NDIC, EFCC Strengthen Partnership to Tackle Bank Failures and Recover Assets

The Nigeria Deposit Insurance Corporation (NDIC) and the Economic and Financial Crimes Commission (EFCC) have agreed to deepen collaboration aimed at strengthening the investigation and prosecution of offences that lead to bank failures, as well as improving asset and debt recovery from failed banks.

This agreement was highlighted during a courtesy visit by the management of the NDIC, led by its Managing Director and Chief Executive, Mr. Thompson Oludare Sunday, to the Chairman of the EFCC, Mr. Olanipekun Olukoyede, in Abuja. Other members of the NDIC delegation included the Executive Director, Corporate Services, Mrs. Emily Osuji; the Executive Director, Operations, Dr. Kabir Katata; and several senior directors.

Mr. Sunday stressed that effective collaboration with the EFCC is critical to the successful liquidation of failed banks, particularly in the areas of asset realisation and debt recovery. He explained that proceeds from such recoveries are used to settle uninsured depositors, adding that challenges such as asset stripping and concealment by bank operators often undermine liquidation efforts.

According to him, closer cooperation with the EFCC would enhance asset tracing, recovery and enforcement, while also strengthening efforts to combat banking fraud and other financial crimes. He noted that the NDIC, through its mandates of deposit guarantee, bank supervision, distress resolution and bank liquidation, plays a vital role in safeguarding financial system stability and protecting depositors’ funds.

In his response, EFCC Chairman, Mr. Olukoyede, reaffirmed the Commission’s commitment to sustaining a strong working relationship with the NDIC in addressing financial crimes within the banking sector. He acknowledged the longstanding cooperation between both agencies, particularly in investigations and capacity building.

Mr. Olukoyede disclosed that the EFCC has dedicated units, including the Bank Fraud Section, that handle NDIC-related cases. He urged the Corporation to forward any pending cases for prompt review to ensure effective monitoring and timely action.

He further highlighted the role of the EFCC’s Fraud Risk Assessment and Control Department in promoting compliance, sound risk management and strong internal controls, pledging continued collaboration to safeguard the stability and integrity of Nigeria’s banking system.