The Nigeria Deposit Insurance Corporation (NDIC) has announced a major upgrade in its legal arsenal, enabling it to more aggressively pursue individuals and entities responsible for bank collapses and accelerate relief to affected depositors.
In a statement issued on Sunday, NDIC Managing Director Bello Hassan revealed that the NDIC Act No. 30 of 2023, combined with provisions in the Banks and Other Financial Institutions Act (BOFIA) 2020, has closed long-standing loopholes that previously allowed culpable parties to escape prosecution.
“The new laws have transformed our capacity to hold those at fault accountable,” Hassan said. “Where we once lacked sufficient legal backing, we can now prosecute effectively and secure justice for depositors.”
The NDIC chief pointed to the rapid liquidation of Heritage Bank as proof of the reforms’ impact. Less than a year after the Central Bank of Nigeria revoked its licence, the Corporation recovered enough assets to declare an initial liquidation dividend for uninsured depositors—those with balances exceeding the ₦5 million insured limit.
In April 2025, NDIC began disbursing ₦46.6 billion as the first tranche of payments to these depositors, drawn from proceeds of asset sales and loan recoveries. The speed of the process, officials say, would have been impossible under the old framework.
Hassan also noted a surge in out-of-court settlements, with debtors and former bank officials now voluntarily approaching the NDIC to negotiate repayment terms.
“People can see the legal net tightening,” he said. “Many prefer to settle quietly rather than face prolonged litigation they are likely to lose.”
The NDIC boss praised the National Assembly for enacting the reforms and commended the judiciary for developing greater expertise in deposit-insurance cases, which he said has led to faster, fairer rulings.
With the enhanced powers, the Corporation pledged to intensify collaboration with regulators, law enforcement, and the courts to safeguard depositors and maintain confidence in Nigeria’s financial system.
“The message is clear: those who mismanage insured institutions will no longer walk away unscathed,” Hassan concluded. “We are fully committed to protecting the public and ensuring stability across the banking sector.”
