NDIC Urges Stronger Collaboration to Tackle Financial Crimes, Insider Abuses in Banks

The Nigeria Deposit Insurance Corporation (NDIC) has called for stronger collaboration between law enforcement agencies and financial regulators to combat financial malpractices, insider abuses, and emerging cyber threats undermining the stability of Nigeria’s banking sector.

This charge was delivered by Mrs. Emily Osuji, Executive Director of Corporate Services, who spoke on behalf of the Managing Director/Chief Executive Officer of NDIC, Mr. Sunday Oludare Thompson, at the 2025 Capacity Building Workshop for Law Enforcement Agencies. The three-day workshop, held from July 7 to 9 at the Vintano Hotel, Lekki, Lagos, brought together key players in law enforcement and financial regulation.

In attendance were the Director of Public Prosecution of the Federation, Mr. M.B. Abubakar; Commissioner of Police, Police Special Fraud Unit (PSFU), CP Ronke N. Okunade; and the Coordinator of the Federal Ministry of Industry and Urban Development (FMIU), DCP Sirajo M. Salisu, among other stakeholders, regulators, and security operatives.

Thompson emphasized that the NDIC, as a critical part of Nigeria’s financial safety net, remains committed to promoting a sound banking system, noting that stability in the financial sector is essential for the nation’s economic growth.

“The fight against insider abuses and financial malpractices in banks is central to safeguarding public confidence and ensuring financial system stability,”  Thompson said.

Managing Director explained that since 2012, the NDIC has consistently organized the annual workshop to strengthen the investigative and prosecutorial capacities of law enforcement officers, particularly in handling cases involving directors, managers, and officers of failed banks.

This year’s workshop theme, “Investigating and Prosecuting Financial Malpractices in Banks: A Critical Analysis of Strategies to Prevent Bank Failures,” underscores the urgent need for coordinated action against the systemic risks posed by unethical banking practices.

According to Thompson , collaborative efforts are already yielding results. She disclosed that:

• 11 financial crime cases are currently being prosecuted in courts,
• 25 investigations are ongoing with the Federal Ministry of Industry and Urban Development (FMIU),
• 8 cases are under the Economic and Financial Crimes Commission (EFCC), and
• 9 concluded investigations have been forwarded to the Federal Ministry of Justice for legal advice and possible prosecution.

Osuji also referenced the recent revocation of Heritage Bank Plc’s license by the Central Bank of Nigeria (CBN), revealing that investigations into the roles played by some of the bank’s directors and officers are underway.

He acknowledged the complexities of investigating financial crimes and encouraged law enforcement agencies not to relent, assuring them of NDIC’s continuous support.

Highlighting the growing threats in the financial sector, Thompson noted that criminal elements, particularly cybercriminals, are exploiting technological advancements in banking. She outlined prevalent fraud types such as ATM card fraud, unauthorized transfers, internet banking fraud, forged cheques, suppression of customer deposits, and money laundering.

NDIC Boss urged security operatives to stay ahead by constantly upgrading their skills and adapting to evolving financial technologies, warning that the vulnerabilities in modern banking require vigilance and robust internal controls from banks and financial institutions.

“The challenges are increasing, but through inter-agency cooperation and sustained capacity building, we can mitigate the risks and strengthen public trust in the financial system,” he said.

Thompson called on the Inter-Agency Task Force on the Failed Banks Act to remain committed to its mandate, adding that active collaboration between all stakeholders is critical to preventing future bank failures.

He encouraged participants to actively engage in the workshop discussions and work toward practical solutions that will advance financial stability.

The workshop was officially declared open as managing Director thanked facilitators and participants for their dedication to securing Nigeria’s financial landscape.

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