By Babajide Komolafe
The Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday, has declared that a new era of accountability has begun in Nigeria’s banking sector, following the enactment of stronger laws empowering the Corporation to effectively prosecute those responsible for bank failures.
Sunday made this known when he received the President and Chairman of Council of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Mr. Chimezie Victor Ihekweazu (SAN), and members of his council during a courtesy visit to the NDIC Headquarters in Abuja.
According to him, the NDIC Act No. 30 of 2023, alongside the Banks and Other Financial Institutions Act (BOFIA) 2020, has significantly strengthened the Corporation’s powers to liquidate failed insured institutions and hold culpable individuals accountable.
“The enhanced powers granted to the Corporation under the NDIC Act 30 of 2023 and the BOFIA 2020, coupled with the judiciary’s improved understanding of deposit insurance law, have made it impossible for individuals to hide under legal loopholes to escape liability,” Mr. Sunday stated.
He explained that the new legal framework has transformed the operational landscape of the NDIC, enabling it to recover more assets from failed banks and return value to depositors. According to him, individuals who once evaded justice are now approaching the Corporation for out-of-court settlements, recognizing that “the noose is tightening” around those responsible for bank collapses.
Sunday expressed appreciation to the National Assembly for addressing the long-standing gaps that had limited the Corporation’s effectiveness. He also commended the judiciary for its growing expertise in deposit insurance matters, as seen in recent judgments that brought relief to depositors.
Highlighting the impact of the new law, the NDIC boss cited the Corporation’s success in realizing sufficient assets to declare the first round of liquidation dividends to uninsured depositors of the defunct Heritage Bank Limited within one year of its licence revocation — a feat he described as “unprecedented in Nigeria’s banking history.”
He assured that the Corporation would continue to leverage the strengthened legal framework while deepening collaboration with BRIPAN and other stakeholders to promote financial system stability and depositor protection.
In his remarks, BRIPAN President, Mr. Chimezie Victor Ihekweazu (SAN), commended the NDIC for its leadership in strengthening Nigeria’s resolution framework for failed banks. He said BRIPAN had made significant progress in harmonizing insolvency and business recovery laws, thereby enhancing the country’s overall insolvency practice.
He called for greater collaboration among regulators, practitioners, and policymakers to entrench accountability, promote business recovery, and sustain public confidence in the financial system.
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