NDIC Gets Teeth: New Laws Empower Prosecution of Bank Failure Culprits
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
By Godson Ikoro
The Nigeria Deposit Insurance Corporation (NDIC) now has stronger laws to prosecute parties responsible for bank failures, according to its Managing Director, Mr. Thompson Oludare Sunday.
The NDIC Act No. 30 of 2023 and the Banks and Other Financial Institutions Act (BOFIA) 2020 have enhanced the Corporation’s powers in liquidating failed insured institutions.
Mr. Sunday stated this during a courtesy visit by the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) to the NDIC Headquarters in Abuja. He appreciated the National Assembly for addressing the weak legal framework and commended the judiciary for its growing expertise in deposit insurance law.
The NDIC has already seen positive results, declaring a first round of liquidation dividends to uninsured depositors of defunct Heritage Bank Limited within a year of its licence revocation. Mr. Sunday attributed this to the new legal framework, which has made it harder for individuals to evade accountability.
BRIPAN President, Mr. Chimezie Victor Ihekweazu (SAN), highlighted his association’s efforts in harmonising insolvency-related laws and called for closer collaboration among stakeholders to strengthen insolvency and business recovery practices in Nigeria.
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