{
  "id": 19262644,
  "title": "Debtors of failed banks evading loan recovery — NDIC",
  "url": "https://urgent.news/2026/11/10/debtors-of-failed-banks-evading-loan-recovery-ndic",
  "topic": "world",
  "section": "World",
  "published": "2026-11-10T00:39:03.000Z",
  "source": {
    "name": "Daily Trust",
    "slug": "daily-trust",
    "url": "https://dailytrust.com/debtors-of-failed-banks-evading-loan-recovery-ndic/"
  },
  "original_language": "en",
  "account": "The Nigeria Deposit Insurance Corporation (NDIC) has expressed worry over some debtors of failed banks evading the repayment of their outstanding loans. These debtors are accused of deliberately hampering recovery efforts through methods like hiding assets, delaying legal proceedings, and using intimidation. The NDIC's Asset Management Department Director, Ogungbemi Theophilus, raised these concerns during a seminar in Abuja. He explained that some debtors believe once a bank's license is revoked, they are no longer required to meet their obligations. This leads to hiding assets, frustrating services, employing delaying tactics in courts, and even attempting to intimidate. The director emphasized that recovering outstanding loans is one of the most challenging aspects of liquidating banks, especially when borrowers fail to fulfill their commitments before the bank's operations cease. He noted that delays in recovering loans and selling physical assets can significantly reduce their value, which impacts the funds available to depositors. The NDIC conducted public auctions for the physical assets of three failed banks on November 3 and 4, 2026, in Lagos, Taraba, and Adamawa states. These auctions were managed by the Asset Management Department and carried out by appointed auctioneers. The director cautioned against high recovery costs, stating that expenses must not exceed the value of recovered assets. He warned professionals involved in asset recovery to avoid insider dealing, undervaluation, collusion with buyers, and diverting proceeds. The NDIC is currently developing a comprehensive Asset Management Policy to improve asset identification, documentation, valuation, disposal procedures, and accountability in recoveries. The corporation also aims to enhance collaboration with auctioneers, valuers, sales agents, surveyors, and other professionals to expedite loan recoveries and hasten the settlement of depositors' claims.",
  "summary": "The Nigeria Deposit Insurance Corporation (NDIC) has raised concerns over the refusal of some debtors of failed banks to repay outstanding loans, accusing them of deliberately frustrating recovery efforts through asset concealment, legal delays and intimidation. NDIC noted that such practices undermine efforts to recover funds belonging to depositors and delay the payment of outstanding […]",
  "key_points": [],
  "editors_take": null,
  "illustration": "https://urgent.news/ill/19262644.png",
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Punch",
        "title": "NDIC laments debtors’ refusal to repay failed bank loans",
        "url": "https://urgent.news/2026/11/10/ndic-laments-debtors-refusal-to-repay-failed-bank-loans",
        "published": "2026-11-10T05:47:48.000Z"
      }
    ]
  },
  "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."
}