The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Sunday, has announced that the corporation is now fully equipped with stronger legal powers to effectively carry out its bank liquidation responsibilities.
Speaking during a courtesy visit by the President and Chairman of Council of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Mr. Chimezie Ihekweazu (SAN), and members of his council at the NDIC Headquarters in Abuja, Sunday revealed that recent legislative reforms have fortified the NDIC’s authority in handling failed banks.
According to him, the enactment of the NDIC Act No. 30 of 2023, alongside the Banks and Other Financial Institutions Act (BOFIA) 2020, has significantly enhanced the corporation’s capacity to liquidate failed insured institutions and hold culpable parties accountable.
“In the past, weak legal provisions made it easy for those responsible for bank failures to escape liability,” Sunday noted. “Today, with the backing of stronger laws, such individuals can no longer hide under legal loopholes.”
He expressed appreciation to the National Assembly for resolving long-standing gaps in the legal framework and commended the judiciary for its growing expertise in deposit insurance law. This, he said, has led to fair and timely judgments in failed bank cases, bringing much-needed relief to depositors.
Sunday further explained that the enhanced legal environment has made many parties more willing to engage with the NDIC. “With stronger legal backing, individuals now prefer to settle out of court — not necessarily because the law has caught up with them, but because they recognize that accountability is now unavoidable,” he said.
He also attributed the NDIC’s ability to declare a first round of liquidation dividends to uninsured depositors of the defunct Heritage Bank Limited within one year of its licence revocation to the positive impact of the strengthened legal framework.
Sunday reaffirmed the NDIC’s commitment to leveraging these improved laws while deepening collaboration with BRIPAN and other key stakeholders to ensure the efficient execution of its mandate.
