The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday, has announced that the Corporation now operates under a stronger and more effective legal framework to execute its bank liquidation mandate.
Mr. Sunday disclosed this when he received the President and Chairman of Council of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Mr. Chimezie Victor Ihekweazu (SAN), and members of his council during a courtesy visit to the NDIC Headquarters in Abuja.
According to the NDIC Chief Executive, the Corporation’s authority in liquidating failed insured institutions has been significantly reinforced with the enactment of the NDIC Act No. 30 of 2023, alongside the Banks and Other Financial Institutions Act (BOFIA) 2020.
He explained that the new legislation empowers the Corporation to prosecute those responsible for bank failures, correcting a long-standing gap that previously allowed such individuals to evade accountability.
Mr. Sunday expressed appreciation to the National Assembly for addressing the historical challenge of a weak legal framework that had hindered the NDIC’s operations.
He also commended the judiciary for its growing expertise in deposit insurance law and practice, which has led to more effective adjudication of failed bank cases and relief for depositors.
“The enhanced powers granted to the Corporation under the NDIC Act 30 of 2023, the BOFIA 2020, and the improved understanding of the judiciary have made it impossible for individuals to hide under the law to escape liability,” Mr. Sunday stated.
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“With stronger legal backing, individuals now approach the Corporation to settle out of court—not necessarily because the law has caught up with them, but because they can see that the noose is tightening around those responsible for bank failures.”
He credited the Corporation’s ability to realise sufficient assets to declare a first round of liquidation dividends to uninsured depositors of the defunct Heritage Bank Limited within one year of its licence revocation to the impact of the strengthened legal framework.
Mr. Sunday reaffirmed that the NDIC would continue to leverage the improved laws while collaborating with BRIPAN and other stakeholders to ensure effective delivery of its mandate.
Harmonising insolvency-related laws
In his remarks, BRIPAN President and Chairman of Council, Mr. Chimezie Victor Ihekweazu (SAN), outlined the association’s efforts in harmonising insolvency-related laws into a unified framework.
He said this development has addressed the challenges of ineffective insolvency and business recovery practices while creating more viable options for corporate solvency resolution.
Mr. Ihekweazu also emphasised BRIPAN’s commitment to capacity building and called for stronger collaboration between the NDIC and his association.
He urged all stakeholders to work more closely together to strengthen insolvency and business recovery practices across Nigeria.