Financial crimes in Nigeria traced to banks

AN estimated 70 percent of financial crimes in Nigeria can be traced back to the banking sector. The banking sector is increasingly becoming a cesspool of fraudulent activities and this is raising considerable challenge and concerns to the Economic and Financial Crimes Commission (EFCC).

EFCC’s chairman, Ola Olukayode, disclosed this while speaking at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria.

The EFCC boss, represented by the Director of Internal Audit EFCC, Idowu Apejoye, stressed the crucial role of Chief Audit Executives in combating fraud within the banking sector.

What he said:

“Broadly speaking, banking fraud in Nigeria is both insider and outsider-related. The insider-related fraud comprises outright stealing of customers’ deposits, authorised loan facilities, forgery and several other kinds of unhealthy and criminal practices.”

“And the absurd one is when there is a collaboration between the both of them. It is estimated that about seventy percent of financial crimes in Nigeria are traceable to the banking sector, this scenario is disturbing and unacceptable,” he added.

Olukayode said that to curb these anomalies, ACAEBIN should ensure proper reconciliation of accounts every month by accounting requirements.

He charged the association to actively monitor the financial activities of banks, comparing actual and budgeted revenue with expenses, and conducting periodic reviews and checks, among other measures.

The chairman of ACAEBIN, Prince Akamadu, expressed the association's commitment to implementing the recommendations provided by the EFCC boss. He also mentioned that the association is fully dedicated to addressing the foreign exchange challenges in Nigeria, one of the key objectives of the retreat.— Business Insider Africa