Abuja: The Nigeria Deposit Insurance Corporation (NDIC) and the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) have reinforced their collaboration to effectively implement insolvency laws and promote business rescue practices in the country. This development was highlighted during a meeting between NDIC’s Managing Director, Mr. Thompson Sunday, and a BRIPAN delegation led by its President, Mr. Chimezie Ihekweazu (SAN), in Abuja.
According to News Agency of Nigeria, the collaboration aims to enhance financial stability and support efficient corporate recovery across Nigeria. Mr. Sunday explained that insolvency law serves as a legal framework for managing companies or individuals unable to meet their financial obligations. Such laws facilitate the restructuring of failing businesses or their orderly liquidation to protect creditors, depositors, and employees.
Mr. Sunday further noted that the NDIC Act 2023 has bolstered the corporation’s authority to manage bank resolution processes, recover assets, and promote stability within the financial system. He emphasized the importance of managing insolvency cases transparently and in accordance with the law to protect public interest, underscoring that no institution was too big to fail.
Under NDIC’s new strategic focus, the corporation is committed to enhancing capacity in areas such as bank resolution, liquidation management, and distressed asset recovery, all of which depend on effective insolvency procedures. Mr. Sunday expressed anticipation for collaborating with BRIPAN on joint capacity-building programmes, technical research, and policy dialogues to align Nigeria’s insolvency regime with international best practices.
Mr. Ihekweazu, in his remarks, highlighted BRIPAN’s recognition under sections 705 and 707 of the Companies and Allied Matters Act (CAMA) 2020 to advance knowledge in insolvency, business recovery, and restructuring. He described NDIC as a vital partner in maintaining financial stability and noted that closer collaboration would enhance training and policy development in insolvency administration.
He added that the association is prepared to work with NDIC on staff training and stakeholder sensitization, as well as develop guidelines to improve the understanding and enforcement of insolvency procedures in the financial services sector.