NDIC Strengthened to Hold Bank Failure Culprits Accountable – MD
The Nigeria Deposit Insurance Corporation (NDIC) is now better positioned to prosecute individuals responsible for bank failures, thanks to stronger legal provisions, the Corporation’s Managing Director, Mr. Thompson Oludare Sunday, has said.
Speaking during a courtesy visit by the President and Council of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Mr. Chimezie Victor Ihekweazu (SAN), Sunday noted that past legal gaps allowed some offenders to evade accountability, but recent legislative reforms have significantly changed the landscape.
“The enhanced powers granted to the Corporation under the NDIC Act No. 30 of 2023, the Banks and Other Financial Institutions Act (BOFIA) 2020, and the judiciary’s improved understanding of deposit insurance law have made it impossible for individuals to hide under the law to escape liability,” Sunday said.
He added that the Corporation now operates under stronger and more effective laws to carry out its bank liquidation mandate, a development that has prompted some individuals to settle out of court, not solely because they have been caught, but because they recognize the tightening legal net.
The NDIC boss highlighted the positive impact of the strengthened legal framework, citing the Corporation’s ability to realise sufficient assets to declare a first round of liquidation dividends to uninsured depositors of the defunct Heritage Bank Limited within one year of license revocation.
Sunday expressed gratitude to the National Assembly for addressing long-standing legal limitations and commended the judiciary for its growing expertise in deposit insurance matters, which has facilitated the effective adjudication of failed bank cases and delivered relief to depositors.
In his remarks, BRIPAN President Ihekweazu praised the association’s work in harmonizing insolvency-related laws into a unified framework, noting that it has addressed gaps in business recovery practices while offering viable solutions for solvency resolution. He also emphasized the need for continued collaboration with the NDIC to strengthen insolvency and business recovery systems in Nigeria.
The NDIC chief reiterated that the Corporation will continue leveraging the enhanced laws and partnering with stakeholders such as BRIPAN to ensure effective execution of its mandate.
