The Nigerian Deposit Insurance Corporation (NDIC) has revealed significant progress in the investigation and prosecution of financial malpractices linked to Nigerian banks, including insider fraud and institutional abuse that have led to bank failures in recent years.
This update was provided by the Acting Managing Director/Chief Executive of NDIC, Mrs. Emily Osuji, during her keynote address at the 2025 Annual Capacity-Building Workshop for Law Enforcement Agencies, held in Abuja. The theme of this year’s workshop is “Investigating and Prosecuting Financial Malpractices in Banks: A Critical Analysis of Strategies to Prevent Bank Failures.”
According to Osuji, the NDIC’s long-standing collaboration with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), Federal Ministry of Justice, and the Financial Malpractices Investigation Unit (FMIU), is yielding tangible results.
“There is no gainsaying that this collaboration has yielded and is still yielding results,” Osuji said. “We currently have 11 active prosecutions, 25 ongoing investigations with the FMIU, eight cases with the EFCC, and nine concluded investigations awaiting legal advice at the Ministry of Justice.”
She noted that the investigations include probes into the recent collapse of Heritage Bank, whose license was revoked by the Central Bank of Nigeria (CBN) in June. Osuji confirmed that several directors, managers, and officers of the failed bank are under scrutiny, with potential charges expected in the coming months.
The NDIC boss emphasized that insider abuses and operational fraud remain key causes of bank failure in Nigeria, posing a serious threat to depositor trust and the stability of the financial system.
“This workshop reaffirms our collective resolve to tackle insider-related fraud and malpractice head-on. It’s not just about regulation—it’s about restoring confidence in Nigeria’s banking sector,” she added.
As the financial sector undergoes digital transformation, the NDIC warned that cyber-enabled fraud is on the rise, putting more pressure on regulatory bodies and law enforcement to adapt. Osuji urged greater inter-agency collaboration to keep up with these evolving threats and highlighted the importance of proactive oversight and investigation.
In his remarks, Olufemi Kushimo, Director of the NDIC Legal Department, underscored the urgency of the workshop in the context of the federal government’s plan to build a $1 trillion economy by 2030.
“You cannot achieve a strong economy without a secure banking system. Fraud prevention, efficient prosecution, and financial system integrity are non-negotiable,” Kushimo stated.
He added that a strong justice system with swift and effective prosecution serves as a deterrent to fraudsters and protects both domestic and international investor confidence.
A former NDIC Director of Bank Examination, Dr. Michael Oladele, also presented a detailed paper on modern fraud typologies. He cautioned that financial crimes are growing globally due to increased system interconnectivity and called on Nigerian authorities to be more agile in preempting attacks.
“Cybercriminals are constantly innovating—sometimes a step ahead. We must continually evolve and educate our law enforcement operatives to anticipate and neutralize threats,” Oladele said.
Types of fraud identified include ATM card fraud, internet banking fraud, stolen cheque lodgments, unauthorized account credits, cash suppression, and cybercrimes involving phishing and ransomware attacks.
The NDIC has held this annual workshop since 2012, aiming to strengthen the capacity of investigative and regulatory agencies to effectively detect and prosecute financial crimes that jeopardize Nigeria’s banking integrity.
With over a dozen active fraud cases already in court and more under investigation, stakeholders at the workshop agreed that sustained collaboration, updated legal frameworks, and enhanced digital monitoring tools will be crucial to safeguarding the future of Nigeria’s financial system.