The Nigeria Deposit Insurance Corporation (NDIC) has announced its intention to launch a thorough investigation into the directors of 183 banks whose operating licenses were recently revoked by the Central Bank of Nigeria (CBN). This significant action, unveiled by Mr. Bello Hassan, the Managing Director of NDIC, during a capacity-building workshop in Lagos, underscores the corporation's unwavering commitment to combating financial malpractices and bank fraud. The NDIC aims to uphold integrity and stability within the Nigerian banking sector by holding accountable those responsible for misconducts that may have led to these license revocations.

This proactive approach involves a strategic collaboration between the NDIC, the Economic and Financial Crimes Commission (EFCC), and the Nigerian Police. Mr. Henry Fomah, Head of the Legal Department of NDIC, who represented Mr. Bello Hassan, provided an update on ongoing legal proceedings. Currently, there are 12 prosecution cases in progress across various courts, 25 ongoing investigations with the Nigeria Financial Intelligence Unit (NFIU), 11 with the EFCC, and five concluded investigations referred to the Federal Ministry of Justice for advice and prosecution. The objective is to ensure that individuals found responsible for the collapse of these institutions are held legally accountable.

Among the institutions under scrutiny is Eyowo, a technology company that operated as a digital microfinance bank until its license was revoked by the CBN in May. Following the revocation, Eyowo initially informed its customers that they would be unable to send or receive money, promising to work towards regaining its operating license and assuring them of the security of their funds. Despite these reassurances, customers expressed anxiety and displeasure over their inability to complete transactions or withdraw their money.

In a subsequent development, Yomi Adedeji, Eyowo's co-CEO, declared in June that the business would soon resume providing financial services under a Payment Solution Service Providers (PSSP) license, claiming 98.8% readiness. However, an internal email from the company later that month revealed a different reality: the winding up of Softcom and Eyowo as they were known, with all processes, procedures, responsibilities, and departments being dissolved. This internal communication followed a particularly dismal performance in its Q1 2023 numbers. Although Eyowo later attempted to backtrack, insisting it was pivoting into a financial technology platform focused on "financial connectedness and intelligence," the NDIC has officially noted the company's status as "CLOSED," supporting reports of its operational shutdown.

In parallel with the investigations, the Nigeria Deposit Insurance Corporation has commenced the process of paying back depositors in the 179 microfinance banks and four primary mortgage banks whose licenses were revoked, including Eyowo. Affected depositors have been instructed to provide replacement bank accounts in commercial banks for their payments. For those without alternate accounts or who have yet to be verified, the NDIC advises visiting the nearest NDIC office with proof of account ownership and a verifiable form of identification, or downloading the online verification form from the commission's website.

The NDIC also clarified its insurance coverage limits: N250,000 for microfinance banks and N500,000 for primary mortgage banks. For depositors with amounts exceeding these insured limits, the corporation has initiated the sale of the closed banks' assets and the recovery of outstanding debts to facilitate the payment of their remaining balances. This comprehensive approach aims to ensure financial stability, hold responsible parties accountable, and protect depositors in the wake of these significant banking sector changes.