NDIC Cancels N4.5bn Banana Island Property Deal Over Contract Breach
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has broken its silence regarding the controversial revocation of a N4.5 billion property sale involving Senator Farouk Bello Bunza.
The Corporation maintains that the termination of the contract was a direct consequence of the buyer’s failure to meet specific terms and conditions rather than any political undercurrents or discriminatory motives.
Addressing journalists in Abuja, the Managing Director of the NDIC, Mr. Thompson Oludare Sunday, clarified that the property, located at Plot 55, Banana Island, Ikoyi, was offered on an “as is” basis. This condition, typical of assets recovered from failed financial institutions, was communicated to the buyer from the onset.
“When you buy a property as is, you take it with all its defects,” Mr. Sunday stated. “It is similar to buying at an auction. You cannot complain afterwards about defects that were disclosed from the beginning.”
The controversy stems from the liquidation of the defunct Heritage Bank. Senator Bunza had initially entered a purchase agreement with the bank in January 2024, months before its license was withdrawn. While the original price was set at N4.5 billion with a 36-month payment plan, a post-liquidation review by the NDIC found the terms lopsided.
A fresh valuation revealed the property was actually worth over N7 billion at the time of the initial contract. Furthermore, the asset was tied to a debtor with liabilities totaling N35.79 billion. Despite these findings, the NDIC attempted to bridge the gap by re-offering the property to the Senator at a revised rate.
“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,” the NDIC boss said.
A significant point of friction was the duration of the repayment. While the Senator sought a three-year window, the NDIC insisted on a six-month limit to facilitate the swift reimbursement of depositors who lost money in the bank’s collapse.
“We cannot tell depositors to wait three years for their money,” Sunday noted. “Our duty is to recover assets quickly and pay depositors. That is why the 36-month proposal was unacceptable.”
The Managing Director also dismissed allegations that the Corporation intended to favor a politically connected individual from the South-West. He pointed out that Senator Bunza had already successfully acquired and taken possession of another property through the NDIC, which he said proves the lack of any personal or regional bias.
“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 added.
The NDIC also addressed a letter previously sent to the Senator which suggested that title documents would be released upon payment. Mr. Sunday revealed that the document was the work of junior staff members acting without the necessary clearance.
“That letter was outside the powers of those officers and contrary to the NDIC Act. Internal disciplinary processes were immediately initiated,” he said.
He explained that the property was held under an equitable mortgage, meaning the original title was never perfected or handed over to the bank. “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 explained.
Following the automatic termination of the contract due to non-compliance with the revised offer and payment schedule, the NDIC confirmed that all payments made by the Senator, totaling over N2.6 billion, will be refunded.
The property is now slated for an open competitive bidding process. The Corporation indicated that Senator Bunza remains eligible to participate in the new auction alongside other members of the public.
“Our responsibility is to the law and to depositors. We cannot bend the rules or create documents that do not exist,” Sunday concluded.
