Deposit Insurance Corporation Warns Against Insider Abuse

The Nigeria Deposit Insurance Corporation (NDIC) has called for stricter ethical conduct and deeper collaboration with the Nigerian Institution of Estate Surveyors and Valuers (NIESV), warning that insider abuse and compromised valuation practices pose risks to depositor protection and the stability of the financial system.

The managing director and chief executive of the NDIC,  Thompson Oludare Sunday, issued the warning during a courtesy call by the president and chairman of the Council of NIESV, Dr ESV. Victor Adekunle Alonge, and members of his executive team at the Corporation’s headquarters in Abuja.

The NDIC MD stressed that the liquidation of failed banks depends heavily on accurate, credible, and professionally prepared valuation reports, making the role of NIESV members indispensable to determining the true worth of assets before disposal. He cautioned that lapses, unethical conduct, or insider influence during valuation could directly undermine efforts to safeguard depositor funds.

“The Corporation relies on precise and credible valuation reports during the liquidation of failed banks to determine the true worth of assets, which enables their sale at the best possible value. Proceeds from these assets are applied toward the payment of depositors’ balances above the insured amount, making accuracy and professionalism in valuation essential to protecting depositor funds.”

The NDIC chief executive noted that unprofessional valuation practices not only distort asset recovery but also weaken public confidence in the banking system. He emphasised that NIESV’s work “contributes directly to financial stability and depositor protection by ensuring transparency, fairness, and value-for-money in the disposal of assets and the recovery process.”

To strengthen accountability, Sunday revealed that the Corporation is enhancing its internal frameworks, including the development of a comprehensive Asset Management Policy to guide asset identification and documentation, valuation processes, disposal strategies, and overall transparency in recoveries. He described the policy as part of NDIC’s broader reforms aimed at tightening controls and improving liquidation outcomes.

He further called for deeper collaboration between both institutions, particularly in knowledge sharing and capacity building. “The Corporation welcomes opportunities for joint training and knowledge exchange between NDIC staff and NIESV professionals, particularly in emerging valuation methodologies, asset management, and sustainable valuation practices,” he stated.

On his part, NIESV president, Dr. Alonge, reaffirmed the Institution’s commitment to ethical standards and professional excellence, noting that an Act of Parliament established the body and maintains strict disciplinary procedures to sanction erring members. He assured the Corporation of sustained cooperation and technical support.

He said the partnership with NDIC “remains vital to enhancing service delivery and strengthening public confidence in the banking system,” adding that the Institution stands ready to deepen its engagement on valuation and asset management for failed banks.