive Asset Management Policy to improve asset identification, documentation, valuation, disposal procedures, and accountability in recoveries. They also plan to strengthen collaboration with auctioneers, valuers, and other professionals to expedite loan recoveries and settle depositors' claims.",
  "summary": "The NDIC says debtors of failed banks are deliberately frustrating loan recovery efforts through asset concealment, legal delays and intimidation. Read More: https://punchng.com/failed-bank-debtors-frustrating-loan-recovery-ndic/",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}