We now have more powers to prosecute individuals behind bank failures - NDIC
By Seun Ibiyemi
The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday, has said that the Corporation now operates under stronger and more effective laws that empower it to prosecute individuals responsible for bank failures and enhance its bank liquidation mandate.
Mr. 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 on a courtesy visit to the NDIC Headquarters in Abuja.
He explained that the enactment of the NDIC Act No. 30 of 2023, alongside the Banks and Other Financial Institutions Act (BOFIA) 2020, has significantly strengthened the Corporation’s legal framework, closing previous loopholes that allowed culpable individuals to evade accountability.
According to him, “The enhanced powers granted to the Corporation under the NDIC Act 30 of 2023 and BOFIA 2020, coupled with the judiciary’s improved understanding of deposit insurance law, have made it impossible for individuals to hide under the law to escape liability.”
Mr. Sunday commended the National Assembly for addressing long-standing legal weaknesses and praised the judiciary’s growing expertise in adjudicating failed bank cases, which he said has provided relief to depositors.
He noted that the improved legal environment has already yielded positive results, citing the Corporation’s ability to realise sufficient assets to declare a first round of liquidation dividends to the uninsured depositors of the defunct Heritage Bank Limited within a year of its licence revocation.
The NDIC boss emphasised that the Corporation would continue leveraging the strengthened legal framework while deepening collaboration with stakeholders such as BRIPAN to enhance its effectiveness in protecting depositors and promoting financial system stability.
In his remarks, BRIPAN President, Mr. Chimezie Victor Ihekweazu (SAN), commended the NDIC for its proactive approach and highlighted his association’s achievements in harmonising insolvency-related laws into a unified framework.
He noted that this has improved the effectiveness of insolvency and business recovery practices in Nigeria.
Ihekweazu further called for stronger collaboration between BRIPAN and NDIC to enhance capacity building and strengthen insolvency resolution practices across the financial system.