NDIC to Investigate Directors of Revoked Banks in Nigeria

The Nigeria Deposit Insurance Corporation (NDIC) has announced its intention to conduct investigations into the directors of 183 banks whose licenses were recently revoked. The Managing Director of NDIC, Mr. Bello Hassan, shared this information during a capacity-building workshop for law enforcement agencies in Lagos. NDIC plans to collaborate with the Economic and Financial Crimes Commission (EFCC) and the Nigerian police to probe alleged irregularities by the directors of these defunct banks.

Collaborative Efforts and Ongoing Cases:

• The NDIC is currently working in collaboration with various agencies on 12 prosecution cases that are in progress in different courts.
• The Central Bank of Nigeria recently revoked the licenses of 183 MicroFinance Banks (MFBs) and Primary Mortgage Banks (PMBs).
• There are 25 ongoing investigations at the Nigeria Financial Intelligence Unit (NFIU), 11 with the EFCC, and five investigations have been concluded and forwarded to the Federal Ministry of Justice for advice and prosecution.

Objective and Outcomes:

• The NDIC aims to hold accountable directors, officers, and managers of these collapsed banks who were found to be responsible for their downfall.
• The corporation believes that collaboration with various government agencies will facilitate effective investigation and prosecution of financial malpractices.
• The NDIC acknowledges the challenges of investigating and prosecuting financial malpractices and bank fraud cases. It calls on officers not to relent in their efforts, especially considering the evolving landscape of banking operations due to advancements in information technology.

Recent Developments:

Last week, NDIC initiated the process of paying depositors in 179 microfinance banks and four primary mortgage banks across Nigeria. The commission encouraged affected depositors to provide alternate bank account details for payment. Those without alternate bank accounts were instructed to visit the nearest NDIC office with proof of account ownership and identification for verification and payment.

This move by NDIC reflects its commitment to holding accountable those responsible for financial irregularities and malpractices, while also ensuring the protection of depositors’ interests.

Source: Nairametrics