The aims of this paper is to appraise the Nigerian Deposit Insurance Corporation (NDIC) liquidation activities in failed banks, claims settlement; amount and number of depositors so far paid; reason behind the abandonment of deposits by some depositors; level of liquidation proceeds realized and how it has been managed fairness of bad debt litigation disposition and the adequacy of the insurance deposit.
To achieve the above objective I relied on questionnaire, personal interviews and visit to the site; for primary data; from past literature, journals and dailies for the secondary data. The statistical tools used in the analysis are the simple percentages, tables, pie charts and bar charts.
The study revealed the following”
1. NDIC has been delaying in settling both the inured and the uninsured depositors, the delay was found to be attributed to:
a. The inadequate preparation by the NDIC in both human and material resources.
b. The inability of the depositors to put forward their claim on time for verification.
2. Rigorous claim filing process adopted by NDIC, lack of proper awareness on the side of depositor were found to be chief reason for the abandonment of claims by depositors.
3. A sizeable amount has been realized from sale of fixed assets, not much from debt recovery.
4. The amount realized has not been managed to the interest of depositors, as some amount were not accounted for, while a huge sum was written off as expense.