News

March 23, 2024

NDIC asks EFFC for funds recovered from bank frauds

NDIC asks EFFC for funds recovered from banks' frauds

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By Emma Ujah, Abuja Bureau Chief 

The Nigeria Deposit Insurance Corporation, NDIC, has requested the Economic and Financial Crimes Commission, EFCC, to return funds recovered from banks’ fraudsters to the corporation. 

The Managing Director of NDIC, Mr. Bello Hassan, made the request when he visited the commission’s headquarters in Abuja.

This was according to a statement by Bashir Nuhu, Director of Communications and Public Affairs in a statement.

“The NDIC boss called for enhanced collaboration in the recovery of depositors’ funds to ensure that liquidation dividends are paid to depositors, whose monies were lost as a result of bank failures.

Read Also: Don’t allow banks to fail – EFCC boss tasks NDIC

“He, therefore, solicited for the return of recoveries made by the EFCC on behalf of the NDIC to the Corporation’s coffers to facilitate the timely reimbursement of depositors,” the statement read in part.

The NDIC boss assured the EFCC of his commitment to ensuring that those who were responsible for the failure of banks were properly investigated and prosecuted. 

Financial crimes

Also, Mr. Hassan explained that the NDIC played a critical role in combatting financial crimes within the banking sector through its mandate, which includes bank supervision and liquidation of licensed banks. 

The ultimate objective, he added, was to protect depositors’ funds and ensure the stability of the financial system. 

He commended the EFCC for its relentless efforts in the fight against corruption and financial crimes and its role as a key member of the task force on the Implementation of the Failed Banks Act chaired by the NDIC.  

Mr. Hassan said the existing partnership between the two organisations which led to 10 high-profile cases referred to the Commission currently under investigation should be strengthened. 

The EFCC Chairman, Mr. Ola Olukoyede, stressed the interconnection between criminal activities and bank failures, urging NDIC and the Central Bank of Nigeria, CBN, to intensify oversight to prevent the risk of bank failure. 

He pledged the EFCC’s commitment to deepening collaboration and synergising efforts in combating financial crimes, thereby safeguarding the integrity of Nigeria’s banking sector.

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