Section 77: Offences and penalties.

(1) Any person who, being a director, an officer, or staff of an insured institution-
(a) fails to take all reasonable care to secure compliance with the provisions of this Act, or
(c) fails to take all reasonable care to secure the authenticity of any statement submitted under the provisions of this Act or any Regulations made under it,
commits an offence and is liable on conviction to a fine of at least N10,000,000 or imprisonment for a term of at least five years or both.
(2) Any person, being a significant shareholder, a director, an officer, or staff of an insured institution, who-
(a) while he is in default in payment of any pecuniary obligation due to any insured institution, fails or neglects to cause any dividend declared and paid to him in respect of an insured institution to be applied towards satisfaction of any such pecuniary obligation within two working days of the receipt of any such declared dividend,
(b) allows any loan, advance, overdraft or credit facility taken by him in any insured institution to be classified as a non-performing loan,
commits an offence and is liable on conviction to a fine of at least N10,000,000 or imprisonment for a term of at least five years or both.
(3) In addition to the penalty prescribed in subsection (2), the following shall apply to a person convicted under that subsection, in the case of-
(a) paragraph (a), forfeit any dividend payment received and such forfeited dividend payment shall be applied towards the repayment of the due pecuniary obligation; and
(b) paragraph (b), all dividends payable to such director or significant shareholder by any insured institution, all the assets of the significant shareholder or director and all shares or interests of such significant shareholder or director in companies shall be available to liquidate such facilities, which shall have priority over any other liabilities of the significant shareholder or director including that of secured creditors and judgment creditors.
(4) A significant shareholder or director who is granted any loan advance, or credit facility in breach of the provisions of this Act, commits an offence and is liable on conviction to a fine of an amount equivalent to at least 25% of the amount of such loan, advance or credit facility or to imprisonment for a term of three years.
(5) All directors of an insured institution shall be liable jointly and severally to the insured institution for any loss arising from a contravention of the provisions of this section.
(6) For the purpose of subsection (4), the term "Director" includes director's wife, husband, father, mother, brother, sister, son, daughter, their spouses, a company in which the director is also a director or shareholder, a company whose board, or managing director, is accustomed to act in accordance with the advice, directions or instructions of the director and all other related parties as may be determined by the Corporation.
(7) Any insured institution that reimburses or pays for a staff, officer or director directly or indirectly a fine imposed under this Act, commits an offence and is liable on conviction to a fine of at least N20,000,000 and also forfeit the amount repaid or reimbursed to the staff.
(8) Any director or officer of the insured institution who grants, allows to be granted or is any way involved in the granting of a loan, a guarantee or credit facility-
(a) without security as required by the insured institution's regulations or policy; or
(b) in contravention of the insured institution's regulations or policy or this Act or regulation made under it,
commits an offence and is liable on conviction to the repayment of the unsecured loan, guarantee or facility including interest and imprisonment for a term of two years without the option of fine.
(9) Any principal officer of an insured institution who contravenes the provisions of this section, commits an offence and is liable to a fine not more than N5,000,000 or imprisonment for a term of three years or both.
(10) Without prejudice to criminal prosecution as provided in this Section, any person found guilty of violating the provision of any law referred to in this section shall in addition to imprisonment upon conviction be-
(a) liable to forfeiture of all assets derived from commission of the offence; and
(b) subject to penalty assessed as the loss suffered by the insured institution as a result of the commission of such offence or which is related directly to the amount involved in the offence committed.