Regulatory Alerts2023-06-03
NDIC ACT 2023
The Nigeria Deposit Insurance Corporation Act of 2023 has been enacted to replace the previous act from 2006. The new act aims to provide a framework for the Nigeria Deposit Insurance Corporation (NDIC) to protect depositors and ensure financial system stability. The act outlines the functions, powers, and governance structure of the NDIC, as well as the regulations for deposit insurance schemes and failure resolution of insured institutions. The Act establishes the NDIC as the insurer of all insurable deposit liabilities of insured institutions. The NDIC is tasked with providing orderly compensation to depositors in the event of bank failures and contributing to financial system stability. One notable aspect of the Act is the framework it provides for managing and resolving failing financial institutions. This includes measures for financial assistance, mergers and acquisitions, and the liquidation of insured institutions. It also addresses issues of criminal prosecution and outlines offenses and penalties related to financial malpractice.