NDIC Vows to Crack Down on Bank Failures
…Investigates 10 High-Profile Cases
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has taken a strong stance against those who contribute to bank failures, vowing to investigate and prosecute them.
This comes alongside a revealation of 10 high-profile cases already referred to the Economic and Financial Crimes Commission (EFCC) for investigation.
This heightened focus on accountability stems from a collaborative effort between the NDIC and EFCC.
The partnership, established in August 2022 through the creation of an NDIC Help Desk within the EFCC, has streamlined the process of identifying and pursuing wrongdoing in the banking sector.
The NDIC’s Managing Director and Chief Executive, Mr. Bello Hassan, emphasized the importance of this collaboration during a courtesy visit to the EFCC headquarters in Abuja.
He met with Mr. Ola Olukoyede, the Executive Chairman of the EFCC, and called for enhanced cooperation in recovering depositors’ funds.
Hassan specifically requested the return of recovered funds by the EFCC on behalf of the NDIC. These recovered funds would be deposited back into the NDIC’s coffers to facilitate the swift reimbursement of depositors who lost money due to bank failures.
Mr. Hassan elaborated on the NDIC’s role in safeguarding the financial system. He highlighted the corporation’s mandate, which includes bank supervision and the liquidation of failed banks. These actions all contribute to the NDIC’s primary objective: protecting depositors’ funds and ensuring financial stability.
Hassan commended the EFCC’s ongoing fight against corruption and financial crimes. He acknowledged the EFCC’s crucial role as a member of the Taskforce on Implementation of the Failed Banks Act, chaired by the NDIC.
The EFCC Chairman, Mr. Ola Olukoyede, reciprocated the positive sentiment. He underscored the link between criminal activity and bank failures. Olukoyede urged the NDIC and the Central Bank of Nigeria (CBN) to work together and strengthen oversight mechanisms to proactively prevent bank failures.
The meeting concluded with a commitment from both the NDIC and EFCC to deepen collaboration and unify efforts in combating financial crimes. This collaboration serves to safeguard the integrity and stability of Nigeria’s banking sector.
