NDIC partners law enforcement agencies on investigation of banks fraud

The Nigeria Deposit Insurance Corporation (NDIC) has pledged unwavering support to law enforcement agencies in the investigation and prosecution of financial malpractices and bank fraud cases in Nigerian financial institutions.

This commitment was reaffirmed by Emily Osuji, acting managing director of NDIC during the Corporation’s annual capacity building workshop for law enforcement agencies held on Monday.

The workshop is part of ongoing collaboration efforts with agencies including the Financial Malpractices Investigation Unit (FMIU), the Nigerian Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC), the Federal Ministry of Justice, the Federal Ministry of Finance, and the Central Bank of Nigeria (CBN).

“We are not unaware of the challenges of investigating and prosecuting financial malpractices and bank fraud cases, but we urge you not to relent in your efforts. Be rest assured of our unflinching support at all times,” Osuji told participants at the event.

She disclosed that the collaboration between NDIC and law enforcement agencies had already yielded significant results.

According to her, 11 cases are being prosecuted in various courts, while 25 are under investigation with the FMIU, eight with the EFCC, and nine concluded investigations have been forwarded to the Federal Ministry of Justice for advice and prosecution.

“This is a clear indication that the collaboration is producing results”, she noted.

Osuji explained that the theme of the workshop, “Investigating and Prosecuting Financial Malpractices in Banks: A Critical Analysis of Strategies to Prevent Bank Failures”, was deliberately chosen to reinforce the collective resolve from previous engagements to confront insider abuses and financial malpractices. She warned that if left unchecked, these issues could erode public confidence in the banking sector and contribute to bank failures.

She noted that the workshop also complemented the efforts of the Inter-Agency Task Force on the Implementation of the Failed Banks Act.

She expressed hope that all member agencies of the Task Force were represented and urged them not to relent in their mandate to support Nigeria’s financial stability. “The Corporation will continue to enhance this synergy in law enforcement, especially in areas relating to investigation and prosecution of financial malpractices,” she added.

Highlighting the evolving nature of the financial system, Osuji noted that technological advancement has brought new threats, particularly from cybercriminals. She stressed the need for law enforcement officers to continuously upgrade their knowledge and adapt to the changing landscape.

Officers, she said, must understand the various types of fraud prevalent in Nigeria’s banks, including ATM card-related frauds, fraudulent transfers and withdrawals, internet banking frauds, lodgement of stolen warrants, unauthorised credits, outright cash theft, presentation of forged or stolen cheques, suppression of customer deposits, money laundering, terrorism financing, and increasingly, cybercrime.

In his welcome address, Olufemi Kushimo, director of Legal Department at the NDIC, acknowledged the alarming rise in cybercrime and financial fraud. He described the workshop as a vital step in reaffirming the collective commitment to a safe and sound financial system.

According to him, the workshop serves as a platform to build strategic inter-agency cooperation and fortify the financial sector against fraud.

He emphasised the broader national importance of these efforts, linking a secure financial system to the achievement of Nigeria’s broader economic goals, including the vision of a $1 trillion economy.

“We must keep our financial system safe to restore confidence among depositors and the international community. Strengthening prosecution will serve as a deterrent to future financial crimes. That is the essence of criminal justice,” Kushimo said.

He urged participants to stay focused as they deliberate on practical strategies to prevent internal fraud, crises, and strengthen the legal framework for prosecuting financial crime.