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, 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.
NDIC stands for the Nigeria Deposit Insurance Corporation. It is an independent agency established by the Nigerian government to provide deposit insurance and promote stability in the Nigerian financial system.
The NDIC insures deposits in banks and other financial institutions, helps to supervise and regulate these institutions, and manages the liquidation of failed banks to protect depositors' funds and maintain public confidence in the banking system.
Overall, NDIC plays a crucial role in safeguarding the interests of depositors and ensuring the stability of Nigeria's financial sector.
“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.
“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.
Also, 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.
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, 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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