By Sam Akpe, PhD
Two and a half emotional outbursts are likely to erupt anytime Farouk Bello Bunza is hurt.
First, his voice will rise in protest. Second, his facial expression will experience a contortion. Third, which is in half, because it hardly happens: he may bang the table—just to make a point or emphasise a frustration. We all do!
The three reactions were on display the last time I met Farouk—a former banker, ex-senator, and a practicing real estate developer.
For someone with a trimmed physique, topped with a face that resembles a healthy-looking bitter kola, Farouk was not the peaceful, smiling gentleman I used to know.
The worry
His worry is that an unknown person, or a group, is deliberately manipulating a seemingly helpless government agency called NDIC —Nigerian Deposit Insurance Corporation —to deprive him of a property that is statutorily his.
The former senator is crying against being afflicted by what Karl Vick once called ‘unqualified absence of morality by people he can hardly identify’.
Anytime he takes a look at the documents he signed and the amount he has paid, he wonders what kind of country Nigeria is.
The esteemed banker had entered two signed agreements over legitimate transactions —purchase of landed properties —and generated the required financial resources to meet his side of the obligation, only to be told at the end that what he paid for would no longer be his. No reasons given.
How it all began
It all started on January 26, 2023 when Farouk and the defunct Heritage Bank signed an agreement for the purchase of a parcel of land measuring 5,388.019 square meters at the Banana Island, in Lagos.
This was a property owned by the bank based on a certificate of occupancy issued on April 13, 2003, and registered at the Federal Lands Registry in Ikoyi. The property originally belonged to a debtor who could not discharge his obligations to the bank.
In the agreement, Farouk, called the Purchaser, was to pay N4.5 billion to Heritage Bank, referred to as the Vendor within a stipulated time.
The agreement states that the sale was “free from any encumbrances all of the Vendor’s title, rights, claims, privileges and interest in the Property.”
In addition, Farouk had also paid N900 million to the bank for another property in Abuja located in Wuse 2, before the collapse of Heritage Bank and was given all the title documents pertaining to it, although he was yet to take possession, because of a pending litigation on the property.
Shortly after the collapse of Heritage Bank, Farouk wrote to the NDIC, which had statutorily taken over the assets and liabilities of the collapsed bank.
In the letter dated 5th June, 2024, he drew the attention of the Corporation to the two transactions and attached all the required documents.
The Purchaser appealed to NDIC as the liquidator and receiver manager of the collapsed bank “to protect all my rights and privileges as contained in the Contract of Sale executed between Heritage Bank and my humble self.”
It took NDIC more than two months to study the letter and investigate the claims before responding on 21st August, 2024. It confirmed Farouk’s right to the Abuja landed property, “having completed payment and executed a contract of sales with the defunct Heritage Bank before the revocation of its license.”
However, regarding the Banana Island property, the Corporation reviewed the cost from N4.5 billion to what it described as “the current market value” of N14. 550 billion.
That signalled the beginning of trouble for both parties. Farouk was ordered to pay the full amount within six months.
The senator was informed that if he failed to pay the balance within the stipulated time, his earlier payment would be refunded, “and the property will be offer (sic) to any other interested buyers.”
At this point, Farouk knew that a deliberate plan to hijack the deal, captured in a time-honoured agreement, was in the making. Or as the cliché goes: why change the goal post in the middle of the game! Why should a N4.5 billion property suddenly attract a N14.550 billion price tag?
Responding, Farouk calmly walked the memory lane, by disclosing that prior to the sale of the property, he was informed that the bank had conducted a valuation, and that he also appointed valuation specialists to assess the property. The report of the evaluations was made available to the NDIC.
Farouk disclosed in a letter dated 27 August, 2024, that it was based on these valuations and other considerations, that he made an offer to purchase the property, and that the offer took cognizance of the fact that there was a pending litigation, initiated by the property owners.
The agreement stated that “the Purchaser is aware of this litigation and has decided to purchase the property as is,” an allusion to the fact that no matter the outcome of the case, the Purchaser has accepted the inherent risk.
Farouk urged the NDIC to comply with the terms of the sale agreement, because up till the point when the Corporation took over Heritage Bank after its collapse, he had diligently met his contractual obligations and was ready to pay the balance of the agreed sum.
Apparently awoken to facts by Farouk’s letter, the NDIC, in a letter dated 24 October, 2024, said its action was in line with its statutory functions of reviewing and possibly voiding certain transactions found to have been carried out pre-liquidation, if such were found to be “fraudulent, burdensome or disadvantageous to the depositors of the failed financial institution.”
The Corporation was however quick to clarify the point by telling Farouk that “no fraudulent or criminal element has been found to taint your transaction with the defunct bank”, revealing that its action was based purely on an estimation by a property authority who put the value of the property as at 2023 at N7,005 billion.
The NDIC said the market value of the landed property as of 2024 was double that amount.
However, the letter revealed that “the Corporation has resolved to renegotiate the terms of the contract of sale, by offering to you the property at its original market value of N7,005,000,000.00”
Farouk, in a response letter dated November 19, 2024, declared that it was neither equitable nor legally tenable to retrospectively alter the agreed terms of a transaction conducted and concluded in good faith.
His view was that the sale contract between him and the defunct Heritage Bank was a legally binding agreement, executed in accordance with the law, with no room for alteration, except if there were any breach in execution.
He concluded that “none of the factors under the NDIC Act can justify repudiation, variation, or voiding of any part of the agreement concerning the transaction.
Accordingly, he said any attempt to unilaterally alter the contract is not only unfair, but also undermining to the sanctity of contracts and investor confidence, and the very essence of the Corporation’s existence.
On receipt of the letter, Farouk was immediately invited by the NDIC for a meeting on November 22, 2024.
Arising from that meeting, the NDIC, on 5 December, 2024 wrote to Farouk assuring him that having ratified his contract of purchase, it would pursue to a logical conclusion, the court case involving the Abuja property in which the debtor had challenged the bank’s right of sale.
A twist in the tale
Farouk’s smile suddenly turned to a frown when he read the next paragraph of the letter, stating that, “after careful consideration, the Corporation regrets to inform you that it cannot ratify the contract of sale for the Lagos property after considering the interest of depositors.”
The disagreement was on the bank’s offer price of N4.5 billion, as against NDIC’s valuation and reviewed sale price of N7. 005 billion.
The Corporation told Farouk to either accept the reviewed cost within seven days, or have his deposit refunded without further delay. It said nothing about the signed contract with the defunct Heritage Bank.
It was becoming clearer that what started as a genuine mutually benefitting business transaction between Heritage Bank and Senator Farouk was taking a completely different twist to the disadvantage of the Purchaser.
Though alarmed, Farouk refused to give up. On 9 December, 2024, he informed the Corporation that he was getting frustrated by their feet dragging and apparent lack of commitment to resolve the matter.
He saw the entire drama as an attempt to discourage him out of the deal. NDIC seemed to be dancing to beats by a secret drummer.
The seasoned banker felt that NDIC’s position, cited in previous letters, constituted a questionable decision to deny him his incontrovertible rights as contained in the Contractual Sale Agreement he had executed with the defunct Heritage Bank, a verdict he described as “unjust, unfair and untenable.”
His argument remains that his transaction with the now rested Heritage Bank does not fall within the category of transactions that can be voided by NDIC under existing banking laws, because no fraudulent or criminal intention had been traced to the transaction, before and after, as affirmed by NDIC itself.
He reminded them that both himself and the collapsed bank management arrived at the N4.5 billion sale-figure based on the encumbrances on the property by a pending legal petition.
In his view, as a standard practice, properties burdened by litigations are usually sold at a Forced Sale Value price to reflect the associated risks and uncertainties to the buyer, because it is the buyer that must assume financial and legal obligations of the litigation.
He told the Corporation that having diligently met all contractual obligations contained in the sale agreement before the dissolution of Heritage Bank as confirmed by NDIC, “I will therefore appeal once again that the Contractual Agreement be upheld.”
Logically pushed to the wall, NDIC went silent for a while. On September 23, this year, it told Farouk that the sale price of the property was now reviewed to N4.760 billion.
Farouk was given a Deed of Undertaking to sign authorising the Corporation to have recourse to funds in his account, in line with standard practice.
It was now left for Farouk to either accept the arrangements with the marginal increase, or risk losing out completely.
Everything, however, pointed to the fact that NDIC was vigorously searching for and without much disguise, exploiting every opening to terminate the sale contract.
Attempt to close the deal and another twist
Farouk decided to close the deal, in spite of the financial inconveniences.
Quickly, he contacted and authorised Coronation Merchant Bank Limited to raise a loan of N2.148 billion —being balance of the total amount —and pay NDIC for the property.
He informed the Corporation of this decision in a letter dated 12th November, 2025.
In its due diligence effort, Coronation Merchant Bank contacted NDIC on 13th November, 2025, to confirm its readiness to facilitate the completion of payment through real estate financing facility on one condition, “that the original title documents and any other related property documents shall be immediately released on the receipt of the payment.”
On 18 November, NDIC wrote to Coronation Merchant Bank confirming that the property at Banana Island in Lagos was offered to Farouk at N4,760 billion and that Farouk had made payment, “leaving a balance of N2,148,888,888.91.”
The Corporation went further in the next paragraph of its letter to make a commitment: “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.”
On 20th November, 2025, the merchant bank, on the strength of the commitment transferred the stated amount to the Corporation.
Exactly 24 hours after the money hit its account, NDIC reacted. In a letter dated 21 November, 2025, the Corporation retracted its promise to release the required documents.
It stated unequivocally, “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.”
It continued, “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. Please be guided accordingly.”
Perhaps, the Corporation was so much in a hurry to reverse itself that it forgot that its letter of commitment was written on 18th and not 14th November 2025, But the date notwithstanding, the ripple had already been created.
Who’s drumming for NDIC to dance?
Why is NDIC reversing itself on the issue? Who is arm-twisting the Corporation? Or is it acting on its own? Several questions are begging for answers!
Sources at the NDIC revealed that the Corporation has been shopping for excuses to ensure that Farouk does not take possession of the property even after full payment.
They have even presented a position suggesting that Farouk did not meet the November 28, 2025 deadline for acceptance to the Deed of Undertaking.
That again cannot be true, because Farouk’s letter to the NDIC accepting the Deed of Undertaking, dated November 28, 2025, was received the same day by the Corporation. This writer sighted the acknowledged copy of the letter. This therefore defeats the argument.
Perhaps, the only option left for Farouk now is to approach a court of competent jurisdiction for the enforcement of his rights to the property.
Unconfirmed sources hinted that the payment by the merchant bank has since been refunded by NDIC.
The unanswered question is: is NDIC acting on its own or is someone with powerful connection or a group of persons with a bigger interest in the property secretly beating the drums the Corporation is dancing to naked in the public?
Definitely, the last may not have been heard on this issue, yet. Farouk has vowed to use the law, as it is written, to ensure that justice is done.
Akpe, a journalist, writes from Abuja
