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The Nigeria Deposit Insurance Corporation (NDIC) has announced its plans to initiate an investigation into the directors and officers of the 183 banks whose licenses were revoked earlier this year. Mr. Bello Hassan, the Managing Director of NDIC, revealed this during a one-day capacity building workshop for law enforcement agencies held in Lagos.
Hassan mentioned that law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC) and the Nigerian police, would soon be engaged to investigate any wrongdoing by the directors of these defunct banks.
“Following the recent revocation of the licenses of 183 MicroFinance Banks (MFBs) and Primary Mortgage Banks (PMBs) by the Central Bank of Nigeria, you may be called upon to investigate some of the directors and officers of these institutions to hold accountable those responsible for their collapse,” he explained.
Hassan, represented by Mr. Henry Fomah, Head of the Legal Department at NDIC, pointed out that through collaborative efforts between agencies, 12 prosecution cases are currently underway in various courts.
He further stated, “There are 25 ongoing investigations at the Nigeria Financial Intelligence Unit (NFIU), 11 with the EFCC, and five concluded investigations with the Federal Ministry of Justice for advice and prosecution.”
This demonstrates that the corporation, along with other government bodies, is actively working towards the same goal through effective collaboration.
Hassan emphasized the importance of bringing to justice those who played a part in the downfall of these banks, as this is pivotal for maintaining a stable financial system. He also stressed that the ongoing technological advancements in banking operations have brought both opportunities and challenges, necessitating enhanced collaboration among regulatory bodies to combat banking malpractices.
Mr. Kofo Salam-Alada, the Head of Legal Services at the Central Bank of Nigeria (CBN), highlighted the necessity for collaborating agencies to deeply understand how regulators function.
Salam-Alada commended the Nigerian Deposit Insurance Corporation for its ongoing efforts in sponsoring capacity-building exercises, noting that it is crucial for agencies to have a solid grasp of regulatory operations.
The workshop’s objective is to equip officers involved in investigating financial malpractices within the banking system with the necessary skills to perform their duties diligently. It aims to enhance their expertise as law enforcement officers and staff of agencies involved in the investigation of banking malpractices, particularly in distressed banks.
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