The Nigeria Deposit Insurance coverage Company (NDIC) says its authorized and regulatory framework has been considerably strengthened to boost its capability to liquidate failed banks and maintain these chargeable for monetary establishment collapses accountable.
In a press release launched on Sunday by Hawwau Gambo, Head of Communication and Public Affairs at NDIC, the Company’s Managing Director, Mr. Thompson Sunday, stated the enactment of the NDIC Act No. 30 of 2023 had fortified the Company’s powers in bank liquidation and backbone processes.
In accordance with him, the current authorized reforms, alongside provisions of the Banks and Different Monetary Establishments Act (BOFIA) 2020, have empowered the NDIC to successfully prosecute events discovered culpable in bank failures.
“The NDIC is now higher positioned to prosecute events at fault in bank failures, not like previously when inadequate authorized provisions allowed such people to evade accountability,” Sunday stated.
New aid to depositors
He counseled the Nationwide Meeting for addressing the long-standing gaps within the authorized framework that had beforehand restricted the Company’s effectiveness, and likewise lauded the judiciary for its rising experience in deposit insurance coverage legislation.
“By way of extra knowledgeable adjudication of failed bank circumstances, judgments are actually bringing actual aid to depositors,” he added.
Highlighting the affect of the stronger framework, Sunday cited the swift liquidation means of Heritage Bank Restricted, noting that “the Company’s means to understand ample belongings to declare a primary spherical of liquidation dividends to the uninsured depositors inside one yr of the revocation of its licence is as a result of optimistic affect of the brand new authorized framework.”
Improve in out-of-court settlements
He revealed that extra people and establishments are actually choosing out-of-court settlements with the NDIC.
“With stronger authorized backing, people now method the Company to settle out of courtroom—not essentially as a result of the legislation has caught up with them, however as a result of they will see that the noose is tightening round these chargeable for bank failures,” he stated.
Sunday reaffirmed the NDIC’s dedication to leveraging its strengthened powers to guard depositors and promote monetary system stability. “The Company will proceed to work with stakeholders to make sure the efficient discharge of its mandate,” he concluded.
What you must know
- In April, NDIC commenced the fee of N46.6 billion as the primary tranche of liquidation dividends to depositors of the defunct Heritage Bank, concentrating on these with account balances above the insured restrict of N5 million.
- In a press release issued on the time, the NDIC stated the fee started on Friday, April 25, 2025, following the restoration of proceeds from the sale of Heritage Bank’s belongings and excellent loans.
- The Company famous that the fee represents a significant step in its ongoing dedication to totally reimburse all depositors affected by the bank’s collapse.
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