Why we revoked property sale contract with Senator Bunza – NDIC

The decision to terminate the contract for the sale of a property in Lagos to Senator Farouk Bunza was based on his alleged non-compliance with the terms and conditions of the offer, the Nigeria Deposit Insurance Corporation (NDIC) said yesterday. Speaking to journalists in Abuja, the Managing Director of NDIC, Mr Thompson Oludare Sunday, said […]

The decision to terminate the contract for the sale of a property in Lagos to Senator Farouk Bunza was based on his alleged non-compliance with the terms and conditions of the offer, the Nigeria Deposit Insurance Corporation (NDIC) said yesterday.
Speaking to journalists in Abuja, the Managing Director of NDIC, Mr Thompson Oludare Sunday, said the revocation had nothing to do with politics, discrimination or the absence of a title document.
Daily Trust recalled that Senator Bunza had, in November 2025, addressed a press conference where he said he had met all the requirements to be granted rights over the property in contention, only for the NDIC, which had taken possession of the property due to the revocation of the licence of Heritage Bank, to renege.
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.
He said the property 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.
Out of the agreed sum, Bunza said he paid N2.5 billion as of 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.
Speaking yesterday, the NDIC boss said the property was sold on an “as is” basis, a condition clearly communicated to Senator Bunza at the point of offer.
Sunday also dismissed the claim that the NDIC terminated an existing agreement with Senator Bunza in order to favour a certain politician from the South-West.
According to him, the property will be advertised for open bidding, providing Senator Bunza with the opportunity to participate alongside other prospective bidders.
The Managing Director said that Senator Bunza had successfully completed transactions on one other property sold by the NDIC, underscoring the absence of bias or discrimination.
But when contacted yesterday, Senator Bunza said he had paid for the property in full and will not participate in any bid again.
“I am going to court,” he said.
But the NDIC MD said “He (Bunza) bought two properties. One was concluded and he has taken possession. This clearly shows there was no victimisation,” Sunday said.
He said Senator Bunza has the right to seek legal redress, but that the NDIC will remain committed to the realisation of assets in the best interests of depositors and other creditors.
According to him, Senator Bunza entered into a purchase agreement with Heritage Bank in January 2024, five months before the bank’s licence was revoked by the Central Bank of Nigeria.
He also said the property was priced at N4.5 billion, payable over 36 months, of which about N833.3 million had been paid before the bank was taken over by the NDIC in June 2024 following its liquidation.
He said that following a statutory review of all contracts of the failed bank, the Corporation discovered that the terms of the sale were unfair and prejudicial to stakeholders, particularly as the property was a mortgaged asset tied to a debtor with outstanding liabilities of about N35.79 billion.
He said a fresh valuation carried out as of January 2024, when the contract was executed with the failed bank, put the property’s worth at N7.005 billion, prompting the NDIC to re-offer it to Senator Bunza at that price in consideration of his prior payments, rather than immediately rescind the contract.
He said the offer was, however, rejected by the senator, who insisted on the original terms.
He further explained that a subsequent downward revaluation to N4.76 billion was influenced by land reclamation activities that diminished the property’s beachfront value, although the offer came with strict conditions, including formal acceptance, execution of a deed of undertaking and a clearly defined payment schedule.
“Our responsibility is to the law and to depositors. We cannot bend the rules or create documents that do not exist.
“When you buy a property ‘as is’, you take it with all its defects. It is similar to buying at an auction. You cannot complain afterwards about defects that were disclosed from the beginning.”
According to the NDIC boss, the fundamental reason the contract was revoked was Senator Bunza’s failure to fulfil the terms and conditions of the offer within the stipulated timeline, which automatically terminated the contract.
He disclosed that the senator requested a 36-month repayment period, which the NDIC rejected in favour of six months, citing the Corporation’s obligation to depositors of failed banks.
“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,” he said.
He said that an earlier letter suggesting the release of the title document upon payment was written by junior staff without 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.