The NDIC and the EFCC have formalised a joint asset-recovery framework targeting the estates of 14 insolvent microfinance banks, aiming to maximise returns to creditors through coordinated forensic and legal action.
The Nigeria Deposit Insurance Corporation (NDIC) has entered a formal partnership with the Economic and Financial Crimes Commission (EFCC) to pursue asset recovery from the estates of 14 microfinance banks that were placed in liquidation between 2019 and 2024. The collaboration brings together the NDIC’s resolution expertise and the EFCC’s forensic investigation capability to maximise the recovery of assets for the benefit of depositors and other creditors.
The joint framework, signed at a ceremony in Abuja, establishes a shared intelligence platform that allows both agencies to trace assets that may have been transferred out of the institutions prior to or during the liquidation process. The NDIC estimates that up to ₦12.3 billion in recoverable assets has been identified across the 14 estates.
Scope of the Collaboration
The partnership covers forensic investigation of pre-liquidation transactions, tracing of assets held in connected entities, prosecution of individuals found to have fraudulently diverted bank assets, and the coordinated sale of recovered assets to generate dividend payments for creditors. A joint task force of 40 officers drawn from both agencies has been constituted and will begin field operations within the next 30 days.
Implications for Depositors
Insured depositors of the 14 banks have already received full payment up to the ₦5,000,000 ceiling. The recovery exercise is primarily intended to generate funds for uninsured depositors and other creditors who hold claims beyond the insured limit. The NDIC has indicated that initial dividend payments to uninsured creditors are expected within 18 months of the commencement of asset sales.