The Nigeria Deposit Insurance Corporation (NDIC) and the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) have strengthened their collaboration to improve the enforcement of insolvency laws and encourage modern business rescue practices.
Managing Director of NDIC, Mr. Thompson Sunday, announced this in Abuja during a meeting with a BRIPAN delegation led by its President, Mr. Chimezie Ihekweazu. He stated that the partnership aims to boost financial stability and facilitate efficient corporate recovery in Nigeria.
He added that the collaboration would enable both organisations to provide more effective responses to business failure, financial distress, and systemic risks within the economy.
Sunday 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.
He emphasised that the NDIC Act 2023 has further strengthened the Corporation’s powers to intervene in distressed banks, recover assets, and safeguard stability in the financial system.
He emphasised that no institution was too big to fail, and that the NDIC’s primary responsibility was to ensure that insolvency cases were managed transparently and in accordance with the law, thereby protecting 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 sections 705 and 707 of 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.
Ihekweazu said: “The association is ready to collaborate with NDIC on staff training and stakeholder sensitisation. It will also work on developing guidelines to enhance the understanding and enforcement of insolvency procedures in the financial services sector.”
Months ago, The Guardian reported that the NDIC stopped employing staff members with family relatives in the Corporation. NDIC, which stated this in a circular issued to staff members, said this has become necessary to promote transparency and guard against conflict of interest.
The circular dated May 21, 2025, reads: “This is to remind all staff that the Board of Directors at its 117th meeting held on Tuesday, 1st, Wednesday 2nd, Thursday 3rd and Friday 4th, March, 2022 directed that the Corporation maintains a strict policy prohibiting the employment of staff with family relatives in the Corporation. This included parent/child, spouses and co-parenting.
“In line with the existing practice, if a parent and child or couples are co-employees, one of them should be advised to resign.
“This policy aims to avoid any potential conflict of interest, promote transparency and maintain a fair and unbiased work environment.
“All staff are required to disclose any existing family relationships within the organisation to the Human Resources Department immediately.
“Management appreciates staff understanding and cooperation in upholding the values of the Corporation and is committed to maintaining a transparent, healthy and professional work environment.”
