The corporation is developing the asset-management policy to strengthen the recovery and disposal of loans, property, equipment and investments held by banks in liquidation.<\/p>\n
Better valuations, faster disposals and tighter accountability are expected to increase the cash available for liquidation dividends to depositors whose balances exceed the insured limits.\n<\/p>\n
\u201cWe are further strengthening our internal processes, including the development of a comprehensive Asset Management Policy to guide asset identification and documentation, valuation procedures, disposal strategies, transparency and accountability in recoveries,\u201d Theophilus said.\n<\/p>\n
NDIC\u2019s Asset Management Department manages the assets of closed deposit money banks, primary mortgage banks and microfinance banks. Its responsibilities include recovering risk assets, disposing of physical assets and selling investments such as stocks, Treasury bills, fixed deposits and interests in joint ventures.\n<\/p>\n
The corporation said loans and advances form the largest portion of failed banks\u2019 assets, making debt recovery a central part of liquidation. It also recovers funds from landed property, vehicles, financial instruments and other assets through structured disposal processes supervised by the NDIC.\n<\/p>\n
Theophilus said delays could erode the value of assets and slow payments to depositors. He cited unoccupied buildings, rusting generators and unpaid loans as examples of assets that lose value or become harder to recover when liquidation is delayed.<\/p>\n
\u201cA loan that was not repaid when the bank was alive does not become easier to recover when the bank is dead,\u201d he said. \u201cEvery delay slows payment to depositors.\u201d\n<\/p>\n
Read also:\u00a0NDIC shifts from claims payer to risk minimiser to prevent bank failures<\/a><\/strong>\n<\/p>\n The corporation recently conducted competitive sealed-bid auctions for physical assets of Union Homes Savings & Loans, Heritage Bank and Resort Savings & Loans in Lagos, Taraba and Adamawa states. The auctions were coordinated by the Asset Management Department and executed by appointed auctioneers.\n<\/p>\n Under the proposed policy, valuers, auctioneers, sales agents, surveyors and recovery agents will be expected to meet clearer standards on valuation, marketing, documentation, reporting and ethical conduct.\n<\/p>\n The NDIC said it expects credible and timely valuations, open and competitive disposal processes, traceable sales and full accounting for proceeds.<\/p>\n \u201cWe would rather hear a hard truth today than discover a costly failure tomorrow,\u201d Theophilus said, urging stakeholders to raise operational challenges early rather than allow problems to persist in the field.\n<\/p>\n The corporation also warned against inflated valuations that deter buyers, depressed valuations that short-change depositors, insider dealing, collusion with buyers and diversion of proceeds. It said the money recovered from failed banks belongs to depositors and must be handled with the highest level of integrity.\n<\/p>\n The policy is expected to support the corporation\u2019s broader effort to improve asset realisation across its operations. The NDIC is holding similar stakeholder engagements in Abuja, Enugu and Lagos as part of a strategy to strengthen relationships with professionals who work on recoveries and asset disposals in different parts of the country.\n<\/p>\n Theophilus said the corporation would provide clearer written mandates, defined timelines, feedback on performance and more stable engagement for service providers. He also said the NDIC would pursue joint training and knowledge exchange with professionals on emerging valuation methods, asset management and sustainable valuation practices.\n<\/p>\n \u201cIn return, you should expect clear mandates, open feedback, transparent dealings, shared strategy and capacity building,\u201d he said.<\/p>\n Read also:\u00a0NDIC tasks staff on better service as depositor payments hit N69.65bn<\/a><\/strong>\n<\/p>\n The initiative is likely to affect estate surveyors and valuers, auctioneers, sales agents, lawyers, recovery agents and other professionals engaged in liquidation work. The NDIC has previously urged the Nigerian Institution of Estate Surveyors and Valuers to deepen collaboration to ensure accurate and credible valuation of failed banks\u2019 assets.\n<\/p>\n The corporation said stronger collaboration with field professionals, supported by clearer valuation and disposal rules, should produce higher recoveries, faster resolution of failed banks and larger liquidation dividends for depositors above the insured limits.\n<\/p>\n \u201cThe ultimate winner is neither NDIC nor you. The ultimate winner is the depositor,\u201d Theophilus said. \u201cThe ordinary Nigerian who trusted a bank with his or her hard-earned money is looking to us to make them whole.\u201d\n<\/p>\n Onyinye Nwachukwu is the Abuja Bureau Chief of BusinessDay, overseeing coverage across Abuja and Northern Nigeria. With more than two decades of experience in economic and financial journalism, she reports on business, policy, and market trends, linking local developments to the global economy. A fellow of the International Monetary Fund (IMF) and recipient of the P. Vishwanathan Memorial Award for Excellence in Financial Journalism, she is known for her insightful storytelling and interviews with senior policymakers, diplomats, and business leaders. Well traveled and globally minded, Onyinye brings depth and international perspective to her reporting.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n Source: <\/p>\n The Nigeria Deposit Insurance Corporation (NDIC) is developing a comprehensive asset-management policy to tighten controls over the identification, valuation, documentation and disposal of assets belonging to failed banks, as it… <\/p>\n","protected":false},"author":1,"featured_media":15987,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-15986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/15986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/comments?post=15986"}],"version-history":[{"count":0,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/15986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media\/15987"}],"wp:attachment":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media?parent=15986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/categories?post=15986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/tags?post=15986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Related News<\/h4>\n<\/p><\/div>\n
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