NDIC gains stronger powers to liquidate failed banks
Nigeria Deposit Insurance Corporation Managing Director Thompson Sunday stated the agency now operates with enhanced legal authority to pursue bank liquidation responsibilities following the 2023 NDIC Act and 2020 Banks and Other Financial Institutions Act during a visit from Business Recovery and Insolvency Practitioners Association of Nigeria leadership at the corporation headquarters in Abuja. Sunday credited the National Assembly for resolving longstanding framework deficiencies that previously allowed individuals responsible for institutional failures to avoid consequences, noting improved judicial understanding has strengthened asset recovery efforts.
The executive highlighted Heritage Bank Limited’s liquidation proceedings as evidence of the updated statutes’ effectiveness, with the corporation declaring initial dividends to uninsured depositors within one year of license revocation. Sunday stated that responsible parties increasingly pursue out-of-court settlements as accountability measures tighten under the revised regulations, with the agency committed to collaborating with professional associations to fulfill its mandate.
