ADMINISTRATION OF THE LEGAL FRAMEWORK FOR DEPOSIT INSURANCE IN NIGERIA: A COMPARATIVE ANALYSIS OF THE NDIC ACT 2023 AND THE REVISED IADI CORE PRINCIPLES 2025

Abstract

The Nigeria Deposit Insurance Corporation Act 2023 marks a major reform of Nigeria’s deposit insurance architecture. It strengthens the statutory powers of the Nigeria Deposit Insurance Corporation (NDIC) in relation to deposit guarantee, bank supervision, failing-bank resolution, and liquidation of failed insured institutions. This article critically examines the administration of the NDIC Act 2023 against the Revised IADI Core Principles for Effective Deposit Insurance Systems 2025 and selected comparative models from selected jurisdictions. It argues that while the Act has modernised Nigeria’s deposit insurance regime and brought it closer to international standards, important institutional and operational gaps remain. The article concludes that Nigeria requires a more resolution-oriented deposit insurance system, supported by stronger inter-agency coordination, improved depositor data management, periodic review of coverage limits, statutory reimbursement timelines, and a dedicated institutional framework for bank resolution.