The Nigeria Deposit Insurance Corporation (NDIC) has stepped up efforts to eliminate legal bottlenecks that slow down the recovery of debts and seizure of assets from failed banks.

The corporation said the NDIC Act 2023 has significantly strengthened its authority, particularly in debt recovery and the takeover of properties pledged as collateral. The new law is expected to reduce prolonged court cases that previously delayed the recovery of funds owed by debtors.

Speaking during a training programme for debt recovery agents in Abuja on Thursday, Director of Legal Services, Mr. Kushimo Oladipo, explained that the workshop was designed to help agents better understand and apply the provisions of the new Act.

He noted that in the past, debtors frequently used legal processes to stall the seizure of mortgaged assets. However, the 2023 Act now grants NDIC and its authorised agents clearer and stronger powers to recover debts within the ambit of the law.

Oladipo stressed that efficient debt recovery is crucial, as funds realised from recovered loans are used to reimburse depositors of failed banks, particularly amounts exceeding the insured limit.

“The NDIC Act 2023 is a foolproof key to enhancing our debt recovery mechanism. It strengthens our asset recovery powers and helps us overcome legal challenges that previously delayed recoveries.

“When depositors are confident that their funds are safe and recoverable, it enhances financial inclusion and reinforces stability in the banking sector. A stable financial system is essential for economic growth,” he said.

Also speaking, Director of the Asset Management Department, Patricia Okosun, disclosed that NDIC is currently managing assets of more than 600 failed financial institutions, including about 560 microfinance banks and 32 deposit money banks.

She explained that loan recovery remains a major priority, as outstanding loans and advances granted by the failed banks represent a key source of funds for reimbursing depositors.

Okosun noted that many recovery agents previously lacked full awareness of the legal powers available under the law, which limited their effectiveness, especially when debtors sought court injunctions to prevent asset seizure.

According to her, the training aims to educate agents on the new provisions of the Act and strengthen collaboration between NDIC and recovery agents, who operate on a commission basis.

She added that improved understanding of the law and closer cooperation would enhance recovery outcomes, restore depositor confidence, and further strengthen stability in Nigeria’s banking system.