The Nigeria Deposit Insurance Corporation NDIC has reaffirmed its statutory mandate to protect depositors, disclosing that about N1.5 trillion remains trapped in nearly 50 failed banks and microfinance institutions across the country. The corporation said ongoing liquidation processes are aimed at recovering assets and reimbursing eligible depositors.
Speaking at a stakeholders forum in Abuja, NDIC officials explained that many of the failed institutions collapsed due to weak corporate governance, poor risk management, and insider abuse. They noted that asset recovery remains a complex process often slowed by protracted litigation and insufficient collateral realisation.
The corporation stated that it has intensified collaboration with law enforcement agencies and the judiciary to accelerate debt recovery and asset disposal. According to NDIC, insured depositors have continued to receive reimbursements within the statutory limits, while efforts are underway to maximise returns for uninsured depositors.
Financial analysts say the disclosure underscores the need for stronger regulatory oversight in the banking and microfinance sectors. They argue that sustained monitoring and early intervention mechanisms are critical in preventing systemic failures.
The NDIC also called on depositors to verify the status of licensed institutions before placing funds. It stressed that public confidence in the financial system depends on compliance with prudential standards and transparent governance practices.
As economic pressures persist, stakeholders emphasise that restoring trust in financial institutions will require both regulatory discipline and enhanced financial literacy among consumers.
