The Nigeria Deposit Insurance Corporation (NDIC) has issued a stern warning to debtors of failed financial institutions against concealing assets, frustrating court process service, and using intimidation tactics to evade their outstanding loan obligations.
​The warning was delivered on Monday, November 9, 2026, during the Stakeholders’ Seminar and Public Relations Workshop held in Abuja.
​Addressing attendees at the workshop, Ogungbemi Theophilus, the Director of the Asset Management Department at the NDIC, highlighted the persistent challenges the corporation faces in recovering debts from liquidated institutions.
He noted that borrowers who defaulted while institutions were operational often intensify their evasion strategies once a license is revoked, operates under the false impression that bank closures erase their liabilities.
​”Some debtors of failed banks believe that because a bank’s licence is revoked, they are not obliged to fulfil their responsibilities anymore,” Theophilus stated. “They hide assets, frustrate legal service, and employ delay tactics in court. Sometimes, they even try to intimidate our officers. But we must always carry out our duty professionally.”
​Theophilus explained that loan recovery remains one of the most complex and arduous phases of bank liquidation. Delays in legal proceedings and the concealment of physical properties lead to significant asset depreciation over time, directly impacting the corporation’s ability to reimburse uninsured depositors through liquidation dividends.
​The Asset Management Department oversees loan recoveries, physical properties, and investment portfolios across liquidated deposit money banks, primary mortgage banks, and microfinance banks. Funds recovered from these non-performing assets are converted to cash to settle account balances that exceed the statutory insured limit.
​Despite these ongoing legal hurdles, the NDIC continues to push forward with recovery operations nationwide. The warning follows recent public auctions conducted by the corporation on November 3 and November 4, 2026, across Lagos, Taraba, and Adamawa states to liquidate physical assets belonging to failed institutions such as Heritage Bank, Union Homes Savings and Loans, and Resort Savings and Loans.
​Looking ahead, the NDIC is refining its framework by developing a comprehensive Asset Management Policy. The corporation reiterated its commitment to enforcing recovery mandates through established legal channels, emphasizing zero tolerance for insider dealing or professional misconduct during liquidation operations.
