Former Senator Accuses NDIC of Bad Faith in Multi-Billion Naira Land Deal
Former lawmaker, Senator Farouk Bellow Bunza, has vowed to pursue legal action against the Nigerian Deposit Insurance Corporation (NDIC), accusing the corporation of intimidation and bad faith in a controversial N4.78 billion land transaction on the prestigious Banana Island in Lagos. The dispute centers on the release of title documents for a prime parcel of land at plot 55, Zone J, Federal Government Layout.
The Core of the Dispute: A Contract and Its Aftermath
Senator Bunza, who represented Kebbi Central between 2003 and 2007, revealed that he had a clear and unambiguous contract with the now-defunct Heritage Bank in 2023 for the purchase of the property. The agreed price was N4.5 billion, with a payment structure of N500 million upon signing and the balance of N4 billion to be paid in 36 equal monthly installments. Bunza fulfilled the initial payment and made three subsequent installments before the Central Bank of Nigeria (CBN) revoked Heritage Bank's licence on June 3, 2024, appointing the NDIC as the Liquidator.
Following its appointment, the NDIC conducted a review and deemed the original contract terms "unfair and prejudicial" to stakeholders' interests. The corporation also cited a loss in the property's market value due to land reclamation activities by the Lagos State government, which obstructed the beachfront view. Consequently, the NDIC made a revised offer to Bunza of N4.76 billion, a significant reduction from a reversed cost of N7 billion, payable under new conditions.
Conflicting Narratives: Payment Made, Acceptance Disputed
The NDIC's offer required the payment of N1.777 billion in 16 installments past due and N2.148 billion in six monthly installments. In a surprising move, Bunza claims he paid the entire N1.77 billion within seven days and the full N2.148 billion within 30 days, far exceeding the corporation's timeline. His payment was facilitated by a loan from Coronation Merchant Bank, after the bank secured an undertaking from the NDIC to release the title documents upon full payment.
However, the NDIC presents a different story. In its official statement, the corporation alleges that Bunza fundamentally breached the terms of the revised offer by failing to formally signify acceptance and execute a Deed of Undertaking within a prescribed seven-day period from September 30, 2025. The NDIC stated that this failure automatically terminated the offer, rendering the sale contract void. The corporation has since rescinded the offer and promised to refund Bunza's total deposit of N2,611,111,111.09.
A Vow for Legal Redress and Allegations of a Moving Target
Senator Bunza has strongly refuted the NDIC's claims, labelling them as a form of intimidation. He insists that he not only made the full payment but also wrote to the corporation to intimate them of the payment and request a meeting, which was acknowledged and held. He accused the NDIC of setting a payment standard it believed he could not meet and then introducing new hurdles after the money was paid.
"Where on earth can such a unilateral action be tolerated?" Bunza questioned. "It is apparent there are other hidden motives by NDIC unknown to the purchaser. He will however legally pursue his right to retain what is legally and validly his after making full payment for the land."
He highlighted the series of obstacles he has faced, including litigation, revaluation, encroachment issues, and now, the sudden unavailability of title documents after full payment was made. Bunza remains determined to seek legal redress to reclaim what he believes is rightfully his.
