NDIC Says Bank Managers Are Responsible For Bank Failures In Nigeria

The Nigeria Deposit Insurance Corporation (NDIC) has revealed that failures in banks are caused by officers in positions to look after the institutions.

The Managing Director, Bello Hassan, made this known at an event which aims at curbing financial malpractices, themed, 'Effective Investigation and Prosecution of Banking Malpractices that led to Failure of Banks'.

According to Hassan, investigation and prosecution of failed banks’ offences were provided for under various legislations 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.

“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 own fail, rather they are destroyed and brought to their knees by acts of officers entrusted to look after the institutions.

“Consequently, 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.”

However, Hassan urged law enforcement, regulators, and supervisors to work together to ensure that those responsible for the death of banks are thoroughly dealt with if found guilty.