Failed banks: NDIC, EFCC strengthen synergy on asset tracing, recovery, prosecution

The Managing Director of the Nigerian Deposit Insurance Corporation, NDIC, Thompson Sunday, has stated that effective collaboration with the Economic and Financial Crimes Commission, EFCC, is crucial to the successful liquidation of failed banks.

This is in line with the NDIC’s reaffirmed commitment to strengthening collaboration with the anti-graft agency to improve the recovery of assets and debts, and to ensure the investigation and prosecution of persons who contribute to the failure of banks.

The assertions are contained in a statement signed by the Head of Communication and Public Affairs at the NDIC, Hawwau Gambo, following a courtesy visit by the NDIC boss to the EFCC, alongside his management team.

The NDIC MD explained that addressing cases of asset stripping and concealment requires close partnership with the anti-graft agency through enhanced tracing, recovery and enforcement actions, which largely involve asset realisation and debt recovery, especially bank proceeds, which are applied to the payment of uninsured deposits.

Mr Sunday pointed out areas of collaboration with the EFCC to include: addressing banking fraud, financial crimes in the banking system and the prosecution of individuals who contribute to the failure of banks and loss of assets.

“Through the effective implementation of its four core mandates of Deposit Guarantee, Bank Supervision, Distress Resolution and Bank Liquidation, the NDIC contributes significantly to ensuring the stability of the financial system.

“The ultimate objective of the Corporation is the protection of depositors’ funds, prompt payment of depositors in the event of bank failure and strengthening public confidence in the financial system.

“The NDIC and the EFCC share core values of integrity, professionalism and collaboration. This visit is a formal engagement towards strengthening institutional partnership, particularly in areas where EFCC’s investigative and prosecutorial capabilities are crucial to the achievement of NDIC’s mandates,” the NDIC boss said.

Responding to NDIC, the Executive Chairman of the EFCC, Mr Olanipekun Olukoyede, reaffirmed the Commission’s strong working relationship with the corporation in addressing financial crimes in the banking sector, acknowledging the longstanding cooperation between both institutions, especially in investigations and capacity building on the intricacies of banking operations.

Olukoyede informed the delegation about key departments within the Commission, including the Bank Fraud Section, which handles NDIC-related cases, urging the Corporation to bring forward any pending cases for prompt review to ensure better traction and effective progress monitoring.

He also highlighted the role of the EFCC’s Fraud Risk Assessment and Control Department, which focuses on proactive monitoring of compliance, promotion of sound risk management processes, and internal controls within public and private sector institutions.

The EFCC Chairman pledged the Commission’s continued commitment to deepening collaboration and strengthening synergy with the NDIC in combating financial crimes, enhancing asset recovery, and prosecuting those whose actions undermine the stability and integrity of Nigeria’s banking sector.