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The Nigeria Deposit Insurance Corporation (NDIC) has explained why it revoked the house sale contract involving Senator Farouk Bello Bunza, stressing that the decision was strictly due to his non-compliance with the terms and conditions of the offer and not linked to politics, discrimination or the absence of a title document.
Speaking at a media briefing in Abuja, NDIC Managing Director, Mr. Thompson Oludare Sunday, explained that the property was sold on an “as is” basis, a condition explicitly communicated to the buyer at the time of the offer.
“When you buy a property as is, you take it with all its defects,” Sunday said. “It is similar to buying at an auction. You cannot complain afterwards about defects that were disclosed from the beginning.”
He further explained that the Banana Island property, located at Plot 55, Federal Government Layout, Ikoyi, belonged to a debtor of the failed Heritage Bank under an equitable mortgage arrangement. This meant that the title document had never been perfected or handed over to the bank before NDIC assumed control.
“In this case, the title document was not among the assets taken over by the NDIC. Our examiners only record what they physically meet when we assume control of a failed bank. We cannot release a title document we do not have,” he added.
The fundamental reason for the contract revocation, Sunday emphasized, was Senator Bunza’s failure to meet the terms of the offer within the stipulated timeline, which automatically terminated the agreement.
“The issue is not title. We have sold properties without title before. The real issue is the outstanding sum. Nobody prevented him from paying. If the conditions stipulated had been fulfilled and payment completed, this matter would not have arisen,” he said.
According to the NDIC boss, Senator Bunza requested a 36-month repayment period, which was rejected by the Corporation in favour of a six-month schedule.
“We cannot tell depositors to wait three years for their money. Our duty is to recover assets quickly and pay depositors. That is why the 36-month proposal was unacceptable,” Sunday explained.
Addressing claims that the property was being resold to a politically connected individual from the South-West, he dismissed the allegation as baseless.
“NDIC advertises its properties openly. Anyone from any part of the country can buy. If we intended to sell to a preferred buyer, we would not have offered it to him in the first place,” he said.
Sunday also disclosed that a prior letter suggesting the release of the title document upon payment was authored by junior staff without proper authorisation and was promptly nullified.
“That letter was outside the powers of those officers and contrary to the NDIC Act. Internal disciplinary processes were immediately initiated,” he added.
The Managing Director further highlighted that Senator Bunza had successfully completed transactions on another NDIC property, underscoring the absence of bias or discrimination.
“He bought two properties. One was concluded and he has taken possession. This clearly shows there was no victimisation,” he said.
While affirming Senator Bunza’s right to seek legal redress, Sunday reiterated that NDIC remains committed to realising assets in the best interests of depositors and other creditors. The property will be advertised for open bidding, giving the senator the opportunity to participate alongside other prospective buyers.
“Our responsibility is to the law and to depositors. We cannot bend the rules or create documents that do not exist,” he stressed.
The briefing also provided clarity on the aborted sale of the prime property, originally priced at ₦4.5 billion and offered by Heritage Bank in January 2024, five months before the bank’s licence was revoked by the Central Bank of Nigeria. By the time of the NDIC takeover in June 2024, about ₦833.3 million had been paid by the senator.
Following a statutory review of all contracts of the failed bank, NDIC discovered that the original sale terms were unfair and prejudicial to stakeholders, particularly because the property was a mortgaged asset tied to a debtor with outstanding liabilities of about ₦35.79 billion.
A fresh valuation conducted in January 2024 placed the property’s worth at ₦7.005 billion. NDIC subsequently re-offered it to Senator Bunza at this price, taking into account his prior payments. The senator, however, insisted on the original terms, which were no longer acceptable.
A subsequent downward revaluation to ₦4.76 billion, influenced by land reclamation activities that diminished the beachfront value, came with strict conditions, including formal acceptance, execution of a deed of undertaking, and a clearly defined payment schedule.
“Despite making a substantial instalment payment, Senator Bunza failed to formally accept the offer or comply with other mandatory conditions, leading to the automatic termination of the contract under its terms,” Sunday said.
He confirmed that all monies paid by the senator, totaling over ₦2.6 billion, would be refunded.
Sunday emphasized that NDIC acted fully within the provisions of the NDIC Act and other enabling laws, noting that the Corporation’s asset disposal process is open, professionally driven, and designed to maximise value for depositors and creditors of failed banks.
He explained that the media briefing was convened to address public misconceptions and clarify the circumstances surrounding the property transaction.
“Transparency and integrity guide our actions. Our duty is to depositors and the law. We cannot compromise due process or bend rules to accommodate individual interests,” he concluded.
The NDIC Managing Director’s comments underscore the Corporation’s firm commitment to procedural fairness, the protection of depositors’ funds, and the integrity of asset recovery processes, reiterating that legal frameworks and contractual compliance remain central to all its transactions.
