The Nigeria Deposit Insurance Corporation (NDIC) is implementing stronger measures to recover debts from borrowers of failed banks following the introduction of enhanced enforcement powers through the NDIC Act 2023. This announcement was made by the Managing Director and Chief Executive, Mr. Thompson Oludare, at a seminar aimed at informing Debt Recovery Agents about these new provisions in Lagos. The NDIC Act 2023 allows the Corporation to take custody of properties from debtors identified as the owners and to freeze their funds held in any insured institution.

During the seminar, Oludare's representative emphasized the NDIC's commitment to addressing the issue of loan defaults, which have been exacerbated by lengthy legal battles employed by debtors to evade repayment. The NDIC plans to utilize all sections of the new law to improve the efficiency of debt recovery, underscoring a shift in approach towards managing non-performing loans from failed banks. This move is essential not only for the financial stability of the banking sector but also for maintaining public confidence in the deposit insurance system.

The NDIC's proactive stance comes at a time when many financial institutions are struggling with the implications of numerous bad loans. By enforcing the provisions of the NDIC Act 2023, the Corporation aims to deter loan defaults and facilitate a quicker recovery process, thereby stabilizing the banking environment. The changes signal a broader intention to reshape the regulatory landscape governing the banking sector in Nigeria, potentially leading to a more accountable financial ecosystem.