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The Nigeria Deposit Insurance Corporation (NDIC) is now operating with stronger laws to tackle bank failures and bring those responsible to justice.
According to NDIC’s Managing Director, Thompson Oludare Sunday, the Corporation’s powers have been boosted by the NDIC Act No. 30 of 2023 and the Banks and Other Financial Institutions Act (BOFIA) 2020.
With these new laws, the NDIC can now effectively prosecute parties at fault for bank failures, unlike in the past when weak legal provisions allowed individuals to evade accountability.
The NDIC boss praised the National Assembly for strengthening the legal framework and the judiciary for its growing expertise in deposit insurance law.
He noted that the new laws have made it impossible for individuals to hide under the law to escape liability, with many now approaching the Corporation to settle out of court.
He cited the example of the defunct Heritage Bank Limited, where the NDIC was able to declare a first round of liquidation dividends to uninsured depositors within one year of the bank’s license revocation.
The Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) also emphasized the importance of collaboration among stakeholders to strengthen insolvency and business recovery practices in Nigeria.
BRIPAN President, Chimezie Victor Ihekweazu, highlighted the association’s efforts in harmonizing insolvency-related laws and called for further collaboration with the NDIC to enhance capacity building.
Photo Caption:
Managing Director/CE, Nigeria Deposit Insurance Corporation (NDIC), Thompson Oludare Sunday (right) presenting Deposit Insurance research publications to the President/Chairman of Council, Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Chimezie Ihekweazu (SAN) during the latter’s courtesy visit to him the NDIC’s Head Office in Abuja.
