1

The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday, has declared that the Corporation now operates under a far stronger and more effective legal framework, empowering it to execute its bank liquidation mandate with greater efficiency and accountability.

Sunday made this known when he received the President and Chairman of the Council of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Mr. Chimezie Victor Ihekweazu (SAN), and members of his council on a courtesy visit to the NDIC Headquarters in Abuja.

According to the NDIC Chief Executive, the enactment of the NDIC Act No. 30 of 2023, alongside the Banks and Other Financial Institutions Act (BOFIA) 2020, has fundamentally strengthened the Corporation’s powers to liquidate failed insured institutions and prosecute individuals responsible for their collapse.

“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,” Sunday said.

He noted that in the past, weak legal provisions often allowed culpable parties to evade responsibility, but the new legal regime has changed that narrative. “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 added.

He expressed appreciation to the National Assembly for addressing the long-standing challenge of a weak legal framework that had limited the NDIC’s effectiveness in pursuing accountability in the banking sector. 

He also commended the judiciary for its growing expertise in deposit insurance law and practice, which has led to timely and fair adjudication of failed bank cases, bringing relief to affected depositors.

The NDIC boss attributed the Corporation’s success in declaring a first round of liquidation dividends to the uninsured depositors of the defunct Heritage Bank Limited within one year of its licence revocation to the positive impact of the strengthened legal framework. 

He said the Corporation would continue to leverage its new powers while working closely with professional bodies such as BRIPAN to ensure the orderly resolution of failed financial institutions.

“In the case of Heritage Bank, we were able to realise sufficient assets to begin paying uninsured depositors within a year—something that was nearly impossible in previous years. This demonstrates the practical benefits of a strong legal foundation,” Sunday noted.

He emphasised that the Corporation remains committed to transparency and efficiency in the management and liquidation of failed banks, as well as to ensuring that depositors are protected and confidence in the financial system is maintained.

In his remarks, the BRIPAN President, Mr. Ihekweazu, lauded the NDIC for its proactive reforms and strong leadership in strengthening Nigeria’s financial system. He disclosed that BRIPAN had made significant progress in harmonising the country’s insolvency-related laws into a unified framework, which has helped address the challenges of ineffective insolvency and business recovery practices.

According to him, “Our work in harmonising insolvency laws has created a more robust environment for business recovery and financial stability, while introducing new and viable options for solvency resolution.”

Ihekweazu also highlighted BRIPAN’s commitment to capacity building and professional development among insolvency practitioners. He called for greater collaboration between BRIPAN, NDIC, and other relevant stakeholders to deepen reforms in insolvency practice and improve the overall health of Nigeria’s financial and business recovery systems.

“Collaboration remains critical,” he said. “Together, we can strengthen insolvency and business recovery practices in Nigeria to ensure a more resilient financial ecosystem.”

Both leaders agreed that the evolving synergy between the NDIC, BRIPAN, and the judiciary is vital to ensuring that financial institutions are not only well regulated but that failures are managed efficiently, transparently, and in a manner that protects public confidence in the banking system.

With the NDIC now operating under a reinforced legal structure, stakeholders believe the era of prolonged and unresolved bank liquidation cases may finally be drawing to a close.