The Nigeria Deposit Insurance Corporation (NDIC) has warned against the diversion of funds realised from the sale and recovery of assets belonging to failed banks, declaring zero tolerance for financial misconduct in the liquidation process.
The Director of the Asset Management Department of NDIC, Mr Oluyinka Ogungbemi, gave the warning at the Stakeholders Seminar and Public Relations Workshop organised by the department in Abuja on Monday.
Ogungbemi said staff of the corporation had no access to funds recovered from the sale of failed banks’ assets, stressing that measures were in place to prevent their diversion.
He described asset realisation as the most challenging aspect of bank liquidation, noting that loan recovery remained the most difficult part of the process.
According to him, recovering loans after a bank has closed is more difficult because borrowers who failed to repay their debts while the bank was operational may become harder to reach.
He stressed the need for timely asset recovery, warning that delays could erode the value of assets and make outstanding loans increasingly difficult to recover.
Ogungbemi said the workshop was organised to improve loan and asset recovery while strengthening public confidence in the corporation’s liquidation process.
He urged stakeholders to maintain professionalism and uphold ethical standards in carrying out their responsibilities.
Describing the seminar as a deliberate strategic initiative rather than a routine gathering, he said the department was seeking to improve asset realisation by strengthening its relationship with relevant stakeholders.
He added that effective collaboration among stakeholders was essential to ensuring efficient recovery of failed banks’ assets and protecting the interests of depositors.
