The Managing Director, Nigeria Deposit Insurance Corporation (NDIC), has stated that banking institutions in Nigeria fail on the back of the officials entrusted to look after them, stressing that such occurrences will not be welcomed in Nigeria.
Mr. Bello Hassan, NDIC Managing Director said this at the “Effective Investigation and Prosecution of Banking Malpractices that led to Failure of Banks” workshop organized by the legal department of the corporation.
He emphasized that regulatory authorities need to work closely with law enforcement agencies to ensure the prosecution of guilty officers. Stating that actions like that will clamp down on such practices.
What the NDIC Boss is Saying
Mr. Hassasn said, “it is the responsibility of the authorities to ensure that the effect of the actions of these culprits is mitigated by bringing such people to book to serve as a deterrent to others”.
“As you all know, the human element is the greatest culprit in a bank failure. It has been said over and over, that banks do not on their fail, rather they are destroyed and brought to their knees by acts of officers entrusted to look after the institutions.”
He noted some legislation that has been provided for the investigation and prosecution of failed banks’ offenses, such as the: NDIC Act, 2006, the Failed Banks Act, 2004, the Banks and Other Financial Institutions Act (BOFIA), 2020, and the Companies and Allied Matters Act (CAMA), 2020, among others.
Mr. Mohammed Abubakar, Director of Public Prosecution of the Federation, whose attendance also graced the event, stressed the underlying impact of such a workshop on strengthening stakeholders commitment to eradicating banking malpractices.
He noted that banking system integrity is an indispensable code for ensuring socioeconomic robustness in Nigeria. Mr. Abubakar said, “the need for the effective regulation of the sector through the formulation of a cohesive legal framework and enforcement mechanism cannot be over-emphasized.”
He prompted the team saying that ”the theme of this workshop is a poignant reflection on the reckless years of banking malpractices that led to the failure of several banks, with the attendant unremitted consequences on our country’s socioeconomic vitality”.
The Public Prosecution Director also said they could recall the pains and despair that many Nigerians had to go through as a result of the failure of some banks, and prays that a continued effort is put in place to ensure that such a sad chapter of our national life would never be repeated.
Mr. Abdulrasheed Barwa, Executive Chairman Economic and Financial Crimes Commission (EFCC), said that many households, including small, medium and large businesses depend on the banking sector funds and other financial needs. He added that in most cases the banks fail to meet their expectations.
The EFCC boss stressed the need for the authority to take control of supervising the banks and the need to make regulatory measures more effective as a way of protecting banks from failing.
