E-Financial
NDIC Intensifies Failed Banks Debt Recovery to Accelerate Depositors Payout
The Nigeria Deposit Insurance Corporation (NDIC) has intensified debt recovery efforts involving failed banks and mobile money operators in a move aimed at accelerating payments to depositors. The Corporation is engaging its debt recovery agents to familiarise them with the enhanced tools and enforcement mechanisms contained in the NDIC Act 2023.
In recognition of the critical role of debt recovery, the NDIC Act 2023 significantly strengthened and expanded the powers of the Corporation. The objective, according to Thompson Oludare, managing director/chief executive, NDIC, is to enable quicker and more effective recoveries, thereby accelerating the reimbursement of depositors.
Represented by Olufemi Oladepo Kushimo, director of the Legal Department at NDIC, he welcomed participants to the sensitisation seminar for NDIC Debt Recovery Agents in Lagos, saying prompt reimbursement of depositors reinforces public confidence in the banking system and encourages continued savings within formal financial institutions.
“Your role is central to this objective. The success of liquidation dividend payments and depositor protection depends heavily on the efficiency and effectiveness of your recovery efforts. The enhanced provisions of the NDIC Act are designed to support you in this task, and this seminar aims to familiarise you with these expanded powers,” he said.
He explained that the Act now provides strengthened tools for recovering debts, including measures to address recalcitrant debtors and, where necessary, issues involving criminal infractions. Participants at the seminar are being guided on how to identify such infractions and how they may be referred to the appropriate agencies for prosecution, as well as the practical steps required for efficient debt recovery to support the payment of liquidation dividends.
“We currently have a number of banks in liquidation, including some that have been in that status for some time. In several instances, challenges such as protracted litigation, repeated adjournments and an entrenched culture of loan default have hindered effective recovery. These realities informed the strengthening of the Act and highlight the need for all stakeholders to be fully aligned and equipped to utilise these powers properly and responsibly in pursuit of the Corporation’s mandate,” Oludare said.
He added that the NDIC Act 2023 provides a comprehensive bouquet of tools for debt recovery, which the Corporation is prepared to deploy fully. “We intend to utilise every section, provision and enforcement mechanism available under the law. This includes pursuing parties at fault, not only to enhance recoveries, but also to serve as a deterrent and to sanitise the banking industry.
“Those responsible for bank failures must be held accountable. We are prepared to apply every relevant provision of the Act to ensure effective recovery and to bring culpable parties to justice,” he said.
Patricia Okosun, director of the Asset Management Department, said the revised Act has strengthened the overall framework for debt recovery and enhanced the mechanisms through which outstanding obligations are pursued.
“We are engaging debt recovery agents to familiarise them with the additional tools now available under the revised Act, beyond what they previously relied on. The essence of this engagement is to sensitise them to the new provisions that will support and improve their work. We are confident that these enhanced powers will enable us to recover more debts, and more efficiently, so that we can reimburse depositors,” she said.
She added that the Corporation remains optimistic about recovery prospects. “That optimism is precisely why we are equipping recovery agents with strengthened legal tools. Our objective is to recover as much as possible.
“Naturally, the earlier the recovery, the better, as it enables quicker reimbursement of depositors. However, given the realities of litigation and related processes, it is not possible to fix a definite timeline. What remains clear is that speed and efficiency are priorities,” Okosun said.
Securities and Exchange Commission (SEC) has commenced the implementation of a fully electronic registration system for capital market operators, marking a major milestone in its digital transformation drive aimed at improving regulatory efficiency, reducing processing time and strengthening oversight of Nigeria’s capital market.
The new electronic registration (e-Registration) platform, deployed through the Commission’s ePortal, allows designated regulatory services to be completed entirely online, eliminating manual processes for services covered in the current phase.
The initiative comes as the SEC intensifies reforms to modernise the Nigerian capital market, enhance the ease of doing business and leverage technology to improve service delivery to market participants.
In a statement issued on Wednesday, the Commission said Capital Market Operators (CMOs) can now complete designated post-registration processes electronically, from application submission and regulatory review to approvals and the communication of regulatory decisions.
According to the regulator, the platform is designed to simplify interactions between operators and the Commission, reduce administrative bottlenecks, shorten processing timelines and give applicants real-time visibility into the status of their applications.
The SEC said the transition to a fully digital registration process would also improve operational efficiency by introducing standardised workflows, electronic documentation, secure digital record management and stronger audit trails, while enhancing regulatory oversight.
“The new platform represents a major step towards creating a seamless digital regulatory ecosystem that enhances operational efficiency while strengthening regulatory effectiveness,” the Commission stated.
Beyond improving efficiency, the regulator said the platform would reinforce the integrity of regulatory processes by minimising delays associated with paper-based documentation and improving the quality of regulatory data used for supervision and decision-making.
It added that the digital system would provide a stronger foundation for regulatory analytics and future technology-driven innovations aimed at enhancing market oversight.
The Commission explained that the implementation is being rolled out in phases to ensure a smooth transition for market participants while safeguarding the stability and integrity of regulatory processes.
For now, the e-Registration platform is limited to post-registration services for existing Capital Market Operators.
entrants seeking registration in the Nigerian capital market are not yet covered under the current phase, adding that electronic processing for new registrations will be introduced at a later date.
The Commission urged all licensed operators to familiarise themselves with the new platform and comply with implementation timelines to ensure a seamless migration to the digital system.
The latest move forms part of the SEC’s broader reform agenda to modernise market infrastructure, improve transparency and strengthen investor confidence as Nigeria seeks to deepen its capital market and enhance its competitiveness in the global financial system.
Market observers believe the digital registration initiative is expected to reduce compliance costs, improve regulatory turnaround time and support a more efficient operating environment for licensed operators, while reinforcing the Commission’s push towards a technology-driven capital market ecosystem.
Elon Musk’s social media company X, formerly known as Twitter, launched its own bank account-like product where users can send money to one another.
The service, known as X Money, is not a new bank.
X Money is using technology and banking services provided by Cross River Bank, and branding that backbone as X Money.
It is common for new financial companies to use a traditional bank’s backbone to launch its services, as chartering a new bank is a timely and costly process.
Currently X Money is invite only, and users will receive a “X”-branded Visa debit card that is useable at any ATM.
Users of X will be able to send money to other X users in real-time, the company said. Invitations are only available to X’s paying members presently
In order to attract customers, X Money is offering a 6% yield on deposits and 3% cashback on eligible purchases.
In order to earn the 6% yield, a customer would need to deposit at least $1,000 into an account.
Customers would also have to be signed up for X’s premium services, which is at least $8 a month. It would require at least a deposit of $1,600 in order to cover X’s premium services cost.
Musk has long talked about turning X into an “everything app” that would include financial services.
Musk has his origins in financial services, creating one of the first online banks under the brand X.com. That company was later bought and merged into what is now known as PayPal.
It’s still early for X Money, but the company is entering into a competitive market, dominated by PayPal’s Venmo money transfer service and other peer-to-peer money transfer services like Zelle and Cash App.
Central Bank of Nigeria (CBN) imposed N430 million in penalties on financial institutions in 2025 over delays in resolving customer complaints and failure to comply with its directives, underscoring a tougher regulatory stance on consumer protection in the banking sector.
The sanctions were disclosed in the apex bank’s 2025 Annual Report, which showed that 21 penalties worth N430 million were imposed on financial institutions during the review period for infractions linked to complaints management.
According to Nairametrics, the report stated that the affected institutions were sanctioned for “delays in resolving customer complaints to failure to comply with the Bank’s directives.”
The report read, “the Bank imposed 21 penalties on financial institutions to the tune of N430.00 million, for infractions ranging from delays in resolving customer complaints to failure to comply with the Bank’s directives.”
The latest enforcement action comes as the CBN recorded a rise in the number of complaints lodged by users of financial services, suggesting greater reliance on the regulator’s consumer protection framework.
According to the report, the CBN received 23,129 complaints from consumers of financial services in 2025, representing a 10.53% increase from the 20,925 complaints recorded in 2024.
The apex bank attributed the increase to growing public awareness and stronger confidence in its complaint resolution process rather than a deterioration in banking services.
The report stated, “The Bank received a total of 23,129 complaints from consumers of financial services in 2025, a rise of 10.53%, above the 20,925 in 2024. The trend reflected increased awareness and improved confidence in the Bank’s consumer complaint resolution process.”
It added that 18,824 complaints were successfully resolved during the year, representing a 9.36% increase from the 17,213 complaints resolved in 2024.
The report also showed a sharp increase in the value of claims handled by the regulator.
Claims denominated in local currency rose to N40.61 billion in 2025 from N17.13 billion a year earlier, while foreign currency claims climbed to $344.2 million from $1.06 million.
consumers recovered N19.12 billion and $329.3 million in refunds during the year, compared with N9.66 billion and $0.67 million refunded in 2024.
Beyond the N430 million sanctions relating to customer complaints, the CBN disclosed that it imposed another 11 penalties worth N1.26 billion on financial institutions for regulatory breaches and failure to respond to regulatory queries.
The report indicates that complaints management formed part of a wider overhaul of the CBN’s supervisory and market conduct framework in 2025.
In 2022, the CBN issued a guide on how aggrieved customers can complain about financial institutions such as commercial banks.
The regulator established a dedicated Compliance Department to strengthen oversight of financial crime, market conduct, complaints management, advertising standards, cybersecurity, data protection and corporate governance across CBN-regulated institutions.
Olayemi Cardoso, governor, CBN, recently said that the CBN and deposit money banks are reviewing excessive transaction alerts and customer charges amid complaints from bank users over confusing debit notifications and deductions.
Cardoso said the apex bank had set up a quarterly engagement structure involving its consumer protection team, deposit money banks and the top 10 microfinance banks to address unresolved customer complaints.
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