The Nigerian Deposit Insurance Corporation has said that the ongoing collaboration between agencies on tackling insider fraud and financial malpractices was yielding results in the form of investigations and prosecutions.

This was disclosed by the Acting Managing Director/Chief Executive of NDIC, Mrs. Emily Osuji, on Monday in her keynote address at the opening ceremony of the 2025 capacity-building workshop for law enforcement agencies themed, ‘Investigating and Prosecuting Financial Malpractices in Banks: A Critical Analysis of Strategies to Prevent Bank Failures.’

The NDIC has been organising this workshop for law enforcement stakeholders since 2012 to sharpen the skills of law enforcement operatives and officers from regulatory agencies that are involved in the investigation and prosecution of directors, managers, and officers of banks involved in malpractices and insider abuses that might have led to the collapse of their banks or financial institutions.

Osuji said, “There is no gainsaying that this collaboration has yielded and is still yielding results, particularly in the area of investigation and prosecution. Just like other initiatives by the Corporation, this workshop aims to complement the efforts of the Inter-Agency Task Force on the Implementation of the Failed Banks Act, and I want to believe that all the agencies involved as members of the task force are represented at this workshop.



The Corporation, whilst bearing in mind the positive impact of such collaboration, will continue to strive to enhance this synergy in the area of law enforcement relating to the investigation and prosecution of financial malpractices. Kindly permit me to use this forum to appeal to the members of the Task Force not to relent but to execute the given mandate diligently in achieving the objectives of establishing the Task Force.

“Through your collaborative efforts, I am aware that 11 cases are currently being prosecuted at various courts, 25 ongoing investigations with FMIU, eight with EFCC, and nine concluded investigations with the Federal Ministry of Justice for advice and prosecution. This is an indication that we are on the right course. As you are all aware, the Central Bank of Nigeria recently revoked the banking license of Heritage Bank PLC, and an investigation of some of the directors, managers, and officers of this failed insured institution is ongoing with a view to bringing to book those found culpable in the collapse of this institution.”

She added that the workshop was also to reiterate the corporation’s earlier resolve to unite in the fight occasioned by the menace of insider abuses and financial malpractices, which is a major cause of bank failure and, by extension, the erosion of public confidence in the banking system.

The acting MD posited that as the banking system is rapidly evolving with innovations, it is clear that a new phase of the financial technology-driven economy is currently reshaping the global financial services space.

“Banks and banking operations are becoming more vulnerable. The advancements in information technology that open new possibilities and vistas in banking operations have equally exposed the banking subsector to emerging threats. This situation increases the burden on the regulators and supervisors to enhance their operational capacities. It has also heightened the need for more collaboration between agencies involved in the fight against banking malpractices.

“The authorities are becoming more proactive with policies and examinations/investigations to ensure that the banks/financial institutions strengthen their internal control processes through strong risk management practices to prevent loss of funds and maintain depositors’ confidence in the banking system,” she maintained.

She highlighted the need for law enforcement officers to acquaint themselves with basic knowledge of the types of fraud prevalent in banks, which include the following: ATM card-related frauds, fraudulent transfers/withdrawals, internet banking frauds, lodgement of stolen warrants, unauthorised credits, outright cash theft, presentation of forged/stolen checks, suppression of customer deposits, money laundering/terrorism financing, and course cybercrimes.

In his comments, the Director of the Legal Department, NDIC, Olufemi Kushimo, also highlighted how the increase in financial technology has boosted cyber crimes and financial fraud.

He said that the development made a strong case for the workshop. Kushimo said, “Apart from a workshop to collaborate, it is an affirmation of our collective commitment to having a safe and sound financial system. It’s also a way for us to strategise, collaborate, and strengthen our interagency relationship in the fight against financial fraud and keep our financial system safe.“ This is a partnership for a strong financial system. You will agree with me that if we want to have a very strong economy by the year 2030, a $1tn economy, which is a dream of the president, it is important to keep our financial system safe. We have to restore confidence in the system, thereby eliminating crime. Apart from that, we must restore the confidence of the depositors and the international community.

“As we go on with this workshop, let us have it at the back of our minds as we deliberate on ways and means to strengthen the system, prevent internal fraud, and most importantly, strengthen the prosecution because the essence of criminal justice is deterrence. Once there is a threat of prosecution of financial crimes, it will deter people from committing insider-related crimes.”


A former Director of the Bank Examination Department of NDIC, Dr. Michael Oladele, who delivered a paper on the typology of fraud, told journalists at the event that the increase in fraud cases was not only in Nigeria but globally.

“It’s not just in Nigeria. There has been an uptick in fraud levels globally because of the interconnectedness of the banking system. So, the cybercriminals at work are usually a step ahead because they take that as a core job. So, we must not rest on our oars to deal with them, to be able to anticipate their activities.

“This is important because their nefarious activities could impact the financial system. You must have written a lot about individuals going through pain because they were defrauded,” he said.