Umaru Ibrahim, immediate past managing director and chief executive officer, Nigerian Deposit Insurance Association (NDIC), has said that some Nigerian banks failed because of non-compliance with risk management.
Ibrahim, stated this on the heels of reports that 20 Nigerian banks have closed shops in the country.
He disclosed this during the 10th-anniversary conference and induction of new members at this year’s Enterprise Risk Management and Compliance Week.
Recall that the NDIC recently invited depositors of 20 liquated banks to come forward and claim their liquidation dividends amounting to N16.8 billion.
The closedown banks covered by this exercise include Liberty Bank, City Express Bank, Assurance Batik, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North-South Bank, and Prime Merchant Bank.
Others that were affected include, Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank.
According to Ibrahim, many banks failed due to non-compliance with risk management. He said that by the time the banks realized the importance of risk management, it was already late, and the situation was irredeemable, hence the failure of the banks.
