Bunza, NDIC ‘clash’ over Banana Island property

A former federal lawmaker, Senator Farouk Bello Bunza, is engaged in a tussle with the Nigeria Deposit Insurance Corporation, NDIC, concerning a property he had entered into a purchase agreement with the now-defunct Heritage Bank. The property is on Plot 55, Zone J, Federal Government Layout, Banana Island Foreshore Estate, Off Onikoyi Road, Ikoyi, Eti-Osa Local […]

A former federal lawmaker, Senator Farouk Bello Bunza, is engaged in a tussle with the Nigeria Deposit Insurance Corporation, NDIC, concerning a property he had entered into a purchase agreement with the now-defunct Heritage Bank.

The property is on Plot 55, Zone J, Federal Government Layout, Banana Island Foreshore Estate, Off Onikoyi Road, Ikoyi, Eti-Osa Local Government Area, Lagos State.

Senator Bunza, while explaining the circumstances that led to the current situation, told newsmen in Abuja that he had met all the requirements to be granted the right over the property, only for the NDIC, which had taken possession of the property due to the revocation of the license of Heritage Bank to renege.

The property, according to documents made available to our correspondent, was put up for sale at an initial sum of N4.5 billion by the defunct Heritage Bank following default in the repayment of a banking facility obtained by one of its debtors.

Documents made available to newsmen in Abuja indicated that out of the agreed sum, Bunza paid N2.5 billion as at November 18, 2025, but the NDIC announced an upward review of the cost of the property as well as the terms of payment contained in the original agreement.

The price was reviewed from N4.5bn and a monthly installment payment of N100 million over a 36-month period, to N4.76 billion with an installment payment of N358.1 million monthly over six months.

Senator Bunza explained that he approached his bankers, Coronation Merchant Bank, which agreed to make the payment on his behalf, and the latter wrote the NDIC on November 12, 2025, to confirm if the said sum was outstanding, upon which it offered to pay the balance.

In a letter dated November 14, which was made available to our correspondent, the NDIC wrote to the bank confirming that the property was offered to Senator Farouk Bello Bunza at the price of N4.7 billion and that, as of that date, the senator had paid the sum of N2.5 billion, leaving a balance of N2.1 billion.

The NDIC in the letter signed by Deputy Directors, Ewuoso A. O, Okosun Patricia, went further to state that “We write to confirm that upon receipt of the balance sum of N2,148,888,888.91 in cleared funds, we will proceed to release the title documents relating to the subject property to you accordingly.”

With that confirmation, Coronation Merchant Bank agreed to facilitate the completion acquisition, and on November 20, 2025, according to another document, transferred the sum of N2,146,888,888.91 to NDIC so that the original title documents and any other related property would be released to the Bank on receipt of the payment.

The NDIC, in a letter dated November 21 to Coronation Merchant Bank, however, retracted its earlier commitment, saying it could no longer accede to the request.

The letter read in part: “Kindly be informed that the Corporation cannot accede to your request for an undertaking to release the original title documents or any related property documents pertaining to the said property as a condition for granting the financing facility to Senator Bunza.

“This correspondence hereby formally retracts our earlier letter on the above subject, dated November 14, 2025, (Appendix 1). Accordingly, you are advised to disregard its contents, as it does not reflect the Corporation’s position on the matter.

Senator Bunza said this has caused him embarrassment as he went through a lot to make the payments, including approaching financial institutions and individuals for facilities at painstaking costs.

He insisted that since he has met his side of the bargain, it is only fair that he should be given all the documents pertaining to the property.

Reacting, the NDIC said while the agreed sales price of the property was N4.5 billion payable over a period of 36 months, only N833 million had been paid in that respect at the time the bank was closed.

The NDIC said the debtor had challenged the sale of the mortgaged properties at the trial court and Court of Appeal unsuccessfully, upon which it undertook a valuation of the property and returned a value of N7 billion instead of the initial N4.5 billion.

The corporation said Senator Bunza, however, rejected the offer, appealing to it to uphold the original terms of the contract.

It went further to explain that “Senator Bunza’s failure to fulfill the conditions of the revised offer, specifically, to formally signify acceptance and execute the Deed of Undertaking within the prescribed seven-day period from September 30, 2025 constituted a fundamental breach, thereby rendering the offer automatically terminated, irrespective of his refusal to accept correspondence from the Corporation and is offering to refund him the sum of N2.1 billion” he had deposited.