The Nigeria Deposit Insurance Corporation (NDIC) is now better equipped to hold those responsible for bank failures accountable, thanks to stronger legal frameworks, according to its Managing Director/Chief Executive (MD/CE), Mr Thompson Oludare Sunday.
In a recent meeting with the President/Chairman of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Mr Chimezie Victor Ihekweazu (SAN), and his council members, Mr Sunday shared that the Corporation’s powers in liquidating failed banks have been significantly enhanced following the enactment of the NDIC Act No. 30 of 2023 and the Banks and Other Financial Institutions Act (BOFIA) 2020.
These new laws have provided the NDIC with the legal backing needed to ensure that individuals responsible for bank failures can no longer evade justice, unlike in the past when gaps in the legal system allowed for such evasion.
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In his statement, Mr Sunday expressed his gratitude to the National Assembly for addressing the long-standing issue of a weak legal framework, which had previously hindered the NDIC’s ability to fully carry out its mandate.
He also commended the judiciary for its growing expertise in handling deposit insurance law, as seen in its effective adjudication of failed bank cases. These judgements have provided much-needed relief to depositors who had been affected by the collapse of their banks.
“With the stronger legal backing provided by the NDIC Act and the BOFIA 2020, it has become impossible for individuals to hide under the law to escape liability,” said Mr. Sunday. “Now, parties responsible for bank failures are approaching the Corporation to settle matters out of court, not because the law has not caught up with them, but because they know they can no longer escape the tightening grip of justice.”
One of the notable achievements of the NDIC, according to Mr Sunday, was the ability to declare the first round of liquidation dividends to the uninsured depositors of defunct Heritage Bank Limited.
This achievement was made possible within just one year of the revocation of the bank’s licence, showcasing the positive impact of the new legal framework.
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The NDIC Chief Executive emphasised the Corporation’s commitment to continuing to leverage these strengthened laws, working alongside BRIPAN and other stakeholders to effectively carry out its mandate of ensuring stability in Nigeria’s banking sector.
In his address, Mr Ihekweazu of BRIPAN highlighted the association’s efforts in harmonising Nigeria’s insolvency-related laws into a unified framework, which has greatly improved insolvency and business recovery practices in the country.
He called for closer collaboration with the NDIC to further strengthen the capacity for insolvency resolution in Nigeria, underscoring
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.
