The Nigeria Deposit Insurance Corporation (NDIC) says its legal framework has been significantly strengthened to enhance its effectiveness in carrying out bank liquidation and deposit protection mandates.
This was disclosed in a statement issued by Hawwau Gambo, NDIC’s Head of Communication and Public Affairs Department, in Abuja on Sunday.
According to Mr. Thompson Sunday, the Corporation’s Managing Director, the enactment of the NDIC Act No. 30 of 2023 and the Banks and Other Financial Institutions Act (BOFIA) 2020 has further empowered the NDIC to execute its responsibilities more efficiently.
He noted that the Corporation now has the authority to prosecute individuals and entities found culpable in bank failures — a development that was difficult in the past due to weak legal provisions.
“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,” Sunday said.
The NDIC boss commended the National Assembly for addressing the long-standing challenge of a weak legal framework that had constrained the Corporation’s operations, and also lauded the judiciary for its growing expertise in deposit insurance law and adjudication of failed bank cases.
He said the impact of the new legal environment was evident in the Corporation’s ability to declare a first round of liquidation dividends to uninsured depositors of the defunct Heritage Bank Limited within one year of its licence revocation.
Sunday reaffirmed NDIC’s commitment to leveraging its strengthened laws while collaborating with relevant stakeholders to ensure effective execution of its deposit insurance and bank liquidation mandate.
