The atmosphere at the headquarters of the Nigeria Deposit Insurance Corporation (NDIC) in Abuja carried a tone of renewed confidence as the Managing Director and Chief Executive, Mr. Thompson Oludare Sunday, declared that the Corporation now operates with stronger, more effective legal powers to prosecute those responsible for bank failures.
The NDIC boss made the assertion while hosting 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 Corporation. The meeting underscored the growing collaboration between the two institutions in strengthening Nigeria’s financial and insolvency framework.
Mr. Sunday explained that the enactment of the NDIC Act No. 30 of 2023, coupled with the Banks and Other Financial Institutions Act (BOFIA) 2020, had significantly expanded the Corporation’s powers, particularly in the area of liquidating failed insured institutions.
For years, he noted, the Corporation had operated under a weak legal framework that made it difficult to hold culpable parties accountable for the collapse of financial institutions. Many individuals, he said, exploited those legal loopholes to evade responsibility, often to the detriment of depositors and the stability of the banking system.
But those days, the NDIC chief declared, are gone. With the new legal framework, the Corporation now wields the authority to investigate, prosecute, and recover assets from those whose actions or negligence lead to bank failures.
Mr. Sunday expressed appreciation to the National Assembly for what he described as a “historic intervention” in passing legislation that addressed decades-old legal deficiencies. He also commended the judiciary for its growing expertise in deposit insurance law, which has resulted in landmark judgments that have brought relief to depositors of failed banks.
According to him, the collaboration between the legislature, judiciary, and the NDIC has built a stronger financial safety net, ensuring that offenders can no longer exploit the law to escape justice.
“The enhanced powers granted to the Corporation under the NDIC Act 30 of 2023 and BOFIA 2020 have made it impossible for individuals to hide under the law to escape liability,” Mr. Sunday said. “With stronger legal backing, many now approach us to settle out of court, not necessarily because the law has caught up with them, but because they can see the noose tightening around those responsible for bank failures.”
He pointed out that the results of the reforms were already evident.
Within one year of the revocation of Heritage Bank’s licence, the NDIC was able to realise sufficient assets to declare a first round of liquidation dividends to uninsured depositors — a feat rarely achieved in such a short time frame.
Mr. Sunday described this development as a clear indication that the strengthened laws had given the Corporation both the authority and the agility needed to carry out its liquidation mandate effectively.
He assured that the NDIC would continue to leverage the new legal powers while deepening collaboration with BRIPAN and other professional bodies to enhance the resolution of failed banks and protect depositors’ interests.
On his part, Mr. Chimezie Victor Ihekweazu (SAN), President of BRIPAN, praised the NDIC’s commitment to transparency and accountability, noting that its reform-driven approach aligns with BRIPAN’s mission to professionalize insolvency and business recovery practice in Nigeria.
He disclosed that BRIPAN has made significant progress in harmonising all insolvency-related laws into a single, coherent framework, effectively addressing the long-standing challenges of fragmented and ineffective insolvency practices in the country.
Mr. Ihekweazu also stressed the importance of capacity building within the financial and legal ecosystem. He called for greater synergy between BRIPAN, NDIC, and other regulatory agencies to create a sustainable framework that supports business recovery, protects investments, and strengthens public confidence in the economy.
As both organisations pledged deeper collaboration, the meeting marked a renewed determination to build a more resilient financial system — one that punishes wrongdoing, protects depositors, and upholds integrity within Nigeria’s banking sector.