The Nigeria Deposit Insurance Corporation (NDIC) has unveiled its intentions to launch investigations into the activities of directors associated with certain collapsed banks within the country.
Mr. Bello Hassan, the Managing Director of NDIC, made this announcement during a capacity-building seminar focused on enhancing collaboration in combating fraudulent practices and financial misconduct within banks and financial institutions in Nigeria. The event, held in Lagos on Thursday, centered around the theme of “Effective Cooperation in the Battle Against Fraud and Financial Wrongdoings in Nigeria’s Banking Sector.”
Addressing the workshop attendees, Mr. Hassan, represented by Mr. Henry Fomah, the Head of the Legal Department at NDIC, revealed, “Thanks to your combined efforts, I am informed that there are currently 12 ongoing prosecution cases in various courts, along with 25 ongoing investigations supervised by the Financial Malpractices Investigation Unit (FMIU). Additionally, there are 11 cases under investigation by the Economic and Financial Crimes Commission (EFCC), and five investigations have reached completion, awaiting guidance and potential prosecution from the Federal Ministry of Justice.”
“This is an indication that we are on the right course. As you are all aware, the Central Bank of Nigeria recently revoked the banking licenses of 183 Microfinance Banks and Primary Mortgage Banks, which may require you to be called upon to investigate some of the directors and officers of these institutions with a view to bringing to book those found culpable in the collapse of these institutions.”
Attendees at the seminar hosted by NDIC comprised delegates from the Nigerian Financial Intelligence Unit, Central Bank of Nigeria (CBN), Nigerian Police, Economic and Financial Crimes Commission (EFCC), and the Director of Public Prosecution of the Federation, among other participants.
Acknowledging the escalating susceptibility of banks to fraudulent activities, he underlined that this circumstance was placing additional responsibility on regulators and overseers to strengthen their functional capabilities.
He further emphasized, “This has further underscored the necessity for heightened cooperation among the various agencies engaged in combating malfeasance within the banking sector.”