The Nigeria Deposit Insurance Corporation (NDIC), in collaboration with law enforcement agencies, is set to investigate the directors, managers, and staff of the now-defunct Heritage Bank. This announcement comes over a month after the bank’s liquidation.

Bello Hassan, NDIC managing director represented by director of corporate communications Bashir Nuhu, made the statement at the 2024 capacity building workshop for law enforcement agencies in Lagos.

The workshop, titled “Inter-Agency Collaboration in the Fight Against Financial Malpractices in Banks and Other Financial Institutions in Nigeria,” emphasised the importance of cooperation in addressing financial crimes.

Read also: Discrepancy in account names delaying Heritage Bank customers’ payment – NDIC

Hassan highlighted that the Central Bank of Nigeria’s recent revocation of Heritage Bank’s license necessitates a thorough investigation into the bank’s collapse. The NDIC is determined to bring those responsible to justice. Currently, there are 14 ongoing prosecution cases in various courts, 18 investigations with the Financial Malpractices Investigation Unit (FMIU), eight with the Economic and Financial Crimes Commission (EFCC), and nine concluded investigations pending advice and prosecution from the Federal Ministry of Justice.

“The NDIC, as a key participant in the financial safety-net, has taken the fight against insider abuses and financial malpractices in banks very seriously,” Hassan said. “A safe and sound banking environment is essential for financial system stability, which is the bedrock of economic development.”

Related News

Despite the challenges in investigating and prosecuting financial crimes, Hassan urged law enforcement agencies to continue their efforts, assuring them of the NDIC’s unwavering support. He reiterated that effective collaboration is crucial in combating insider abuses and financial malpractices, which are major causes of bank failures and threats to public confidence in the banking system.

Since 2012, the NDIC has organized workshops to enhance the skills of law enforcement and regulatory agency officers involved in investigating and prosecuting bank fraud. Hassan stressed the importance of adapting to the rapidly evolving banking system, driven by financial technology innovations, to stay ahead of cybercriminals and other financial fraudsters.

The workshop aims to reinforce the resolve to unite with law enforcement agencies in the fight against financial malpractices, ensuring a stable and trustworthy banking environment in Nigeria.

AIG Romokere Ibani, assistant inspector general of Police, FCID, Alagbon, Lagos, in a goodwill message, challenged bank management to scrutinize internal practices to prevent financial crimes. “Evidence has proven that those who defrauded the banks succeeded with the support of insiders,” Ibani stated.

Olanipekun Olukoyede, executive chairman of the Economic and Financial Crimes Commission (EFCC), represented by Lagos Zonal Commander Michael Wetkas, also urged banks to screen their staff thoroughly to identify those colluding with criminals. He commended the NDIC for organizing the workshop.

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp