The Nigeria Deposit Insurance Corporation (NDIC) has announced that recent legislative changes have strengthened its ability to carry out bank liquidations. In a statement from the NDIC’s Head of Communication and Public Affairs, Hawwau Gambo, Managing Director Bello Hassan explained that the enactment of the NDIC Act No. 30 of 2023 has expanded the corporation’s powers to liquidate failed insured institutions. Together with the Banks and Other Financial Institutions Act (BOFIA) 2020, the new law enables the NDIC to prosecute parties responsible for bank failures, addressing a long‑standing weakness in the legal framework that had limited its operations.
Hassan praised the National Assembly for tackling this challenge and commended the judiciary for its growing expertise in deposit‑insurance law and practice. The strengthened legal framework has encouraged more parties to settle out of court, demonstrating the effectiveness of the new provisions. A concrete example of this impact is the NDIC’s ability to realize sufficient assets to declare a first‑round liquidation dividend to the uninsured depositors of the defunct Heritage Bank Limited within one year of the bank’s license revocation.
The enhanced powers will allow the NDIC to better protect depositors and maintain stability in the financial system. The corporation will continue to leverage the strengthened laws while collaborating with stakeholders to discharge its mandate more effectively. With improved legal backing, the NDIC is well‑positioned to address bank failures, hold responsible parties accountable, and reinforce confidence in Nigeria’s banking sector. This development underscores the government’s commitment to strengthening the financial system, protecting depositors, and promoting overall economic stability.
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