NDIC Warns Banks Against Concealing Insider Abuses

On August 26, the Nigeria Deposit Insurance Corporation (NDIC) issued a warning to banks regarding the concealment of insider abuses and other criminal activities. Oladipo Kushimo, Head of Legal Unit at NDIC, stated that banks that shield offenders could face enforcement actions under the Banks and Other Financial Institutions Act (BOFIA).

This warning was made during a session titled “Too Big to Fail?” at the Nigerian Bar Association’s Annual General Conference in Port Harcourt. Kushimo highlighted instances where banks failed to disclose insider offenses, particularly concerning improperly granted loans.

He encouraged lawyers, bank employees, and stakeholders to report any insider abuse to NDIC, which could lead to criminal investigations. Kushimo also discussed the importance of deposit insurance in protecting customers, noting that insured deposits of up to ₦5 million cover about 98 percent of depositors.

He emphasized the need for strong regulatory measures to maintain financial stability in the banking sector.