Investigation by NDIC to Probe Directors of Revoked Banks, Including Eyowo's Transition from Digital Bank to Financial Technology Platfo
The Nigeria Deposit Insurance Corporation (NDIC) has taken a significant step forward in its commitment to maintaining the integrity of the banking sector by announcing its intent to launch an investigation into the directors of 183 banks whose licenses were recently revoked. Among these institutions is Eyowo, a technology company that was operating as a digital bank until a recent transition. Mr. Bello Hassan, the Managing Director of NDIC, made this announcement during a capacity-building workshop for law enforcement agencies held in Lagos. He emphasized that this proactive measure reflects the NDIC's dedication to addressing challenges related to financial malpractices and bank fraud cases while upholding the sector's integrity.
By collaborating with the Economic and Financial Crimes Commission (EFCC) and the Nigerian police, the NDIC aims to hold those accountable for misconducts that may have contributed to the license revocations. This approach underscores the organization's commitment to safeguarding the stability of the banking industry. Eyowo, formerly a Digital Microfinance Bank, had its operating license revoked by the Central Bank of Nigeria in May, alongside other institutions. This caused disruptions for its customers, who were unable to conduct transactions or access their funds temporarily. The company assured its customers that their money was secure and expressed its commitment to resuming operations.
The co-CEO of Eyowo, Yomi Adedeji, later announced the company's intention to resume financial services through its Payment Solution Service Providers (PSSP) license. This decision aimed to continue offering payment services in alignment with the Central Bank's regulations. However, Eyowo faced challenges in Q1 2023, with internal emails indicating a significant transformation. The NDIC remains committed to investigating the matter, and the company's status is listed as CLOSED. The NDIC is involved in 12 prosecution cases across various courts, focusing on 183 MicroFinance Banks and Primary Mortgage Banks. Collaboration between agencies will ensure accountability and legal consequences for those responsible for the collapse.
Additionally, the NDIC has commenced the process of compensating depositors from Eyowo and 182 other closed banks. Depositors affected by the liquidation were requested to provide alternate bank accounts for their payments. For those without alternate accounts, the NDIC provided avenues for verification and payment. As the NDIC strives to uphold the stability and integrity of the banking sector, its comprehensive efforts encompass investigation, collaboration, and compensation for depositors. These actions underscore the organization's commitment to maintaining a resilient financial environment.
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