Accurate Asset Valuation Key to Repaying Depositors in Failed Banks – NDIC

By Oluwakemi Kindness

The Nigeria Deposit Insurance Corporation (NDIC) says accurate  valuation of assets belonging to failed banks is essential to protecting depositors and maintaining confidence in the financial system.

NDIC Managing Director/Chief Executive, Thompson Oludare-Sunday, stated this during a courtesy visit by the President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Dr. Victor Adekunle Alonge, and members of the Institution’s executive committee at the NDIC Head Office in Abuja.

According to a statement issued by the NDIC, the Corporation relies heavily on valuation reports to determine the actual worth of assets left behind by failed banks.

The accuracy of these assessments, it says ensures assets are sold at fair market value and enables the Corporation to repay depositors beyond the insured limits.

The statement, signed by the Head of Communication and Public Affairs, Hawwau Gambo, states that professional valuation plays a direct role in transparency, fairness and value-for-money in the liquidation and recovery process.

Oludare-Sunday cautioned valuers to maintain strict ethical standards and avoid insider practices capable of undermining the system. He also disclosed that NDIC is reinforcing its internal controls through a new Asset Management Policy that will guide asset identification, valuation procedures, disposal strategies and accountability mechanisms.

In his remarks, NIESV President Dr. Alonge restated the Institution’s commitment to professional conduct, noting that disciplinary measures are enforced for members who breach ethical guidelines. He also pledged continued collaboration and technical support to NDIC.

The organisations agreed to strengthen cooperation through joint training, knowledge exchange and capacity-building initiatives, particularly in modern valuation techniques and sustainable asset management.