The Nigeria Deposit Insurance Corporation (NDIC) has explained why it revoked the sale of a N4.76 billion beachfront property at Plot 55, Federal Government Layout, Banana Island, Lagos, initially purchased by Senator Farouk Bello Bunza.
He represented Kebbi Central senatorial district between 2003 and 2007.
In a statement on Monday, the NDIC said the purchase agreement between Senator Bunza and the defunct Heritage Bank in January 2024 was reassessed after the bank’s closure.
‘The agreed sales price of the property was ₦4.5 billion, payable over 36 months. At the time the bank was closed, a total of ₦833 million had been paid’, the NDIC said.
Following the revocation of Heritage Bank’s license by the Central Bank of Nigeria on 3 June, 2024, NDIC conducted a comprehensive review of all contracts under its statutory powers. The Corporation said it found the original terms ‘unfair and prejudicial to the interests of stakeholders’, noting that the property was a mortgaged asset with substantial outstanding debts totaling ₦35.79 billion.
The NDIC added that, despite failed legal challenges by the debtor at lower courts, there remained a likelihood of future appeals, prompting a reassessment of the property’s value, which was revised to ₦7.005 billion.
‘Taking into account Senator Bunza’s prior payments, the property was re-offered to him at the revised price instead of rescinding the contract outright’, the statement said. ‘Senator Bunza rejected this and requested the original terms be upheld’.
Senator Bunza, who represented Kebbi Central from 2003 to 2007, stated that he had paid N2.5 billion of the agreed N4.76 billion as of 18 November 2025. NDIC had previously acknowledged this in a letter dated 18 November 2025, and committed to releasing the title documents upon payment of the balance. However, NDIC later insisted on the revised agreement.
In revoking the sale, the Corporation said, ‘Senator Bunza’s failure to fulfill the conditions of the revised offer, specifically to formally accept and execute the Deed of Undertaking within seven days from 30 September, 2025, constituted a fundamental breach, rendering the offer automatically terminated’.
NDIC confirmed that the sum of ₦2,611,111,111.09 previously deposited by Senator Bunza will be refunded upon submission of his account details.
Senator Bunza, however, maintains that the sale cannot be revoked after payments have been made.
