He made this known while receiving the President and Chairman of the Council of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Mr. Chimezie Ihekweazu (SAN), and members of his council during a courtesy visit to the NDIC headquarters in Abuja.
According to Sunday, the enactment of the NDIC Act No. 30 of 2023 and the Banks and Other Financial Institutions Act (BOFIA) 2020 has empowered the corporation to pursue cases of bank failure more effectively than in the past, when weak legal provisions allowed culprits to evade accountability.
He praised the National Assembly for addressing the long-standing issue of a weak legal framework and commended the judiciary for its improved expertise in deposit insurance law, noting that recent judgments have helped protect depositors’ interests.
“The enhanced powers granted to the corporation under the NDIC Act 30 of 2023, BOFIA 2020, and the judiciary’s better understanding of deposit insurance have made it impossible for individuals to hide under the law to escape liability,” Sunday stated. “With stronger legal backing, many now prefer to settle with the corporation out of court, knowing the law will catch up with them.”
He further highlighted that the improved legal environment has allowed the NDIC to declare the first round of liquidation dividends to uninsured depositors of defunct Heritage Bank Limited within one year of its licence revocation.
Sunday reaffirmed the corporation’s commitment to leveraging these strengthened laws in collaboration with BRIPANand other stakeholders to ensure effective discharge of its mandate.
In his remarks, Mr. Ihekweazu lauded the progress in harmonising insolvency-related laws into a unified framework, which he said has improved Nigeria’s business recovery landscape. He also called for stronger partnerships between NDIC and BRIPAN to promote efficient insolvency and recovery practices nationwide.
