The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation, Mr. Thompson Oludare Sunday, has announced that Nigeria’s banking sector is entering a “new era of accountability,” following the introduction of stronger laws that empower the Corporation to prosecute individuals responsible for bank failures.
Sunday made the statement while receiving the President and Chairman of Council of the Business Recovery and Insolvency Practitioners Association of Nigeria, Mr. Chimezie Victor Ihekweazu (SAN), along with members of his council, during a courtesy visit to NDIC Headquarters in Abuja.
He noted that the NDIC Act No. 30 of 2023, together with the Banks and Other Financial Institutions Act 2020, has significantly expanded the Corporation’s authority to liquidate failed insured institutions and hold culpable parties accountable.
“The enhanced powers granted to the Corporation under the NDIC Act 30 of 2023 and the BOFIA 2020, coupled with the judiciary’s improved understanding of deposit insurance law, have made it impossible for individuals to hide under legal loopholes to escape liability,” Mr. Sunday stated.
Mr. Sunday explained that the updated legal framework has reshaped NDIC’s operations, allowing the Corporation to recover more assets from collapsed banks and restore value to depositors.
He noted that individuals who previously evaded justice are now approaching the Corporation for out-of-court settlements, acknowledging that “the noose is tightening” around those responsible for bank collapses.
He also expressed gratitude to the National Assembly for addressing long-standing gaps that had limited NDIC’s effectiveness, and commended the judiciary for its growing expertise in deposit insurance matters, citing recent judgments that have provided relief to depositors.
Highlighting the law’s impact, Sunday pointed to NDIC’s success in recovering sufficient assets to declare the first round of liquidation dividends to uninsured depositors of the defunct Heritage Bank Limited within one year of its licence revocation, a milestone he described as “unprecedented in Nigeria’s banking history.”
He affirmed that the Corporation will continue leveraging the strengthened legal framework while deepening collaboration with BRIPAN and other stakeholders to enhance financial system stability and depositor protection.
In his remarks, BRIPAN President Mr. Chimezie Victor Ihekweazu (SAN) praised NDIC for its leadership in strengthening Nigeria’s framework for resolving failed banks.
He added that BRIPAN has made notable progress in harmonizing insolvency and business recovery laws, thereby improving the country’s overall insolvency practice.
He concluded by calling for closer cooperation among regulators, practitioners, and policymakers to reinforce accountability, support business recovery, and maintain public confidence in the financial system.
