•Reveals 11 cases now in court, 42 under investigation at EFCC, intelligence unit, others

NumeEkeghe

The Nigeria Deposit Insurance Corporation (NDIC) has said that collaboration between law enforcement and regulatory agencies in tackling insider abuses and financial malpractices in the banking system was yielding measurable results, including active prosecutions and ongoing investigations.

This was disclosed yesterday by the Acting Managing Director/Chief Executive of NDIC, Mrs. Emily Osuji, at the opening of the 2025 Capacity Building Workshop for Law Enforcement Agencies, with the theme: “Investigating and Prosecuting Financial Malpractices in Banks: A Critical Analysis of Strategies to Prevent Bank Failures.”

She said: “There is no gainsaying that this collaboration has yielded and is still yielding results, particularly in the area of investigation and prosecution.

“Just like other initiatives by the corporation, this workshop aims to complement the efforts of the Inter-agency Task Force on the Implementation of the Failed Banks Act.

“The corporation, whilst bearing in mind the positive impact of such collaboration, will continue to strive to enhance this synergy in the area of law enforcement relating to the investigation and prosecution of financial malpractices.

“Kindly permit me to use this forum to appeal to the members of the task force not to relent but to execute the given mandate diligently in achieving the objectives of establishing the task force.”

According to her, significant progress was already being recorded.

She added: “Through your collaborative efforts, I am aware that 11 cases are currently being prosecuted at various courts, 25 ongoing investigations with FMIU, eight 8 with EFCC and nine concluded investigations with the Federal Ministry of Justice for advice and prosecution. This is an indication that we are on the right course.”

She added that the recent revocation of Heritage Bank’s licence by the Central Bank of Nigeria was already under probe.

“As you are all aware, the Central Bank of Nigeria recently revoked the banking licence of Heritage Bank Plc and an investigation of some of the Directors, Managers and officers of this failed insured Institution is ongoing to bring to book those found culpable in the collapse of this institution.”

Beyond enforcement, Osuji highlighted the NDIC’s concern over the rising threat of cybercrime and other technology-enabled fraud in the financial system.

“Banks and banking operations are becoming more vulnerable. The advancements in information technology that open new possibilities and vistas in banking operations have equally exposed the banking subsector to emerging threats.

“This situation increases the burden on the regulators and supervisors to enhance their operational capacities. It has also heightened the need for more collaboration between Agencies involved in the fight against banking malpractices.

“The authorities are becoming more proactive with policies and examinations/investigations to ensure that the banks/financial institutions strengthen their internal control processes through strong risk management practices to prevent loss of funds and maintain depositors’ confidence in the banking system,” she maintained.

The acting MD urged security and enforcement officers to familiarise themselves with modern bank fraud typologies such as ATM-related frauds, fraudulent transfers, internet banking scams, suppression of customer deposits, unauthorised credits, and money laundering.

In his remarks, Director of the Legal Department at NDIC, OlufemiKushimo, said the rise in fintech-related fraud underlines the need for deeper inter-agency synergy and stronger deterrents.

“Apart from a workshop to collaborate, it is an affirmation of our collective commitment to having a safe and sound financial system. It’s also a way for us to strategise, collaborate, and strengthen our inter-agency relationship in the fight against financial fraud and keep our financial system safe,” Kushimo said.

“You will agree with me that if we want to have a very strong economy by the year 2030, a $1trillion economy which is a dream of the president, it is important to keep our financial system safe.

“We have to restore confidence in the system, thereby eliminating crime. Apart from that, we must restore the confidence of the depositors and the international community.

“As we go on with this workshop, let us have it at the back of our minds as we deliberate on ways and means to strengthen the system, prevent internal fraud, and most importantly, strengthen the prosecution because the essence of criminal justice is deterrent.

“Once there is a threat of prosecution of financial crimes, it will deter people from committing insider-related crimes.”

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