NDIC Now Operating With Stronger Legal Powers — MD

By Oluwakemi Kindness

The Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Thompson Oludare Sunday, says the Corporation is now operating under a much stronger legal framework.

The framework empowers it to effectively liquidate failed banks and hold those responsible for their collapse fully accountable.

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

A statement on Sunday by the NDIC, Head, communication, Hawwau Gambo said the enactment of the NDIC Act No. 30 of 2023, alongside the Banks and Other Financial Institutions Act (BOFIA) 2020, has significantly strengthened the Corporation’s powers, especially in prosecuting individuals and entities linked to bank failures.

“The enhanced powers 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 said.

“People now approach the Corporation to settle out of court because they can see the noose tightening.”

He thanked the National Assembly for addressing long-standing gaps in the legal framework that previously weakened the Corporation’s enforcement and recovery efforts.

He also commended the judiciary for its growing expertise in deposit insurance law, which has resulted in judgments that deliver greater relief to depositors.

Sunday noted that the stronger legal backing had already shown tangible results.

He attributed NDIC’s ability to realise sufficient assets and declare a first round of liquidation dividends to uninsured depositors of the defunct Heritage Bank within one year of the licence revocation to the positive impact of the new laws.

He reaffirmed the Corporation’s commitment to leveraging the strengthened legal environment while deepening collaboration with BRIPAN and other stakeholders to enhance the efficiency of Nigeria’s bank liquidation and resolution process.

In his remarks, BRIPAN President/Chairman of Council, Chimezie Victor Ihekweazu (SAN), highlighted the association’s success in harmonising insolvency-related laws into a unified national framework.

This, he said, has improved the effectiveness of business recovery and insolvency practices across the country.

He called for stronger partnerships among stakeholders to further enhance insolvency resolution, capacity building, and the overall stability of the financial system.