IN a startling revelation, Nigeria’s Economic and Financial Crimes Commission (EFCC) has issued a stark warning about the rampant financial crimes plaguing the country’s banking sector. According to EFCC Chairman Ola Olukayode, an alarming 70 percent of financial crimes in the nation can be directly linked to fraudulent activities within banks.
‘Banking fraud in Nigeria is both insider and outsider-related,’ remarked Olukayode during the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN). ‘The insider-related fraud comprises outright stealing of customers’ deposits, authorised loan facilities, forgery, and several other kinds of unhealthy and criminal practices.’
Olukayode highlighted the severity of the situation, particularly when collusion occurs between insiders and outsiders in perpetrating fraudulent activities. ‘It is estimated that about seventy per cent of financial crimes in Nigeria are traceable to the banking sector, this scenario is disturbing and unacceptable,’ he added.
To address these alarming trends, Olukayode urged ACAEBIN to take decisive action. ‘To curb these anomalies, ACAEBIN should ensure proper reconciliation of accounts every month by accounting requirements,’ he stressed. He emphasised the importance of actively monitoring financial activities, comparing actual revenue and expenses with budgeted figures, and conducting regular reviews and checks to detect and prevent fraudulent transactions.
In response, Prince Akamadu, Chairman of ACAEBIN, expressed the association’s commitment to implementing EFCC’s recommendations. ‘We are fully dedicated to addressing the foreign exchange challenges in Nigeria, one of the key objectives of the retreat,’ he affirmed.
As Nigeria grapples with the pervasive threat of financial crimes, the collaboration between EFCC and ACAEBIN signifies a unified effort to combat fraud and promote transparency within the banking sector. The implementation of stringent measures, including regular reconciliation of accounts and robust monitoring mechanisms, will be crucial in curbing illicit financial activities and ensuring the integrity of Nigeria’s financial system.