Our Laws Now Stronger, More Effective to Prosecute Parties at Fault in Bank Failure – NDIC Boss

The Managing Director/Chief Executive (MD/CE) of the Nigeria Deposit Insurance
Corporation (NDIC), Mr. Thompson Oludare Sunday, has stated that the
Corporation now operates under stronger and more effective laws to carry out its
bank liquidation mandate.
Mr. Sunday made this known when he received the President/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.
According to the NDIC Chief Executive, the Corporation’s powers in the area of
the liquidation of failed insured institutions have been significantly enhanced with
the enactment of the NDIC Act No. 30 of 2023, together with the Banks and
Other Financial Institutions Act (BOFIA) 2020. He noted that the NDIC is now
better positioned to prosecute parties at fault for bank failures, unlike in the past
when insufficient legal provisions allowed such individuals to evade accountability.
Mr. Sunday expressed his appreciation to the National Assembly for addressing
the long-standing challenge of a weak legal framework that had constrained the
Corporation’s operations. He also commended the judiciary for its growing
expertise in deposit insurance law and practice, as demonstrated by the effective
adjudication of failed bank cases through judgments that have brought relief to
depositors.
“The enhanced powers granted to the Corporation under the NDIC Act 30 of
2023, the BOFIA 2020 and the improved understanding of the judiciary, have
made it impossible for individuals to hide under the law to escape liability,” the
NDIC Boss stated. “With stronger legal backing, individuals now approach the
Corporation to settle out of court, not necessarily because the law has caught up
with them, but because they can see that the noose is tightening around those
responsible for bank failures.”
Mr. Sunday attributed the Corporation’s ability to realise sufficient assets to
declare a first round of liquidation dividends to the uninsured depositors of defunct
Heritage bank Limited within one year of the revocation of its licence, to the
positive impact of the new legal framework. He reiterated that the NDIC would
continue to leverage the strengthened laws while collaborating with BRIPAN and
other stakeholders to enhance the effective discharge of its mandate.

In his remarks, the BRIPAN President/Chairman of Council, Mr. Chimezie Victor
Ihekweazu (SAN), highlighted the association’s efforts and achievement in
harmonising all insolvency-related laws in the country into a unified framework. He
noted that this has significantly addressed the challenges of ineffective insolvency
and business recovery practices, while introducing more viable options for
solvency resolution.
He also emphasized BRIPAN’s strong focus on capacity building, calling for
further collaboration between the Corporation and his association. Mr. Ihekweazu
called for closer collaboration among stakeholders, to strengthen insolvency and
business recovery practices in Nigeria.

Hawwau Gambo
Head, Communication & Public Affairs Department.
9 th November, 2025
www.ndic.gov.ng