Nigeria Deposit Insurance Corporation (NDIC) has announced its intention to initiate an investigation into the directors and executives of the 183 microfinance banks whose licenses were revoked earlier this year by the Central Bank of Nigeria (CBN).
Mr. Bello Hassan, managing director and chief executive officer of NDIC, made this declaration during a capacity-building workshop for law enforcement agencies held in Lagos yesterday.
He mentioned that law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC) and the Nigerian police, will soon be summoned to investigate fraudulent activities conducted by the directors of the now-defunct banks.
Hassan who was represented by Henry Fomah, head of Legal Department of the NDIC, said: “As you are all aware, the Central Bank of Nigeria recently revoked banking licences of 183 microfinance banks and primary mortgage banks which may require you to be called upon to investigate some of the Directors and officers of these institutions with a view to bringing to book those found culpable in the collapse of these institutions.”
He noted that through collaborative efforts of agencies, 12 cases are currently prosecuted at various courts, 25 ongoing investigations with Nigeria Financial Intelligence Unit (NFIU), 11 with EFCC, and five concluded investigations with the Federal Ministry of Justice for advice and prosecution.
“The corporation, whilst bearing in mind the positive impact of such collaboration will continue to. Strive at enhancing the synergy between all of us in the areas of law enforcement relating to the investigation and prosecution of financial malpractices.
“I want to use this forum to appeal to the members of the Task Force not to relent on your oars but to execute the given mandate diligently thereby achieving the objectives of establishing the Task Force, “he said.
On his part, Kofo Salam-Alada, head of Legal Services at the Central Bank of Nigeria, noted that as one of the most regulated industries around the world, it is necessary for agencies that will be collaborating with regulators to actually have deep of insight into how regulators operate.
