NDIC has declared a new era of accountability in Nigeria’s banking sector.
NaijaOnPoint Nigeria reports that the Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday, has announced the beginning of a new era of transparency and accountability in Nigeria’s banking industry, following the enactment of stronger legal frameworks empowering the Corporation to prosecute individuals responsible for bank failures.
Mr. Sunday made the statement 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 other members of the association during a courtesy visit to the NDIC Headquarters in Abuja.
He explained that the NDIC Act No. 30 of 2023 and the Banks and Other Financial Institutions Act (BOFIA) 2020 have significantly strengthened the Corporation’s ability to liquidate failed insured banks and ensure that culpable individuals are held accountable.
“The enhanced powers under the NDIC Act 30 of 2023 and BOFIA 2020, combined with the judiciary’s growing understanding of deposit insurance law, have made it difficult for anyone to escape liability through legal loopholes,” Mr. Sunday stated.
He revealed that the new legal framework has revolutionized the NDIC’s operations, allowing for faster asset recovery from failed banks and timely compensation to depositors. According to him, individuals who previously evaded justice are now seeking out-of-court settlements, realizing that “the noose is tightening” on those behind bank collapses.
Mr. Sunday praised the National Assembly for closing legislative gaps that had hindered the Corporation’s efficiency and lauded the judiciary for recent landmark rulings that have strengthened depositor protection.
Highlighting the success of the reforms, he noted that the NDIC had declared the first liquidation dividend to uninsured depositors of the defunct Heritage Bank Limited within one year of its license revocation — an achievement he described as “unprecedented in Nigeria’s banking history.”
He assured that the NDIC would continue to utilize its enhanced legal powers while deepening partnerships with BRIPAN and other key stakeholders to ensure financial stability and depositor protection.
In his remarks, BRIPAN President, Mr. Ihekweazu (SAN), commended the NDIC’s leadership in strengthening Nigeria’s bank resolution framework and emphasized the importance of collaboration among regulators, insolvency practitioners, and policymakers to promote accountability, encourage business recovery, and build public trust in the financial system.