NDIC, EFCC Move to Tighten Crackdown on Bank Failures, Asset Stripping

The Nigeria Deposit Insurance Corporation (NDIC) and the Economic and Financial Crimes Commission (EFCC) have resolved to strengthen their collaboration in investigating and prosecuting offences that contribute to bank failures, while enhancing the recovery of assets and debts from failed financial institutions.
This commitment was made during a courtesy visit by the management of the NDIC, led by its Managing Director and Chief Executive Officer, Mr. Thompson Oludare Sunday, to the EFCC Chairman, Mr. Olanipekun Olukoyede, at the Commission’s headquarters in Abuja.
Members of the NDIC delegation included the Executive Director, Corporate Services, Mrs. Emily Osuji; the Executive Director, Operations, Dr. Kabir Katata; as well as other senior directors of the Corporation.
Speaking during the visit, Mr. Sunday said effective collaboration with the EFCC is crucial to the successful liquidation of failed banks, particularly in the areas of asset realisation and debt recovery, the proceeds of which are used to pay uninsured depositors.
He noted that practices such as asset stripping and concealment often frustrate liquidation processes, stressing the need for a closer partnership with the EFCC in asset tracing, recovery and enforcement.
According to him, the collaboration will also extend to combating banking fraud and other financial crimes, as well as prosecuting individuals whose actions or omissions contribute to the collapse of banks.
Mr. Sunday explained that through its core mandates of deposit guarantee, bank supervision, distress resolution and bank liquidation, the NDIC plays a critical role in maintaining financial system stability and protecting depositors’ funds.
Responding, EFCC Chairman Mr. Olukoyede reaffirmed the Commission’s commitment to its long-standing partnership with the NDIC in tackling financial crimes within the banking sector.
He acknowledged the history of cooperation between both agencies, particularly in investigations and capacity building, and disclosed that the EFCC has dedicated units, including the Bank Fraud Section, that specifically handle NDIC-related cases.
Mr. Olukoyede urged the NDIC to forward any pending cases to the Commission for prompt review, noting that this would enhance effective monitoring and speedy resolution.
He also highlighted the role of the EFCC’s Fraud Risk Assessment and Control Department in promoting regulatory compliance, sound risk management and strong internal controls across institutions.
The EFCC Chairman pledged continued collaboration with the NDIC to safeguard the stability, integrity and public confidence in Nigeria’s banking system.