NDIC pushes for stronger partnership with NIESV on valuation of failed bank assets, broader sector reforms

The Nigeria Deposit Insurance Corporation (NDIC) is intensifying efforts to strengthen its collaboration with the Nigerian Institution of Estate Surveyors and Valuers (NIESV) to improve the valuation and management of assets belonging to failed financial institutions across the country. The Corporation said the partnership has become increasingly important as it continues to deal with the complex process of recovering, restructuring, and disposing of assets tied to distressed or liquidated banks.

During a recent engagement with NIESV executives, the NDIC emphasised that accurate and professional valuation is vital to its mandate of safeguarding depositors’ funds and stabilising the financial system. The Corporation noted that many of the assets under its purview — including landed properties, office buildings, residential estates, equipment, and other physical holdings — require expert assessment to ensure transparency, accountability, and fair market pricing during liquidation or restructuring.

NDIC officials explained that resolving failed banks is a multi-layered process. Beyond reimbursing insured depositors, the Corporation must evaluate and manage the assets left behind by the defunct institutions. The proper valuation of these assets, it said, determines the rate of recovery, the amount returned to uninsured depositors, and the pace at which liquidation processes can be concluded. NIESV’s role, therefore, is regarded as critical to ensuring accuracy, professionalism, and alignment with global best practices.

The Corporation stressed that undervaluation or poorly assessed assets could result in significant financial losses, reduce recovery rates, and undermine the broader integrity of the liquidation process. Conversely, thorough and credible valuation boosts investor confidence, supports asset disposal strategies, and enhances the NDIC’s ability to return funds to depositors in a timely manner. The agency highlighted that recent experiences in managing the assets of failed banks showed the need for more structured collaboration between regulatory institutions and professional bodies.

Speaking at the meeting, NDIC leadership called on NIESV to further strengthen its internal controls, uphold strict ethical standards, and ensure that valuers assigned to bank-related projects are well-trained and certified. The Corporation emphasised the need for transparency and diligence, adding that asset valuation in the context of failed banks carries heightened national importance because of its impact on financial stability and public trust.

The NDIC also expressed readiness to work with NIESV on developing a robust framework for continuous capacity building. This would include training workshops, technical sessions, and knowledge-sharing initiatives aimed at improving valuation methodologies, understanding regulatory expectations, and familiarising valuers with the specific dynamics of banking-sector assets. The Corporation noted that valuation in the financial sector often involves specialised knowledge, including distressed asset management, liquidity considerations, and the legal implications of bank failure resolutions.

In addition, the NDIC sought NIESV’s collaboration in areas beyond valuation, including advisory services, handling of complex property disputes, and participation in the documentation and verification of assets under liquidation. According to the Corporation, leveraging the expertise of professionals across various branches of estate surveying will enable more efficient management of the large inventory of assets tied to defunct banks.

Responding on behalf of the institution, NIESV officials welcomed the strengthening of ties with the NDIC and reaffirmed their commitment to upholding the highest professional standards. The institution stated that its members are well-equipped to support government institutions in delivering credible and reliable valuation reports, adding that collaboration with regulators will further reinforce public confidence in the profession.

NIESV also called for the NDIC to adopt more modern valuation technologies and digital tools that can support accuracy and reduce processing time. The institution noted that integrating technology into valuation assignments, especially for large portfolios, could significantly enhance transparency and efficiency. This, they said, would complement the Corporation’s ongoing reforms targeted at improving liquidation procedures.

Both organisations agreed to deepen the partnership through formalised frameworks that will outline clearer roles, responsibilities, and performance benchmarks. The NDIC reiterated that working with certified professionals is essential for protecting the interests of depositors and ensuring that liquidation-related transactions follow due process. The Corporation stressed that public confidence in the financial system is tied to the integrity of institutions and professional bodies involved in the resolution process.

As the NDIC continues its mandate of stabilising Nigeria’s financial sector, enhancing collaboration with bodies like NIESV reflects a broader strategy to build institutional synergy, promote accountability, and strengthen regulatory operations. With several failed banks still undergoing liquidation, the Corporation believes that a stronger partnership will help expedite asset recovery, improve depositor reimbursement timelines, and close out legacy cases more efficiently.

The renewed engagement marks another step in the NDIC’s ongoing efforts to modernise its operations and ensure that the resolution of failed banks is handled with the utmost professionalism, transparency, and alignment with global standards.