Deposit Corporation, Anti-graft Agency Partner To Recover Failed Banks’ Debts, Assets

The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to strengthening collaboration with the Economic and Financial Crimes Commission (EFCC) to enhance the recovery of failed banks’ assets and debts as well as the investigation and prosecution of persons who contribute to the failure of banks.

The managing director and chief executive of the NDIC, Thompson Sunday, made this known during a courtesy visit by the corporation’s management to the chairman of the EFCC, Olanipekun Olukoyede, at the Commission’s Headquarters in Abuja.

The delegation included the executive director, Corporate Services, Emily Osuji; the executive director, Operations, Dr Kabir Katata; and other key directors of the Corporation.

Sunday explained that effective collaboration with the EFCC is critical to the successful liquidation of failed banks, which involves asset realisation and debt recovery, with the proceeds applied to the payment of uninsured deposits.

He noted that addressing cases of asset stripping and asset concealment requires close partnership with the EFCC through enhanced asset tracing, recovery, and enforcement actions. He also identified areas for collaboration in the Corporation’s efforts to address banking fraud and financial crimes in the banking system, and to prosecute individuals who contribute to bank failure.

The NDIC boss further emphasised that, through the effective implementation of its four core mandates of Deposit Guarantee, Bank Supervision, Distress Resolution and Bank Liquidation, the NDIC contributes significantly to ensuring the stability of the financial system.

He added that the ultimate objective of the Corporation is the protection of depositors’ funds, the prompt payment of depositors in the event of bank failure, and the strengthening of public confidence in the financial system.

He also noted that the NDIC and the EFCC share core values of integrity, professionalism and collaboration. He described the visit as a formal engagement towards strengthening institutional partnership, particularly in areas where EFCC’s investigative and prosecutorial capabilities are crucial to the achievement of NDIC’s mandates.

In his response, the chairman of the EFCC, Olukoyede, reaffirmed the Commission’s strong working relationship with the NDIC in addressing financial crimes in the banking sector.

He acknowledged the longstanding cooperation between the two institutions, especially in investigations and in capacity-building on the intricacies of banking operations.

Olukoyede informed the delegation about key departments within the Commission, including the Bank Fraud Section, which handles NDIC-related cases. He urged the Corporation to bring forward any pending cases for prompt review to ensure better traction and effective monitoring of progress.

He also highlighted the role of the EFCC’s Fraud Risk Assessment and Control Department, which focuses on proactive monitoring of compliance, promotion of sound risk management processes, and internal controls within public and private sector institutions. He described this as part of the EFCC’s broader efforts to support and safeguard the Nigerian economy.

The EFCC chairman pledged the Commission’s continued commitment to deepening collaboration and strengthening synergy with the NDIC to combat financial crimes, enhance asset recovery, and prosecute those whose actions undermine the stability and integrity of Nigeria’s banking sector.