NDIC and BRIPAN Forge Stronger Alliance on Insolvency Reform
The Nigeria Deposit Insurance Corporation (NDIC) and the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) have taken significant steps to reinforce their collaborative efforts. This enhanced partnership is focused on improving the enforcement of Nigeria's insolvency laws and encouraging the adoption of modern business rescue practices.
Strengthening Financial Stability and Corporate Recovery
Mr. Thompson Sunday, the Managing Director of NDIC, made the announcement in Abuja during a meeting with a BRIPAN delegation. The delegation was led by the association's President, Mr. Chimezie Ihekweazu. Sunday stated that the core objective of this alliance is to boost financial stability and facilitate efficient corporate recovery processes across Nigeria.
He elaborated that this collaboration will empower both organizations to deliver more effective responses to business failures, financial distress, and systemic risks threatening the economy. Sunday defined insolvency law as the legal framework that governs how companies or individuals who can no longer meet their financial obligations are handled. These laws provide a roadmap for either restructuring a failing business to aid its recovery or liquidating it in an orderly manner to protect the interests of creditors, depositors, and employees.
NDIC's Enhanced Powers and Strategic Focus
The NDIC boss emphasized that the NDIC Act 2023 has significantly strengthened the Corporation's mandate. It grants enhanced powers to intervene in distressed banks, recover assets, and safeguard the overall stability of the financial system. He firmly stated that no institution is too big to fail, underscoring that the NDIC's primary responsibility is to ensure all insolvency cases are managed with transparency and in strict accordance with the law, thereby protecting the public interest.
Under its new strategic focus, the Corporation is committed to building robust capacity in key areas such as bank resolution, liquidation management, and distressed asset recovery. Sunday noted that all these critical functions rely heavily on having effective insolvency procedures in place. Looking forward, the NDIC anticipates collaborating with BRIPAN on joint capacity-building programmes, technical research, and policy dialogues. These initiatives are designed to strengthen Nigeria's insolvency regime and align it with international best practices.
BRIPAN's Role and Commitment to Collaboration
In his remarks, Mr. Chimezie Ihekweazu explained that BRIPAN is officially recognized under sections 705 and 707 of the Companies and Allied Matters Act (CAMA) 2020. This recognition empowers the association to advance knowledge and practice in the fields of insolvency, business recovery, and restructuring. He described the NDIC as a key partner in maintaining financial stability and expressed confidence that closer collaboration would lead to improved training and policy development in insolvency administration.
Ihekweazu declared, "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."
Background on NDIC's Anti-Nepotism Drive
This development follows a recent report by The Guardian which revealed that the NDIC has halted the employment of staff members who have close family relatives already working within the Corporation. A circular issued to staff in May 2025 stated that this policy was necessary to promote transparency and guard against conflicts of interest.
The circular, referencing a decision from the Board of Directors' 117th meeting held in March 2022, directed the Corporation to maintain a strict policy prohibiting the employment of individuals with family ties such as parent/child, spouses, or co-parenting relationships. The policy also stipulated that if such relationships are discovered among current co-employees, one of them would be required to resign. All staff were mandated to disclose any existing family relationships within the organization to the Human Resources Department immediately.
