Nigeria’s Deposit Insurance Corporation (NDIC) has announced its intention to launch investigations into the directors of the 183 banks whose licenses were recently revoked.
Mr. Bello Hassan, the Managing Director of NDIC, revealed this during a one-day capacity-building workshop for law enforcement agencies in Lagos.
The NDIC plans to collaborate with the Economic and Financial Crimes Commission (EFCC) and the Nigerian police to scrutinize the actions of the directors of these defunct banks for any wrongdoing.
Mr. Henry Fomah, Head of the Legal Department of NDIC, speaking on behalf of Bello Hassan, highlighted that several prosecution cases were already underway in various courts due to the combined efforts of these agencies.
“As you are all aware, the Central Bank of Nigeria recently revoked the banking licenses of 183 MicroFinance Banks (MFBs) and Primary Mortgage Banks (PMBs) which may require you to be called upon to investigate some of the directors and officers of these institutions with a view to bring to book those found culpable in the collapse of these institutions,” Fomah explained.
He went on to detail ongoing investigations, saying, “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.”
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The NDIC’s chief highlighted the positive impact of collaboration between government agencies and stressed the importance of holding responsible those directors, officers, and managers of banks that led to their downfall.
“The corporation, whilst bearing in mind the positive impact of such collaboration, will continue to strive at enhancing the synergy between all of us in the areas of law enforcement relating to investigation and prosecution of financial malpractices,” he added.
Addressing the challenges of investigating and prosecuting financial malpractices, NDIC acknowledged the evolving threats in the banking sector due to advancements in information technology. The commission urged officers not to waver in their efforts.
“I want to use this forum to appeal to the members of the task force not to relent on your oars but to execute the given mandate diligently thereby achieving the objectives of establishing the task force,’’ he said.
Last week, the NDIC initiated the process of reimbursing depositors in 179 microfinance banks and four primary mortgage banks across Nigeria. The commission called upon affected depositors to provide alternate bank accounts for their payments.
Those without such accounts were advised to visit the nearest NDIC office with proof of account ownership and valid means of identification for verification and payment.
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