Connect with us

Business

Abuja court ruling opens fresh battle on Fuel import, read details

Published

on

The Federal High Court in Abuja’s order directing the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting and renewing petroleum products import licences has opened a fresh battle over fuel imports as domestic refining capacity expands.

The ruling has put the court’s decision in Abuja alongside a pending suit by Dangote Petroleum Refinery at the Federal High Court in Lagos, where the refinery is challenging the continued issuance and renewal of petroleum product import licences.

While petroleum marketers have welcomed the Abuja judgment and called for continued access to import licences, the development has also renewed debate over whether domestic refineries should be protected from import competition and whether the Petroleum Industry Act provides an adequate framework for the changing market.

The marketers, under the Petroleum Products Retail Outlets Owners Association of Nigeria and the Independent Petroleum Marketers Association of Nigeria, said competition between local refiners and importers could improve petrol availability and affordability for Nigerians.

This follows the issuance of import licences that have allowed the importation of an average of 95.7 million litres of petrol per day, translating to a total of 23.2 billion litres between January and August 2026.

Abuja ruling

The PUNCH reports that a Federal High Court in Abuja, presided over by Justice Inyang Ekwo, ordered the NMDPRA to continue granting, issuing, extending, renewing or reissuing petroleum products import licences to Matrix Energy, A.A. Rano Nigeria Limited and AYM Shafa Limited.

Justice Ekwo, in his judgment, held that the regulator’s refusal to issue or renew the import licences of the three oil marketers was in “direct non-compliance” with the Petroleum Industry Act, 2021.

The judge held that the NMDPRA had acted beyond the provisions of the law in its handling of the companies’ applications for import licences. He said the consequence of non-compliance with the PIA and other relevant laws was that any exercise by the regulator in respect of the import licences would be “null and void.”

The three oil marketers had approached the court seeking declarations that the PIA did not prohibit the importation of petroleum products into Nigeria or prevent the NMDPRA from granting or renewing licences for eligible importers.

They also argued that the regulator was required to promote competition in the midstream and downstream petroleum sectors.

Justice Ekwo agreed with the plaintiffs, holding that relevant provisions of the PIA, read together with Section 72 of the Federal Competition and Consumer Protection Act, imposed an obligation on the NMDPRA to promote a competitive market and prevent abuse of dominant positions and restrictive business practices.

The judge declared that the three companies were entitled to the issuance, extension or renewal of petroleum products import licences upon fulfilling the conditions stipulated by the NMDPRA.

Specifically, the court ordered the regulator to “continue to grant, issue, extend, renew, or reissue” licences, permits and authorisations for midstream and downstream petroleum operations, particularly those relating to the importation of petroleum products.

The order, however, was subject to the companies fulfilling all applicable statutory and regulatory preconditions. The plaintiffs’ case was based on the alleged refusal of the NMDPRA to regularly issue or renew their petroleum products import licences.

In an affidavit, the Executive Director of A.A. Rano Nigeria Limited, Sabiu Saidu Mahuta, alleged that since July 2025, the regulator had granted or renewed the companies’ import licences only sporadically.

He argued that the situation was contributing to market dominance and monopolisation of the downstream petroleum sector by local refineries. The companies also told the court that they had collectively invested more than $20bn in infrastructure, logistics and retail networks for their petroleum products businesses.

Their counsel, Raji Ahmed, SAN, argued that allowing both imports and local production would promote competition, check monopoly and price-fixing, and improve the midstream and downstream petroleum sector.

The Abuja ruling is coming even as the Dangote refinery has a pending suit praying the court to stop the NMDPRA from issuing import licences to the Nigerian National Petroleum Company Limited and other marketers.

Dangote’s pending suit

The Federal High Court in Lagos had in June fixed October 7 to hear a suit filed by the Dangote refinery challenging the Federal Government’s issuance of fuel import licences to NNPC and several petroleum marketers.

The Dangote refinery, in suit No. FHC/L/CS/857/2026, is requesting the court to nullify import licences allegedly issued or renewed around May 6, 2026, in favour of the NNPC and marketers, including NIPCO, AA Rano, Matrix, Shafa, Pinnacle, and Bono.

See also  Nigeria’s exports fall 5.3% in Q4 2025, imports rise – NBS

The plaintiff further argued that the licences were granted in violation of an earlier court order made on 29 April 2026, which directed all parties to maintain the status quo pending the suit’s resolution.

With both cases before courts of coordinate jurisdiction, the Abuja ruling could complicate the refinery’s legal challenge, particularly as it was not a respondent in the Abuja suit and may therefore be unable to appeal the judgment directly.

The regulator recently approved 830,000 metric tonnes of petrol imports for the fourth quarter of 2026, with Matrix Energy, A.A. Rano and AYM Shafa among six companies issued permits.

Oil marketers speak

Reacting to the Abuja judgment, the National President of PETROAN, Billy Gillis-Harry, described it as a victory for Nigerians, arguing that diversifying supply sources would help address concerns over the availability and cost of petrol.

“The court ruling means a lot. It means victory for the Nigerian people. Once every stakeholder in the industry is focused on ensuring that there is availability of petroleum products, then affordability issues will become something that will be addressed,” he said.

He added, “So it is a victory for the Nigerian people, not just retail outlet owners or marketers. So we congratulate all those who have stood firm to face the tyranny of monopoly and get answers.”

Gillis-Harry also commended the petroleum regulator, saying the judgment reinforced its responsibility to serve consumers and maintain a competitive market. “We salute NMDPRA. It tells us that they are not ready to take sides with anybody. They are there to serve Nigerians, and we look forward to greater days ahead,” he said.

However, the PETROAN president called for the continued issuance of import licences to be extended beyond the three companies involved in the case.

He said, “However, the licensees should not be limited to only the three companies. It should be available to every company that has the capacity to import products and supply Nigerians at an affordable price and available to everyone.”

“In our opinion, supply diversification will guarantee affordability of petroleum products,” he added.

Similarly, the National Publicity Secretary of IPMAN, Chinedu Ukadike, said the judgment should be respected, adding that marketers would continue to purchase products from suppliers offering competitive prices.

“Well, the court is a court of justice, and I know that they have looked at the pros and cons. They also looked at the document submitted before it, and they reviewed the Petroleum Industry Act,” Ukadike said.

He added, “While the refinery can meet up with domestic demand, as I said before, it is a court ruling that must be obeyed.” Ukadike described the judgment as a win-win for marketers, saying their purchasing decisions would depend on the prices offered by domestic refineries and importers.

“If Dangote is producing and it’s cheap, we will look at it and buy from them as marketers. On the other hand, if products from importers are cheaper, we would also buy from them,” he said. “Our business is to ensure that we continue to service and buy products at the cheapest rate and sell to our numerous consumers.”

Different rulings

Speaking with our correspondent, a major marketer, who pleaded for anonymity because of the sensitivity of the matter, expressed concerns over the manner in which operators in the midstream and downstream sectors resorted to courts of coordinate jurisdiction to settle their disputes.

According to the operator, it is sad that the courts are being used as weapons to fight battles in an industry that is supposed to be peaceful. He stated that the marketers appeared to have proved a point that Nigeria belongs to everybody.

“It is sad that we found ourselves in this situation. We now have different courts giving rulings in favour of different groups. It is sad that a court in Lagos ruled that a company in a free zone is not under the regulator. How is that possible?

“It is also sad that a court in Abuja ruled in favour of these marketers without listening to other parties. I think the marketers just wanted to prove that nobody has a monopoly on the courts. But the issue is that Dangote still has a case challenging importation in court. Let’s see how it goes,” the operator said.

However, the Vice President of IPMAN, Hammed Fashola, maintained that the cases were necessary to test the position of the PIA in court.

Fashola advised all operating partners and regulatory bodies within the oil and gas downstream sector to resolve ongoing legal disputes without jeopardising the steady availability and distribution of petroleum products across the country.

See also  Slain husband’s family slams Tinubu’s pardon for Maryam Sanda

Speaking over parallel court cases involving major sector operators regarding petroleum importation regulations under the PIA, IPMAN Vice President, Fashola, emphasised that testing legal frameworks in court remains a legitimate avenue for clarifying ambiguous statutory provisions.

“First of all, if there is any dispute, I think the right place to go is the court. Don’t forget that we have the PIA, and if there is any issue that is controversial, the best place is to approach the court for interpretation,” Fashola said, adding that stakeholders should await judicial outcomes or pursue an amicable round-table dialogue to align market operations.

Fashola maintained that litigation should not spark alarm or trigger product scarcity, expressing confidence that higher courts remain accessible to resolve any conflicting judicial interpretations that may arise during initial proceedings.

“They are in the high courts now. I think the Appeal Court is still there and the Supreme Court is also there. So, they will explore all the legal avenues that are available. So, I think the case will be resolved,” he stated.

He urged all parties to prioritise consumer supply and maintain current distribution stability while legal and regulatory clarifications are finalised.

“Dangote, the importers, and every stakeholder—we should just appeal to them that we should not do anything that will interrupt the peace that we are enjoying now, especially the availability of products in the country,” he urged.

“It’s good they subject the PIA to a test. I think that’s what they are doing. At the end of the day, they will still come back to the round table and resolve it. And if they cannot do that, I think the court will resolve everything, and everybody will know how the game should be played as far as oil and gas is concerned and in relationship with the PIA,” Fashola submitted.

Experts react

Reacting, an energy sector expert, Mr Dan Kunle, called for an immediate amendment of the PIA, warning that its current provisions regarding petroleum product importation are outdated and economically unviable for the country.

Kunle noted that while recent judicial interpretations upholding import permissions may align strictly with the written letter of the PIA, the law itself no longer reflects Nigeria’s prevailing economic reality.

According to him, the PIA was enacted at a time when the country relied solely on inefficient, state-owned refineries, long before mega private refining infrastructure such as the Dangote refinery became operational.

“If you go by the provisions of the Petroleum Industry Act, the court is just trying to align with the law. But at the time the PIA was passed, lawmakers did not foresee that a refinery of this magnitude would come on stream to meet all our domestic needs. The law is no longer current; it is completely out of tune,” Kunle stated.

He argued that legal provisions must align with economic rationality, stressing that continuing to allow unchecked importation of refined products when domestic refining capacity exists undermines national interest and state protection.

Kunle advised the Federal Government and regulatory bodies, including the NMDPRA, to transmit an executive bill to the National Assembly to review the Act.

He proposed that under an amended PIA, the power to permit fuel imports should be discretionary and strictly tied to national strategic needs, such as mitigating supply shortages, rather than serving as a default market mechanism.

“At times, certain actions are legal by law, but they are not economically rational. You cannot justify importing inferior products when you have superior local production capacity, simply under the guise of preventing a monopoly. The state must protect its economy against foreign importation while retaining a strictly regulated window for contingency imports,” he added.

Gradual end to imports

The Crude Oil Refinery-Owners Association of Nigeria has called for a gradual end to petrol imports, lamenting that some domestic refineries are struggling to obtain crude oil on commercially viable terms despite the country’s abundant resources.

The Chairman of CORAN, Momoh Oyarekhua, made the call on Monday at the third Nigeria Oil Refining Summit organised by the association in Lagos.

Oyarekhua said the difficulties faced by some local refineries in securing crude had contributed to the continued importation of petroleum products, despite the availability of domestic refining capacity.

He said, “We acknowledge the remarkable progress made in domestic refining. Local refining is increasingly transforming Nigeria’s fuel supply landscape, demonstrating what is possible when investment, policy, and industry align.

See also  Amaechi reveals how Tinubu can be defeated in 2027

“However, significant challenges remain. Despite our abundant crude resources, some domestic refineries continue to face difficulties accessing crude oil on commercially viable terms. At the same time, fuel imports persist while local refining capacity remains underutilised.”

To address the challenges, the CORAN chairman called for the full institutionalisation of the naira-for-crude policy, with transparent access for qualifying domestic refineries, including modular plants.

He also urged the Federal Government to strengthen enforcement of the Domestic Crude Supply Obligation under Section 109 of the Petroleum Industry Act, while preserving commercial arrangements between crude producers and refiners.

Oyarekhua proposed a domestic crude pricing framework that would reflect crude quality, delivery points, international logistics costs avoided, and actual domestic transportation expenses.

He also advocated crude swaps and proximity-based supply arrangements to enable oil-producing assets close to refineries to supply them without transporting crude through distant export terminals.

On petroleum product imports, he called for a progressive reduction, with imports restricted to objectively determined domestic supply shortfalls and strategic stock requirements.

“Refining for value means more than producing fuel. It means retaining foreign exchange, creating jobs, developing local expertise, supporting petrochemicals and manufacturing, and capturing greater economic value within Nigeria,” he said.

The chairman said the continued importation of petroleum products despite available local refining capacity represented a major challenge to Nigeria’s efforts to derive greater economic value from its crude resources.

Oyarekhua said, “Nigeria should not continue exporting crude, exporting jobs and importing the same petroleum products at considerable economic cost.”

The CORAN chairman also called for a dedicated financing framework to support the construction of new refineries and the expansion of existing facilities.

He said the proposed framework should provide long-term financing, guarantees and refinancing mechanisms to address the funding challenges facing refinery operators.

Meanwhile, economist Mustafa Chike-Obi has argued that domestic refineries should not receive indefinite protection from import competition.

Speaking on the Policy without Politics podcast with development economist Dr Ken Ikpe, the former Chairman of Fidelity Bank Nigeria said, “I am an opponent of refineries having an unlimited period of time while their products are banned from competition.

“For protection, I think there should be a time. But once you are insisting on protection, it just tells me that you don’t think you can compete with imports. Now what it will tell you is that the quality is not the same.

“Look, when we’re importing fuel, no Nigerians are going to complain about the quality. We’re not interested in higher quality for sure. We just want petrol that can work.”

On the continued rehabilitation of the government-owned refineries in Port Harcourt, Warri and Kaduna, the former banker questioned the rationale for committing more public funds to facilities he described as old and inefficient.

“Talking about this turnaround stuff, I find this very curious. Should the Federal Government, which owns refineries in Port Harcourt, Warri and Kaduna, deserve another round of turnaround? They should not be involved in that business at all.

“So they shouldn’t go there. If we go there, it’s a runaround; it’s not a turnaround. It may be more than a runaround. It may be a runaround with devious intentions.”

Asked what he meant by “devious intentions,” Obi replied, “Diversion of funds. Because it’s a good way to divert funds.

“You say you’re turning it around, and then the money disappears and nothing happens. We’ve seen this many, many times. And this is not an attack on this government, but we’ve seen it through successive governments.”

He said the government should instead acknowledge that the refineries had become technologically outdated and redirect investment towards more efficient facilities and industries.

“It’s going to work next week. There’s fire in Port Harcourt. So I think the whole idea of the emotional investment is that those refineries are old.

“They are old technology. They will never be as efficient as the Dangote refinery. They will certainly not be as efficient as the foreign equivalent.

“And it’s just a waste of time, and it’s an emotional thing. And so we should stay away from those kinds of things and focus on industries and refineries that are efficient. And these ones will never be efficient.

“So yes, I subscribe to the theory that it’s a runaround, and that’s the best you can say about it. It could be worse than that.”

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Business

Tinubu launches N52,500 minimum pension for 173,209 retirees

Published

on

President Bola Tinubu on Tuesday launched a N52,500 monthly minimum pension guarantee for 173,209 eligible retirees under the Contributory Pension Scheme, ending a 22-year delay in implementing the provision of the Pension Reform Act.

The President also inaugurated the Pension Industry Healthcare Plan for Retirees, known as PenCare, to provide free essential healthcare services to low-income pensioners.

Tinubu, who was represented by Senate President Godswill Akpabio, announced the initiatives during the Presidential Pension Security Initiatives ceremony at the State House Banquet Hall, Abuja.

Declaring the minimum pension guarantee operational, he said, “By the authority vested in me as President, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, I hereby declare the Minimum Pension Guarantee Scheme commenced.”

The President explained that the guarantee, first provided for under the Pension Reform Act of 2004 and retained in the 2014 legislation, had remained unimplemented despite successive administrations.

“From this day, there is a floor beneath the Nigerian retiree. No one who contributed under the Contributory Pension Scheme will ever be allowed to fall below,” he said.

Tinubu urged future administrations to maintain the guarantee, declaring, “Raise it. But never remove the floor.”

On healthcare, he said the PenCare initiative would protect vulnerable retirees from medical expenses capable of exhausting their pension savings.

“PenCare gives our low-income retirees access to essential health care without charge,” he said, adding that beneficiaries would begin receiving healthcare access cards in the coming months.

The President also disclosed that his administration had issued a N758bn bond to address longstanding pension arrears and approved a N32,000 monthly consequential adjustment for affected federal pensioners.

He said states had spent over N1tn settling pension obligations, attributing their improved financial capacity partly to subsidy removal.

See also  Nigeria loses N1.76tn after missing OPEC quota

Citing a World Bank report, Tinubu said states’ revenues increased by about 93 per cent in real terms between 2023 and 2025, while the share of their budgets devoted to capital projects rose from 46 to 61 per cent.

He also disclosed that government-backed credit initiatives had unlocked over N64bn for 174,000 borrowers, while more than 350,000 Nigerians had accessed approximately N53bn in consumer credit.

In her opening remarks, the Director-General of the National Pension Commission, Omolola Oloworaran, announced that the guaranteed minimum pension had been fixed at N52,500 monthly.

“The minimum pensions in the Federal Republic of Nigeria is 52,500 naira every month,” she said.

According to her, 173,209 retirees qualify for the guarantee, comprising 34 per cent from federal service, 12 per cent from state employment and 54 per cent from the private sector.

She explained that the amount had been actuarially validated and would be subject to periodic review.

“The figure was not plucked from the air. It has been validated by an actuary, and it is subject to review,” Oloworaran noted.

She disclosed that more than N400bn was available in the Pension Protection Fund to finance the guarantee, while more than 65 per cent of private-sector retirees currently earned below the new threshold.

The PenCom boss also revealed that states inherited over N2tn in pension liabilities, of which N1.07tn had been settled.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

NERC okays N30bn to meter Band A customers, read details

Published

on

The Nigerian Electricity Regulatory Commission (NERC) has approved N30bn for the third phase of the Meter Acquisition Fund to accelerate the installation of electricity meters for unmetered Band A customers and expand coverage among Band B consumers.

The regulator has also directed electricity distribution companies to complete all meter installations under the programme by 31 May, 2027, warning that customers must not be charged for meters provided through the initiative.

The commission disclosed this in Order No. NERC/2026/121 on the operationalisation of Tranche C of the Meter Acquisition Fund, effective 2 November, 2026. It announced the order in a post on its official X handle on Tuesday.

The post read, “The Nigerian Electricity Regulatory Commission (NERC or the Commission) hereby informs electricity consumers and stakeholders of the issuance of Order No. NERC/2026/121 on the Operationalisation of Tranche C of the Meter Acquisition Fund, effective 2 November 2026.

“The Commission has approved N30 billion for Tranche C, to be allocated among the eleven Distribution Companies (DisCos) in proportion to their respective contributions to the Fund. The funding is intended to meter all remaining unmetered Band A customers and accelerate the metering of Band B customers, with equitable distribution across states within the respective DisCo franchise areas.”

The latest funding is part of the Federal Government’s Presidential Metering Initiative, which seeks to close the country’s persistent electricity metering gap, protect consumers from estimated billing and improve accountability in the power distribution system.

According to the order, the approved N30bn will be shared among the 11 electricity distribution companies in proportion to their respective contributions to the Meter Acquisition Fund.

See also  China supplies 39% of Nigeria’s N28tn imports

The funds will be used to provide meters for all remaining unmetered Band A customers while accelerating installations for Band B consumers. The commission also directed that the distribution should be equitable across states within each DisCo’s franchise area.

Under the arrangement, the distribution companies are required to conduct transparent procurement exercises involving eligible Local Meter Manufacturers and Assemblers and Meter Asset Providers with verified meter stocks.

NERC said it had prescribed maximum procurement prices based on the median national bid prices submitted by Meter Asset Providers during the September 2026 bidding cycle.

The commission also introduced a two-stage payment arrangement to strengthen accountability and ensure that providers deliver the meters before receiving full payment.

Under the arrangement, 70 per cent of the contract payment will be released after verification of delivered meter stocks, while the remaining 30 per cent will be paid after the complete installation of the meters has been confirmed.

The regulator reiterated that all meters supplied and installed under the fund must be provided free of charge to electricity consumers, warning against attempts by distribution companies or their agents to sell them.

It further directed that every meter supplied under the programme must prominently display the name of the relevant distribution company, the applicable tranche of the Meter Acquisition Fund and the inscription, “NOT FOR SALE”.

“The Commission reiterates that all meters supplied and installed under the MAF programme shall be provided FREE OF CHARGE to customers. Every meter must prominently display the relevant DisCo’s name, the applicable MAF tranche and the inscription “NOT FOR SALE.

See also  Opposition parties weigh election boycott ahead of 2027

“Where a DisCo initiates the relocation of an existing customer’s connection point for revenue protection purposes, the cost shall be borne by the DisCo. The Order also provides sanctions where DisCo defaults impede meter installation,” the report added.

The order also addressed situations where distribution companies relocate customers’ existing connection points for revenue protection purposes.

According to NERC, where a DisCo initiates such relocation, it must bear the associated cost rather than transfer the financial burden to the affected customer.

The commission also provided for sanctions where defaults by distribution companies obstruct or delay meter installations, reinforcing the responsibility of operators to ensure that the programme is implemented within the stipulated period.

To prevent diversion of funds and ensure proper implementation, the regulator prescribed monitoring, reporting and evaluation requirements for the Fund Manager, distribution companies and participating meter providers.

It also directed that all supply and installation contracts executed under Tranche C must be submitted to the commission.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

NDIC laments debtors’ refusal to repay failed bank loans

Published

on

The Nigeria Deposit Insurance Corporation has expressed concern over the refusal of some debtors of failed banks to repay outstanding loans, accusing them of deliberately frustrating recovery efforts through asset concealment, legal delays and intimidation.

The corporation warned that such practices undermine efforts to recover funds belonging to depositors and delay the payment of outstanding claims to customers of liquidated financial institutions.

The Director of the Asset Management Department of the NDIC, Ogungbemi Theophilus, raised the concerns on Monday during the Stakeholders’ Seminar and Public Relations Workshop held at Exclusive Serene Hotels and Suites, Wuye, Abuja.

Speaking on the challenges confronting the corporation in recovering assets of failed banks, Theophilus said, “Some debtors of failed banks believe that because a bank’s licence is revoked, he is not obliged to fulfil his responsibilities anymore. They hide assets. They frustrate service. Employ delay tactics in court. Sometimes, they try to intimidate. But we have to always do our job and professionally too.”

He explained that recovering outstanding loans remained one of the most difficult aspects of bank liquidation, particularly when borrowers failed to honour their obligations before the affected institutions lost their operating licences.

“A loan that was not repaid when the bank was alive does not become easier to recover when the bank is dead,” he noted.

The director noted that delays in recovering loans and disposing of physical assets could significantly reduce their value, ultimately affecting the amount available for distribution to depositors.

According to him, buildings left unoccupied for extended periods depreciate, while equipment deteriorates and outstanding loans become increasingly difficult to recover.

See also  Royal rumble: Inside power struggle rocking Oyo Obas’ council

“Every delay slows payment to depositors,” he warned.

Theophilus explained that the Asset Management Department was responsible for managing the loans, physical assets and investments of closed deposit money banks, primary mortgage banks and microfinance banks.

He said the department was mandated to recover outstanding loans, dispose of properties and investments, and convert recovered assets into cash to settle uninsured depositors.

He stressed that the corporation’s ability to compensate depositors whose balances exceeded the insured limits depended largely on the success of these recovery efforts.

The director explained that depositors of deposit money banks, non-interest banks and mobile money operators were insured up to N5m per depositor per bank, while those of microfinance banks, primary mortgage banks and payment service banks were covered up to N2m.

He said the existing coverage fully protected approximately 99 per cent of depositors, but customers with balances above the insured limits depended on liquidation dividends for the recovery of their outstanding funds.

“For them, the insured payment is only the first instalment. The balance — the uninsured deposit — can only be paid as liquidation dividend, from the proceeds of the assets we are able to realise and the loans we are able to recover,” he explained.

Theophilus disclosed that the corporation conducted public auctions through competitive sealed bidding on November 3 and 4, 2026, to dispose of physical assets belonging to three banks in liquidation.

He identified the institutions as Union Homes Savings and Loans, Heritage Bank, and Resort Savings and Loans, adding that the auctions took place in Lagos, Taraba and Adamawa states.

See also  TCN refutes Kaduna Electric’s claim on Jos power supply

He said the exercises were coordinated by the Asset Management Department and executed by appointed auctioneers.

The director also cautioned against excessive recovery costs, stressing that expenses incurred in recovering debts must not outweigh the value of recovered assets.

“If it costs us N10m to recover N8m, the depositor has lost. We must be disciplined about costs, timelines and reporting,” he said.

He further warned professionals engaged in asset recovery against insider dealing, deliberate undervaluation, collusion with buyers and diversion of proceeds.

“The Corporation has zero tolerance for insider dealing, under-valuation, collusion with buyers, diversion of proceeds, or any conduct that short-changes depositors,” he declared.

Theophilus announced that the NDIC was developing a comprehensive Asset Management Policy to strengthen asset identification, documentation, valuation, disposal procedures and accountability in recoveries.

He said the corporation would also deepen collaboration with auctioneers, valuers, sales agents, surveyors and other professionals to improve loan recoveries and accelerate the settlement of depositors’ claims.

The director explained that the Abuja workshop formed part of three stakeholder seminars scheduled for Abuja, Enugu and Lagos, aimed at identifying operational challenges, strengthening professional relationships and improving asset recovery outcomes.

He maintained that successful collaboration would ultimately benefit depositors awaiting payment following the collapse of their banks.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending