The Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation, Mr. Thompson Oludare Sunday, has announced that a new era of accountability has officially begun in Nigeria’s banking sector.

This follows the recent enactment of stronger laws that empower the Corporation to effectively prosecute those responsible for bank failures.

Sunday made this declaration when he received the President and Chairman of Council of the Business Recovery and Insolvency Practitioners Association of Nigeria, Mr. Chimezie Victor Ihekweazu (SAN), and members of his council during a courtesy visit to the NDIC Headquarters in Abuja.

According to Sunday, the NDIC Act No. 30 of 2023, alongside the Banks and Other Financial Institutions Act 2020, has significantly strengthened the Corporation’s powers, enabling it to better liquidate failed insured institutions and hold culpable individuals accountable for their actions.

Sunday elaborated on the impact of the strengthened legal instruments, stating, “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.”

He explained that this new legal framework has transformed the NDIC’s operational landscape, allowing it to recover more assets from failed banks and return greater value to depositors.

Notably, individuals who once evaded justice are now approaching the Corporation for out-of-court settlements, recognizing that “the noose is tightening” around those responsible for bank collapses.

Sunday expressed appreciation to the National Assembly for addressing the long-standing gaps that had limited the Corporation’s effectiveness and commended the judiciary for its growing expertise in deposit insurance matters, as demonstrated in recent judgments that brought relief to depositors.

Highlighting the tangible impact of the new law, the NDIC boss cited the Corporation’s success in realizing 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. He described this feat as “unprecedented in Nigeria’s banking history.”

Sunday assured the visitors that the Corporation would continue to leverage the strengthened legal framework while deepening collaboration with BRIPAN and other stakeholders to promote financial system stability and enhanced depositor protection.

In his remarks, BRIPAN President, Mr. Chimezie Victor Ihekweazu (SAN), commended the NDIC for its leadership in strengthening Nigeria’s resolution framework for failed banks.

He noted that BRIPAN had made significant progress in harmonizing insolvency and business recovery laws, thereby enhancing the country’s overall insolvency practice. Ihekweazu called for greater collaboration among regulators, practitioners, and policymakers to entrench accountability, promote business recovery, and sustain public confidence in the financial system.