By Lucy Ogalue
The Nigeria Deposit Insurance Corporation (NDIC) and the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) have strengthened collaboration to implement insolvency laws and promote business rescue practices.
The Managing Director of NDIC, Mr Thompson Sunday, stated this when he received a BRIPAN delegation led by its President, Mr Chimezie Ihekweazu (SAN), in Abuja.
He said that that collaboration was aimed at enhancing financial stability and support efficient corporate recovery in Nigeria.
He explained that insolvency law refers to the legal framework governing the process for dealing with companies or individuals that can no longer meet their financial obligations.
According to him, such laws guide how failing businesses are either restructured to recover or liquidated in an orderly manner to protect creditors, depositors, and employees.
Sunday added that the NDIC Act 2023 had strengthened the corporation’s powers to manage bank resolution processes, recover assets, and promote stability in the financial system.
He stressed that no institution was too big to fail, and that the NDIC’s task was to ensure insolvency cases were managed transparently and in accordance with the law to protect the public interest.
He said that under NDIC’s new strategic focus, the corporation was committed to building capacity in bank resolution, liquidation management, and distressed asset recovery, all of which relied heavily on effective insolvency procedures.
Sunday further noted that the corporation looked forward to collaborating with BRIPAN on joint capacity-building programmes, technical research, and policy dialogues that would strengthen Nigeria’s insolvency regime in line with international best practices.
In his remarks, Ihekweazu explained that BRIPAN was recognised under section 705 and 707 of the Companies and Allied Matters Act (CAMA) 2020 to advance knowledge in insolvency, business recovery, and restructuring.
He described the NDIC as a key partner in maintaining financial stability and said that closer collaboration would improve training and policy development in insolvency administration.
“The association is ready to collaborate with NDIC on staff training and stakeholder sensitisation,” he said.
“It will also work on developing guidelines to enhance the understanding and enforcement of insolvency procedures in the financial services sector.” (NAN)(www.nannews.ng)
Edited by Kevin Okunzuwa
