NDIC, BRIPAN Deepen Collaboration to Strengthen Insolvency, Business Recovery Framework

Folalumi Alaran in Abuja

The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Sunday, has called for deeper collaboration with the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) to strengthen the nation’s financial stability architecture and promote sound insolvency practice.

Mr. Sunday made the call when the President of BRIPAN, Mr. Chimezie Ihekweazu, led members of the association on a courtesy visit to the NDIC headquarters in Abuja.

Commending the association for its role in harmonising Nigeria’s insolvency laws, the NDIC boss described the achievement as “a significant milestone that has contributed immensely to improving the ease of doing business and corporate governance in the country.”

“Let me first commend BRIPAN for the remarkable work it has done, especially during the last administration, in bringing together all insolvency laws into one coherent framework. That was no small feat, and it has greatly enhanced business confidence in Nigeria,” Sunday said.

He reaffirmed NDIC’s commitment to professionalism and transparency, noting that the Corporation remains a model of ethical and disciplined financial management.

“We are proud of our reputation for ethics and professionalism. It is reassuring that no one has misrepresented the NDIC in your engagements. That shows the strength of our institution and our people,” he stated.

The NDIC Managing Director also emphasized the need for continuous judicial education on financial processes, noting that limited understanding of banking operations had, in the past, created unnecessary bottlenecks in insolvency proceedings.

He said the Corporation has been training members of the judiciary to bridge the knowledge gap and promote a fairer, faster resolution of banking disputes.

“It is easy in Nigeria to use the law to frustrate legitimate banking processes, but that trend is changing. We have invested heavily in judicial training, and we are seeing encouraging results,” Sunday added.

On regulatory enforcement, he revealed that the NDIC has intensified efforts to hold bank executives accountable for the collapse of their institutions, taking advantage of new powers granted under the NDIC Act 2023.

“The new Act gives us broader authority to pierce the corporate veil and hold those truly responsible for failed banks accountable. We are already applying this in ongoing liquidations such as Heritage Bank, whose licence was revoked by the CBN in June 2024,” he disclosed.

Sunday further stated that the Corporation would place greater emphasis on bank resolution — an area often confused with liquidation — explaining that resolution involves managing distressed institutions before they reach insolvency.

He noted that NDIC’s focus would be on proactive interventions that preserve jobs, protect depositors, and stabilize the financial system.

Earlier in his remarks, BRIPAN President, Mr. Ihekweazu, stressed the need for sustained collaboration with NDIC in capacity building, policy development, and law reform.

He said BRIPAN is currently engaging the Federal High Court and the National Judicial Institute on new practice directions and an insolvency bill aimed at strengthening Nigeria’s legal and institutional framework for business recovery.

Ihekweazu also urged NDIC to participate in global insolvency forums, such as the Africa Roundtable on Insolvency and Restructuring and the International Insolvency Conference, which bring together professionals from multiple jurisdictions to share experiences and best practices.

“The NDIC’s participation in these forums would enrich Nigeria’s representation and provide valuable exposure to international standards and emerging trends in insolvency practice,” he said.

He further disclosed plans to integrate NDIC officials into BRIPAN’s technical committees and reform working groups to foster knowledge sharing and policy synergy.

The visit was rounded off with a symbolic presentation from the BRIPAN delegation to the NDIC management team in recognition of the Corporation’s support for institutional reforms in Nigeria’s financial sector.