The Nigeria Deposit Insurance Corporation (NDIC) has warned that debtors of failed banks are actively hindering the recovery of loans by hiding assets, dragging out legal proceedings and intimidating recovery teams.
According to the NDIC, these tactics are designed to frustrate the institution’s efforts to recover the money owed to the government and to protect the interests of the banks’ creditors. The agency said that the deliberate concealment of assets and the use of legal delays are common strategies employed by the debtors.
In a statement released by the NDIC, the regulator highlighted that intimidation of staff and other stakeholders is also a growing problem. “These actions undermine the recovery process and prolong the financial burden on the state,” the statement read.
The agency has urged all parties involved to cooperate fully with its recovery initiatives and to comply with legal procedures to ensure that the assets of failed banks are identified and returned to the rightful owners.
While the NDIC has not named specific banks or debtors in its announcement, the statement reflects ongoing concerns about the effectiveness of loan recovery in the wake of recent banking failures across Nigeria.
<small>Source: Punch Nigeria — read the original story there.</small>
